PDA

View Full Version : EU presidency: US economic plans 'a road to hell'



b1e9a8r5s
03-25-2009, 11:09 AM
STRASBOURG, France (AP) -- The president of the European Union on Wednesday slammed U.S. plans to spend its way out of recession as "a road to hell."

Czech Prime Minister Mirek Topolanek, whose country currently holds the rotating EU presidency, told the European Parliament that President Barack Obama's massive stimulus package and banking bailout "will undermine the liquidity of the global financial market."

A day after his government collapsed because of a parliamentary vote of no-confidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.

The blunt comments pushed other European politicians into damage control mode, with some reproaching the Czech leader for his language and others reaffirming their good diplomatic ties with the U.S.

Most European leaders say the focus should be on tighter financial regulation, while the U.S. is pushing for larger economic stimulus plans -- but nobody has so far escalated the rhetoric to such strident levels.

Topolanek's words are the strongest criticism so far from a European leader as the 27-nation bloc bristles from recent U.S. criticism that it is not spending enough to stimulate demand.

They also pave the way for a stormy summit next week in London between leaders of the Group of 20 industrialized countries.

The host of the summit, British Prime Minister Gordon Brown, praised Obama on Tuesday for his willingness to work with Europe on reforming the global economy in the run-up to the G-20 summit.

The United States plans to spend heavily to try and lift its economy out of recession with a $787 billion economic stimulus plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.

To encourage banks to lend again, the government will also pump $1 trillion into the financial system by buying up treasury bonds and mortgage securities in an effort to clear some of the "toxic assets" -- devalued and untradeable assets -- from banks' balance sheets.

Topolanek, who will remain EU president until a new Czech government is established, bluntly said that "the United States did not take the right path.".

He slammed the U.S.' widening budget deficit and protectionist trade measures -- such as the "Buy America" policies included in the stimulus bill, although Obama has said he opposes protectionism in principle.

Topolanek said that "all of these steps, these combinations and permanency is the road to hell."

"We need to read the history books and the lessons of history and the biggest success of the (EU) is the refusal to go this way," he said.

"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the liquidity of the global financial market," said Topolanek.

Since the EU presidency is expected to always to take the sensitivities of the member nations into account, the statement was daring and alarmed other European leaders, who moved quickly to mend fences with Washington.

Martin Schulz, leader of the Socialist group in the European parliament, said it was "not the level on which the EU ought to be operating with the United States."

"You have not understood what the task of the EU presidency is," he told Topolanek in the debate.

European Commission President Jose Manuel Barroso also weighed in with a tribute to trans-Atlantic cooperation.

"I really believe it is not a helpful debate, as I see sometimes, to try to suggest that Americans and Europeans are coming with very different approaches to the crisis," he told legislators. "On the contrary, what we are seeing is increased convergence."

Although German Chancellor Angela Merkel has warned against a spending race and said that ever bigger bailouts would create too much of a budgetary risk, French President Nicolas Sarkozy said Tuesday he is prepared to support the economy with a new spending package that may go down well in Washington.

Obama insisted Tuesday that his massive budget proposal is moving the nation down the right path and will help the ailing economy grow again. "This budget is inseparable from this recovery," he said, "because it is what lays the foundation for a secure and lasting prosperity."

Obama also claimed early progress in his aggressive campaign to lead the United States out of its worst economic crisis in 70 years and declared that despite obstacles ahead, the U.S. is "moving in the right direction."

http://finance.yahoo.com/news/EU-presidency-US-economic-apf-14737788.html

behindmydesk
03-25-2009, 11:21 AM
http://www.youtube.com/watch?v=94lW6Y4tBXs

That's an awesome exchange between a parliment and Gordon Brown.

Zep
03-25-2009, 11:26 AM
Interesting, yahoo has already edited their own article, I wonder what the motivation for the change was.


STRASBOURG, France (AP) -- The president of the European Union slammed President Barack Obama's plans to have the U.S. spend its way out of recession as "a road to hell," underscoring European differences with Washington ahead of a crucial summit next week on fixing the world economy.

Czech Prime Minister Mirek Topolanek, whose country currently holds the rotating EU presidency, told the European Parliament on Wednesday that Obama's massive stimulus package and banking bailout "will undermine the liquidity of the global financial market."

Other European politicians kept their distance from the blunt remarks, with some reproaching the Czech leader for his strong language and others reaffirming their good diplomatic ties with the U.S.

They removed the paragraph about the vote of no-confidence.

Apophis
03-25-2009, 11:36 AM
it does say that the government collapsed.. and they didnt want to make the EU President not mean something? but I find it interesting as well that they edited...


A day after his government collapsed because of a parliamentary vote of no-confidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.

b1e9a8r5s
03-25-2009, 11:40 AM
it does say that the government collapsed.. and they didnt want to make the EU President not mean something? but I find it interesting as well that they edited...

I beleive he was saying that if you click on the link now, they have since removed that paragraph, which is rather odd.

Zep
03-25-2009, 11:46 AM
I beleive he was saying that if you click on the link now, they have since removed that paragraph, which is rather odd.

Exactly.

dbroncos78087
03-25-2009, 11:46 AM
A day after his government collapsed because of a parliamentary vote of no-confidence, Topolanek took the EU presidency on a collision course with Washington over how to deal with the global economic recession.

With this quote the guy (not the poster) loses all creditability with me. So we are handling our situation badly but this guy cant run his government. So how does he know what will work?

ari1013
03-25-2009, 12:10 PM
So the guy whose own government collapses for inaction is telling us that we're the idiots for taking action.

What a crock.

cabernetluver
03-25-2009, 12:20 PM
So the guy whose own government collapses for inaction is telling us that we're the idiots for taking action.

What a crock.

Damn it Ari, you keep taking the words right out of my mouth

ari1013
03-25-2009, 12:34 PM
This really gets me. The Europeans are in such worse shape than us because their "union" is being exposed as total BS. Their economic cooperation is supposed to prevent situations like Spain's collapse from happening thanks to joint policies dealing with the Euro.

But the countries that aren't hurting much like Germany don't want to see the Euro become inflated and nobody at all can agree on the optimal rate for the ECB.

All that ethnocentrism in Europe was bound to rear its ugly head one of these days.