Eurozone Finance Ministers Seek Coordinated Response to Economic Crisis
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Euro zone finance ministers on Monday called for a coordinated response to the global economic turmoil as different national actions have raised concerns over a return to protectionism.
"I am a bit concerned that member state after member state are arranging their own plans and programs," said Luxembourg's Prime Minister Jean-Claude Juncker, who chairs the monthly meeting of euro zone finance ministers, or Eurogroup.
"Better policy coordination is needed," he said.
Juncker's call was echoed by his Spanish counterpart Pedro Solbes, who warned against a possible increase in protectionism within Europe as each country resorts to its own rescue.
"Everywhere where we have a difficult situation there is always a temptation to solve the problem on national terms," Solbes told reporters, "We understand the social perspective of it, but nevertheless protectionism had always been a very bad solution."
Dutch Finance Minister Wouter Bos also warned against a return to protectionism.
"I believe it is not good for any of our national economies to give way to protectionism," he said. "It is unfair to let countries outside the EU or outside the developed world, pay for our financial crisis."
The euro zone finance ministers met amid an escalating row between Prague and Paris over ways to help the ailing car industry.
French President Nicolas Sarkozy suggested last week on national television that his country's car producers such as PSA Peugeot Citroen should relocate their plants in the Czech Republicto France in a bid to keep domestic jobs in an economic downturn.
Czech Prime Minister Mirek Topolanek, whose country holds the EU rotating presidency, on Monday attacked Sarkozy's proposal as a threat to the ratification of EU's reforming Lisbon Treaty.
The Czech parliament's lower house has put off its vote on the Lisbon Treaty until February 17.
Slovak Prime Minister Robert Fico, whose country also hosts a plant owned by PSA Peugeot Citroen, warned that Sarkozy's remarks could incur retaliatory measures.
"Calls for such brutal protectionism are not helping anyone," Fico told reporters in Bratislava, "If one country starts behaving like this, for example France, then we will send Gaz de France home."