EU Summit Fails

By Amy Kim

EU Summit Fails

•The weekend’s EU summit meeting in Brussels failed to deliver anything of important

When

•1st March, 2009

Who?

Eastern Europe

RussiaPolandUkraineBulgariaHungaryAlbaniaGeorgiaRomania

Western Europe

GermanyFranceSpain

PortugalGreece

LuxembourgUnited

KingdomFinlandSwedenAustria

European Union

For The Rescue of Eastern Europe

For The Rescue of Eastern Europe

What

•There is a stalemate in discussions and progress as Western European leaders seek to spend less on the bailout

Problem

•Western European countries are worrying that they will have to foot the bill for the Eastern European countries

Stalemate•Western and Eastern Europe both are

under a severe recession

•Will Germany and other Western European countries have to recapitalize their banks?

• If one country such as Hungary or one of the Baltic three went under, Western Europe would be among the first to suffer

Why

1.) Banks from Austria, Italy, and Sweden, have invested and lent heavily to Eastern Europe

2.) Destabilize the euro

3.) Social unrest among Eastern Europe as they turn to nationalists

For Example

•Hungarian Prime Minister Ferenec Gyurcsany asked other EU governments to come up with a $125 billion rescue for banks that lent heavily in Eastern Europe

•“That Western states will shoulder these bank’s branches in the east.”

How I Feel

I feel really sorry for Western Europe because they keep having to foot the bill

But..

I wish that they think of a solution because more countries are seeking help from IMF for funding. Also, I believe that European Nations need to start taking responsibility for themselves

Relation1.) Alliances

-Western Europe HAS to help Eastern Europe (Unspoken understanding); just how much help is undecided

2.) Nationalism

-If Eastern Europe feels abandoned by Western Europe, then E.E. might turn to nationalists

-Western Europe doesn’t want to foot the bill for other countries while they are in their own economic crisis

3.) Treaty of Vienna

-If the EU makes Western Countries (Germany) pay for the Eastern EUropean Countries, then there will be more resentment and and ill will.

Bibliography

• “The risks of a bust-up in Europe | The bill that could break up Europe | The Economist.” 4 Mar 2009 <http://www.economist.com/opinion/displayStory.cfm?story_id=13184655&fsrc=nwlbtwfree&source=most_commented>.

• “COMMENT: EU summit fails to come up with CEE goods - BUSINESS NEW EUROPE.” 4 Mar 2009 <http://businessneweurope.eu/story1480>.