Germany Rejects Eastern Europe Bailout

German Chancellor Angela Merkel rejected the idea of a single EU bailout of Eastern European economies, which are being hit very hard by the current worldwide economic crisis. Germany has Europe’s largest economy and it has been under pressure to lead the way in helping eastern members of the EU.

Merkel is adamant that a one size fits all bailout is not the right approach: “Saying that the situation is the same for all Central and Eastern European states, I don't see that," said Merkel, adding "you cannot compare" the dire situation in Hungary with that of other countries.

The EU’s current president, Prime Minister Mirek Topolanke of the Czech Republic, has called on the group to act together to prevent increasing divides within the group and continent. He said that the EU “does not want any new dividing lines. We do not want a Europe divided along a North-South or an East-West line, pursuing a beggar-thy-neighbour policy is unacceptable.”

The EU is currently holding talks to come up with a plan to help the faltering economies. The European Bank of Reconstruction and Development, the European Investment Bank and the World Bank said they would jointly provide some €24.5 billion to help the eastern European nations, but that is seen by many as just a small start to what is needed.