25 March 2009

Europe breaking with US over stimulus

Clearly the US wants to push the nuclear MAD stimulus lets destroy the worlds currencies together and do the pigeon drop on our creditors and leave them with old newspaper instead of banknotes and are annoyed even the euro socialists are not that keen.

The Anglo world clearly want to discredit the Euro and do deals with Asia hence all the emphasis on the Eastern Europe debt problem ahead of the G20, have they cut a deal with the Chinese at the expense of europe vis a vis IMF representation.

Why else are Brown, Rudd and Obama so keen to praise each others efforts....

Something's happening here, what it is ain't exactly clear......

"European Union President Blasts U.S. Economic Stimulus
By STEPHEN CASTLE and DAN BILEFSKY

BRUSSELS — Transatlantic tension over the handling of the global economic crisis intensified on Wednesday when the prime minister of the Czech Republic, which holds the European Union presidency, described the U. S. stimulus measures as the “way to hell.”

Addressing the European Parliament in Strasbourg, France, Prime Minister Mirek Topolanek argued that the Obama administration’s fiscal package and financial bailout “will undermine the stability of the global financial market.”

Mr. Topolanek’s comments, only a day after he offered his government’s resignation following a no confidence vote, took European officials by surprise.

The rotating E.U. presidency lasts for six months and the country that holds it is supposed to speak on behalf of the entire 27-nation bloc.

The statement came just a week before al meeting of the Group of 20 leaders of the world’s biggest economies in London which aims to forge an international consensus on the economic crisis. His comments also underlined potential ideological strains between Washington and Europe as President Barack Obama prepares to travel to Prague in less than two weeks for a summit intended to bolster transatlantic relations and show that the United States and Europe are united over economic policy.

Only five days ago, E.U. leaders had apparently buried their differences and agree on a common policy ahead of the London meeting. At last Friday’s E.U. summit, they pledged an additional 75 billion euros to finance loans by the International Monetary Fund and to double a credit line for its struggling eastern economies.

European countries, including Germany, have resisted calls to increase the scale of their fiscal stimulus arguing, that the G-20 should concentrate on tightening financial regulation.

One E.U. official, speaking on condition of anonymity because of the sensitivity of the issue, said the comments reflected that, unlike other East European countries such as Hungary, the Czech economy has proved relatively resilient.

“He is sitting in the Czech Republic,” the official said “where growth is holding up relatively well and a fiscal stimulus makes no sense.”

“He has never been in favor of a big fiscal stimulus — though he did not argue against it at the E.U. summit.”

Analysts in Prague said that Mr. Topolanek was eager to show Europe that he was still politically relevant despite the collapse of the government. They noted that his railing against interventionism was consistent with the liberal economic ideology of his center-right Civic Democratic party.

In recent months he has sparred with opposition Social Democrats over their calls for increased spending during the economic downturn.

While Mr. Obama in recent weeks has pleaded with European partners to stimulate the economy, countries including the Czech Republic that endured decades of Communism are deeply suspicion of state intervention.

The Czech’s comments were likely to come as an embarrassment Gordon Brown, the British prime minister, who was visiting the United States on Wednesday as part of the preparations for hosting the G-20 meeting.

Martin Schulz, leader of the socialist group in the European Parliament, said that the description of the Obama recovery plans as “the road to hell” was “not the level on which the E.U. ought to be operating with the United States.”

“You have not understood what the task of the E.U. presidency is,” Mr. Schulz told the Czech prime minister.

Stephen Castle reported from Brussels, and Dan Bilefsky reported from Prague."

I'm not sure whats cooking....but somethings up..

1 comment:

Anonymous said...

I have a different take. I think the EU is part of the plan contingent with the expanded SDR global currency. I think they happened to elect a decent leader and he´s speaking out of step with the systemic inertia of the EU as it was designed.