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EU leaders reject more stimulus plan

(Agencies)
Updated: 2009-03-20 11:11

Britain's Prime Minister Gordon Brown (L) greets German Chancellor Angela Merkel during the first day meeting of EU spring summit in Brussels, capital of Belgium, March 19, 2009. [Xinhua]

While the EU leaders rejected major stimulus plans, they agreed on a euro5 billion energy package likely to include gas pipelines and plans to bury climate-damaging carbon, Barroso said. He did not detail which projects won approval, though a final list was expected at the summit's close Friday. Again, Merkel had led opposition, warning of higher budget deficits despite the benefits for Europe's environmental credibility.

The EU wants to be at the vanguard of UN-sponsored global warming talks in Copenhagen later this year.

EU leaders are seeking agreement Friday on how much aid to give to poor nations in exchange for support for a global climate change pact. Environmental groups say the EU should contribute around euro35 billion ($47 billion) a year by 2020 to poorer nations to help them cut emissions.

On the economy, European governments already resisted a push for more spending from the US at a summit of Group of 20 finance ministers last week, and Thursday's stand underlined their position going into an April 2 summit of G-20 national leaders in London.

"You cannot solve everything by using taxpayers' money. The huge deficit of the United States is a problem because it takes away resources for credit markets all over the world," said Swedish Prime Minister Fredrik Reinfeldt, who will take over the EU presidency in July.

French President Nicolas Sarkozy shakes hands wiht Hungarian Prime Minsiter Ferenc Gyurcsány during the first day meeting of EU spring summit in Brussels, capital of Belgium March 19, 2009. [Xinhua]

The heavy impact of recession is hitting a growing number of Europeans.

When Sarkozy came to Brussels on Thursday, he had to leave his prime minister behind to deal with a nation hit by a wave of protests and strikes that disrupted transport and schools. All shared a common demand: more action to counter the recession and unemployment.

More than 1 million people marched in cities and towns around France Thursday, and a few hundred youths showered police with bottles and stones at a big protest in Paris. Meanwhile, news came that France's economy is shrinking at its fastest pace in over 30 years.

Still, Premier Francois Fillon told the nation, "We cannot go beyond what we have done. The government has a duty to act responsibly."

In Germany, companies piled on more bad results Thursday. Chemicals producer Altana AG turned literary Thursday, saying it was "caught in the maelstrom" of the global crisis, with profits in 2008 down 25 percent.

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