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Merkel, EU reject bailout for eastern Europe

German Chancellor Angela Merkel and other EU leaders flatly rejected a new multibillion euro bailout for eastern Europe on March 1, suggesting that additional aid be given to struggling nations only on a case-by-case basis.

"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.

That tough stance came even as Hungarian Prime Minister Ferenc Gyurcsany warned that the global credit crunch was creating a widening economic chasm in the 27-nation bloc which threatened to rend Europe.

"We should not allow that a new Iron Curtain should be set up and divide Europe," Gyurcsany told reporters. (AP)

Shukan ST: March 13, 2009

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World News Merkel, EU reject bailout for eastern Europe German Chancellor Angela Merkel and other EU leaders flatly rejected a new multibillion euro bailout for eastern Europe on March 1, suggesting that additional aid be given to struggling nations only on a case-by-case basis. "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. That tough stance came even as Hungarian Prime Minister Ferenc Gyurcsany warned that the global credit crunch was creating a widening economic chasm in the 27-nation bloc which threatened to rend Europe. "We should not allow that a new Iron Curtain should be set up and divide Europe," Gyurcsany told reporters. (AP) Shukan ST: March 13, 2009 (C) All rights reserved