No new bailout for Eastern nations: EU

Brussels, Mar 2: Angela Merkel, the German Chancellor and other European Union (EU) leaders rejected a new multi-billion euro (dollar) bailout for Eastern Europe on Sunday, Mar 1. EU suggested that the additional aid should be given to struggling nations on case-by-case basis.

In a meet held to discuss the global slump Merkel said EU should fight economic crisis together. Merkel's stand on this issue 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. He had suggested setting up an EU fund of $241 billion to held the eastern member countries whose currencies are plummeting due to recession.

But Hungary's plans were rejected by Germany and others. Meanwhile EU Commission President Jose Manuel Barraso said that Eastern nations are already getting billions in emergency rescue funds and loans and did not need a new bailout plan.

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