Eurozone finance ministers seek coordinated response to economic crisis

Special Report:Global Financial Crisis

BRUSSELS, Feb. 9 (Chinese media) -- Euro zone finance ministers Monday called for a coordinated response to the global economic turmoil as different national actions have raised concerns over a return to protectionism.

"I am a bit concerned that member state after member state are arranging their own plans and programs," said Luxembourg's Prime Minister Jean-Claude Juncker, who chairs the monthly meeting of euro zone finance ministers, or Eurogroup.

"Better policy coordination is needed," he said.

Juncker's call was echoed by his Spanish counterpart Pedro Solbes, who warned against a possible increase in protectionism within Europe as each country resorts to its own rescue.

"Everywhere where we have a difficult situation there is always a temptation to solve the problem on national terms," Solbes told reporters, "We understand the social perspective of it, but nevertheless protectionism had always been a very bad solution."

Dutch Finance Minister Wouter Bos also warned against a return to protectionism.

"I believe it is not good for any of our national economies to give way to protectionism," he said. "It is unfair to let countries outside the EU or outside the developed world, pay for our financial crisis."

The euro zone finance ministers met amid an escalating row between Prague and Paris over ways to help the ailing car industry.

French President Nicolas Sarkozy suggested last week on national television that his country's car producers such as PSA Peugeot Citroen should relocate their plants in the Czech Republicto France in a bid to keep domestic jobs in an economic downturn.

Czech Prime Minister Mirek Topolanek, whose country holds the EU rotating presidency, on Monday attacked Sarkozy's proposal as a threat to the ratification of EU's reforming Lisbon Treaty.

The Czech parliament's lower house has put off its vote on the Lisbon Treaty until Feb. 17.

Slovak Prime Minister Robert Fico, whose country also hosts a plant owned by PSA Peugeot Citroen, warned that Sarkozy's remarks could incur retaliatory measures.

"Calls for such brutal protectionism are not helping anyone," Fico told reporters in Bratislava, "If one country starts behaving like this, for example France, then we will send Gaz de France home."

Earlier Monday, France announced an agreement with PSA Peugeot Citroen and Renault to provide each car maker with a loan of three billion euros (3.9 billion U.S. dollars) after they pledged to keep jobs in France this year.

The arrangement has aroused concern among other EU member states, including Germany and Sweden, which feared their domestic car makers would be put at a disadvantage.

The European Commission said it would look carefully into the French plan.

"The Commission will need to scrutinize very carefully details of the subsidies, the conditions attached to make sure of their compliance with state aid and single market rules," Commission spokesman Jonathan Todd said.

In an apparent bid to better coordinate national stimulus plans and counter any trends toward protectionism, the Commission announced Monday the EU's 27 leaders will hold special summit talks later this month, less than four weeks before a scheduled EU summit in March.

EU spokesman Johannes Laitenberger told a regular press briefing that the idea for the summit came during "an intensive and constructive telephone conversation" between European Commission President Jose Manuel Barroso and Topolanek.

He said that the two leaders will meet in Brussels on Wednesday to discuss the summit's agenda and date.

Leaders at the summit will have a preparatory exchange of views on economic recovery plans member states have unveiled in the face of the financial crisis, Laitenberger said.

"The goal of this meeting of heads of state and government will be to examine steps taken up to now within the recovery plan and the efficiency of these steps," Topolanek said in Prague.

It would examine "efforts going on in the member states with the economic stimulus" and "what could usefully be done also with a view to intensifying efforts," he said.

Topolanek said "the last impetus" behind the summit was "the latest selective and protectionist steps and statements made, among others, by President Sarkozy."