Brussels, 10/02/2009 (Agence Europe) - Given the deterioration in the economic situation, the EU must continue to give preference to a common approach and not turn towards economic nationalism. This is the message given by UEAPME which denounces the danger of a protectionist slide in member state recovery plans, some of which are tempted to discriminate between producers on the basis of nationality alone. Welcoming the decision by the Czech Republic to convene an informal summit of EU27 leaders by end February, the European association of SMEs and craft workers calls for respect of internal market and competition rules. “Heads of state and government must quickly agree on a coordinated policy response based on Europe's values and rules and must understand that reverting to nationalism is a short-sighted and irresponsible choice. Protectionism is not an option at any stage”, said Andrea Benassi, UEAPME General Secretary, in a press release published on Tuesday 10 February, taking the view that nationalism is a backward reaction. “Beggar-my-neighbour policies aimed at sheltering national champions cannot be tolerated in good economic times, let alone in the present downturn”, he stressed.
The day before, Internal Market Commissioner Charlie McCreevy had launched an identical appeal, specifically targeting the constraints imposed on the banking sector. “We have seen huge sums of taxpayers' money committed to bail out the banks and other sectors. More will no doubt be needed to unblock lending to the private sector”, Mr Mc Creevy said in a speech delivered on 9 February at the Dublin Institute of European and International Affairs. Although governments are legitimately seeking to obtain only contributions that will have the best effect, there is “a growing trend to impose conditionality on such government aid”. So, “requiring banks or companies to use the money, for example, to support the domestic economy at the expense of others” is a classic example “of the type of short term political reaction that will stir up protectionism as well as creating new barriers in our internal market”', the commissioner warns. (A.B./transl.jl)