CZECH PRIME minister Mirek Topolanek has warned that the economic crisis is prompting protectionist and xenophobic reactions in some EU states which threaten the European single market.
Mr Topolanek sought, however, to put an end to a bitter public dispute with French president Nicolas Sarkozy, which he acknowledged yesterday was damaging both leaders’ political reputations.
“I will not continue this media exchange with my friend Sarkozy, which is very damaging for both of us. This exchange was not necessary; I have learnt a lesson. Next time I will call him up,” said Mr Topolanek, who announced he had called an emergency summit of EU leaders for March 1st to discuss the economic crisis and protectionism.
The Czech Republic, which holds the rotating EU presidency, has been deeply angered by a French plan to provide €6 billion in state aid to the French car industry on condition that no jobs are outsourced to other countries.
Shortly before announcing the plan Mr Sarkozy suggested that French car manufacturers should return production to France rather than maintaining it in cheaper new EU member states such as the Czech Republic.
“We have to realise that the individual member states have different approaches to solving this issue. Some member states call for more protectionism, others call for adherence to rules,” said Mr Topolanek, who noted that the situation in many member states was worrying him and called for a meeting to ensure co-operation in EU states.
European Commission president José Manuel Barroso, who attended a joint press conference with Mr Topolanek in Brussels, also made an appeal to EU leaders to show their commitment to Europe and the single market.
“We have to do a battle against economic nationalism and internal domestic protectionism ... Don’t try to go it alone because that would be tragic for Europe and this would have tragic repercussions for you and your country as it could result in the loss of the single market,” he told reporters.
Mr Barroso said the commission would scrutinise France’s €6 billion bailout plan for its car industry. He will meet French prime minister François Fillon today in Brussels.
A number of French ministers defended the plan yesterday. “It is not protectionism. It is defending our industry and defending our jobs. I think it is the least one can expect from the government when faced by this crisis,” said EU affairs minister Bruno Le Maire.