MOSCOW. (RIA Novosti political commentator Andrei Fedyashin) – The European Union is beginning this difficult week with the discussion of its financial problems, which are getting more serious with every passing day.
From February 16 to 20, European finance ministers and heads of central banks will discuss in Brussels and Strasbourg what to do with finances, the economy, and the banking system at almost unremitting meetings. Moreover, Austrians claim that a big threat to the EU is emanating from Eastern Europe. To bring this home to the EU leaders, several Austrian delegations are arriving in Brussels this week.
Austrians are convinced that experts in the western part of the EU are mistaken about the scale of financial problems in its eastern part, and that Central Europe, as well as Ukraine and Moldova, were affected by the crisis to a much greater extent than it was previously believed. They demand that Brussels immediately revise a package of measures to support the balances of payment of the East European countries. Brussels has allocated 25 billion euros for these purposes. Austrians believe that at least 150 billion euros should go to Latvia, Lithuania, Estonia, Hungary and Romania to prevent mass-scale bankruptcies or national defaults. If banks in these countries start collapsing one after another, the Austrian banking system will fall like a house of cards.
Brussels received such statements with a degree of concern and mistrust because they reflect Austria’s egotism. It is the biggest money-lender to Eastern and Central Europe, which together owe it a total of 220 billion euros.
Austrians realize that it will not be easy to move Brussels to pity and persuade it to increase aid. In their battle for aid to Eastern Europeans that will help their banks, they are using a very effective political argument – the Russian card. Chairman of the Austrian Chamber of Commerce Christoph Leitl said: “We should save a weak child. If we don’t do it, Russia will. This child is a subject of rivalry between the two families.” This card is bound to win.
On Monday, February 16, EU Industry Commissioner Gunter Verheugen arrived in Kiev to meet with Ukrainian leaders and discuss what Brussels could do to save the Ukrainian economy from total collapse. However, the EU cannot quite work out whether it is better to deal with President Viktor Yushchenko or Prime Minister Yulia Tymoshenko.
Without U.S. and EU help, Eastern Europe will face dire consequences. This is now recognized by American National Intelligence. DNI Director Dennis Blair told senators that global economic turmoil and the instability it could ignite had outpaced terrorism as the most urgent threat facing the United States. This threat is primarily emanating from Central and Eastern Europe.
The opinions expressed in this article are the author’s and do not necessarily represent those of RIA Novosti.