EU rejects aid to Eastern Europe

BRUSSELS, March 1 (UPI) -- Eastern and Central European nations crippled by recession won't be able to count on a European Union lifeline at this point, EU leaders made clear Sunday.

EU leaders, meeting in emergency session in Brussels, discussed the financial situation and aired concerns about protectionism before deciding no special funds would be allocated, Radio Netherlands reported.

Hungary had sought a $228 billion EU aid package for Eastern and Central Europe.

German Chancellor Angela Merkel shot down that idea.

"I see a very different situation among eastern countries," she said. "I do not advise going into the debate with massive figures."

The concerns about protectionism were triggered by French President Nicolas Sarkozy's recent announcement that he intended to offer financial incentives to companies that invest only in France.

Hungarian Prime Minister Ferenc Gyurcsany, conjuring the image of the days of Communism, raised the specter of a new "Iron Curtain" created by social unrest provoked by economic crisis, The Daily Telegraph reported.

"We should not allow a new iron curtain to be set up and divide Europe in two parts," he said. "This is the biggest challenge for Europe in 20 years. At the beginning of the '90s we reunified Europe. Now it is another challenge -- whether we can unify Europe in terms of financing and its economy."

Meanwhile, Czech Republic Prime Minister Mirek Topolanek confirmed that U.S. President Barack Obama would travel to Prague April 5 for his first meeting with European Union leaders.