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EU rejects further stimulus plan
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"The huge deficit of the United States is a problem because it takes away resources for credit markets all over the world," said Reinfeldt. Sweden will be the next EU presidency since July.

 

Britain's Prime Minister Gordon Brown (L) greets German Chancellor Angela Merkel during the first day meeting of EU spring summit in Brussels, capital of Belgium, March 19, 2009. [Wu Wei/Xinhua] 



Reinfeldt echoed worries of Germany and France, which feared that over-expansion of public debt would jeopardize world economic and financial stability.

German Chancellor Angela Merkel and French President Nicolas Sarkozy urged Tuesday in a joint letter countries with excessive public debts to pay off their debts as quickly as possible.

Both of them are opposed to any more public spending in stimulating the economy, hit hard by the global financial crisis.

French President Nicolas Sarkozy shakes hands wiht Hungrian Primje Minsiter Ferenc Gyurcsány during the first day meeting of EU spring summit in Brussels, capital of Belgium March 19, 2009. [Wu Wei/Xinhua] 



But European labor and socialist leaders joined the United States to push European governments for more effort to counter the crisis.

"There is a broad agreement that we must do more than is in the package now," Poul Nyrup Rasmussen, leader of the European Socialists, said at a meeting with EU leaders.

"If we don't do more we risk having 25 million unemployed people at the beginning of next year," he added.  

(Xinhua News Agency March 20, 2009)

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