The European Commission this afternoon challenged Washington politicians to show "statesmanship" and reverse yesterday's rejection of plans to pour 700 billion dollars into the economy.
The European Commission this afternoon challenged Washington politicians to show "statesmanship" and reverse yesterday's rejection of plans to pour 700 billion dollars into the economy.
The current global economic turmoil had started in the US and it was now up to America to demonstrate responsibility for helping restore stability, declared Commission chief spokesman Johannes Laitenberger.
The outspoken challenge came as a growing pile of European bank rescue deal were piling up for approval by the Commission's competition department, which must vet state aid plans, mergers and rescue packages for business.
The Lloyds TSB merger with HBOS is already in the in-tray, alongside today's formal notification from London of the Bradford and Bingley rescue plan, the Fortis and Dexia bail-outs in Belgium, and the bail-out of Germany's Hypo Real Estate.
The Fortis and Dexia bail-outs in Belgium, and the Irish government's plan to guarantee the deposits of six Irish banks, will also have to be checked and cleared by Brussels.
The Commission insisted it would fast-track vetting procedures to help steady markets, but insisted there was no question of waiving the approval rules in response to the economic crisis.
Meanwhile Washington was urged to play its part too: "The vote yesterday by the House of Representatives has been a disappointment" said Mr Laitenberger, in an uncharacteristically blunt statement from the EU's executive arm.
Clearly reflecting the views of EU Commission President Jose Manuel Barroso, he went on: "The turmoil that we are facing originated in the United States.
"It has become a global problem, and the US has a special responsibility in this situation. So what the Commission says is that we expect that the decision will go through soon, and that the US must take its responsibility in this situation, and must show statesmanship for the sake of their own country and for the sake of the world."
Mr Laitenberger said Brussels supported a call by French President Nicolas Sarkozy, for an international conference before the end of the year to discuss the economic crisis, adding: "European authorities are assuming their responsibilities and engaging (with banks and governments)and calling for international cooperation.
"Public authorities can live up to the task of preserving financial stability and protecting savings where different European Union countries are concerned."
Jonathan Todd, spokesman for EU Competition Commissioner Neelie Kroes, said formal notification had been received from London today about the Bradford & Bingley bail-out and from Berlin about Hypo Real Estate.
The two dossiers join the growing pile, with the UK government's long-term restructuring plans for Northern Rock still to be cleared.
But Mr Todd pledged faster responses due to current circumstances and said Brussels would be looking "as a matter of urgency" at the Irish government's two-year deposits guarantee proposal for six Irish banks, to see if the plan amounted to state aid requiring the nod from the Commission.
He emphasised: "There is no suggestion that we should suspend the application of the state aid rules. Over the past few months they have proved to be a very good framework for ensuring co-ordinated responses to these problems.
"They are part of the solution, rather than the problem.
"They allow us to act very quickly in the case of rescue measures, and when it comes to restructuring banks in the longer term to ensure their future viability and stability, again they provide us with the basic criteria to apply.
"So there's no reason at all to suspend application of the state aid rules, which guarantee a level playing field".
