On the request of Guy Verhofstadt, leader of the Alliance of Liberals and Democrats in the European Parliament, EP group leaders today accepted to include a debate on the December part session in Strasbourg of the particular economic and financial difficulties being experienced in the Central and Eastern EU Member States who are outside the protective umbrella of the euro-zone.

Verhofstadt was recently on a visit to the Baltic States to outline his proposals for the region which has been especially badly hit by the crisis.
"The crisis that hit the EU requires a European response to stimulate the economy and stabilize monetary policy. Otherwise we will face stagnation throughout the Continent, with all its political repercussions. This is a matter of solidarity as well as self-interest in this world of interdependent economies."

Verhofstadt is proposing a number of specific measures for that purpose:
The European Central Bank should temporarily provide liquidity to these countries' local banks. This support—currently available only to euro-zone banks—would help fuel investments and consumption.

The European Investment Bank should adopt a specific lending mechanism for small and medium-size enterprises in order to stabilize lending in these countries and to support the economy.

The EU should make some of its subsidy programs, such as the European Social Fund, the European Cohesion Fund and the European Globalization Adjustment Fund, more accessible by temporarily lowering the national co-financing requirement.

The European Globalization Adjustment Fund should be widened in scope and its procedures simplified so that those who have been left jobless as a result of the world financial crisis are better able to access this money.
East and Central European governments may want to explore the possibility of introducing the euro as a joint legal tender. The euro would function alongside the national currencies for all transactions and thus enhance the credibility of the exchange rate arrangement.

Road, railway and energy networks in the East are generally still behind those in the old member states. The EU must enhance its funding mechanisms to fill these development gaps. A combined EIB-EU "Infrastructure Trust Fund" could well serve this purpose. Such a fund would target investments in cross-border infrastructure.