Zoellick warns of new European split over economy

Zoellick warns of new European split over economy London  - World Bank chief Robert Zoellick has urged the European Union (EU) to lead efforts to increase global support for the ailing economies of central and eastern Europe in order to avoid a new "split" 20 years after the fall of communism.

In an interview published in the London Financial Times Thursday, Zoellick said the World Bank was trying to work with the International Monetary Fund (IMF) and other multilateral institutions to help the region but needed more backing from Brussels.

"It's got to have support from the European governments," he said. "It's 20 years after Europe was united in 1989 - what a tragedy if you allow Europe to split again."

Zoellick's comments followed calls for region-wide international action made recently by Austria, the country with the greatest exposure to eastern Europe, Hungary and some other east European states, said the FT.

On Tuesday, Polish Prime Minister Donald Tusk took the unusual step of saying that his government might defend the zloty if it fell to five against the euro, the paper noted.

It said Zoellick's call for stronger EU-led region-wide action was backed by east European leaders.

Andrius Kubilius, Lithuania's premier, told the FT: "It would be good to see a more coordinated approach from the EU authorities."

Ferenc Gyurcsany, Hungary's leader, urged central and east European government to jointly support Austria's proposals for an EU bank package, said the paper. (dpa)

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