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EU aims to double emergency cash EU aims to double emergency cash
(about 1 hour later)
The EU has said it may double to 50bn euros (£47bn; $68bn) the amount of emergency funding to help member states that need urgent budget support.The EU has said it may double to 50bn euros (£47bn; $68bn) the amount of emergency funding to help member states that need urgent budget support.
European Commission President Jose Manuel Barroso said he was confident the deal would be reached on the final day of a two-day summit in Brussels.European Commission President Jose Manuel Barroso said he was confident the deal would be reached on the final day of a two-day summit in Brussels.
Meanwhile, EU leaders resisted US calls for more government spending to stimulate their crisis-hit economies. EU leaders also tentatively agreed to help boost the International Monetary Fund's resources to $500bn (£344bn).
They said the focus should be on reforming the global financial system. But they resisted US calls to spend even more to revive their economies.
They are also planning to boost the resources of the International Monetary Fund to help countries in trouble. They said they wanted first to gauge the effects of the 200bn-euro ($274bn; £188bn) stimulus package they have been implementing, and that the focus should be on reforming the global financial system.
The Brussels meeting is taking place as the world's biggest economies prepare for the G20 summit in London on 2 April.
Trying to outdo one another with promises will certainly not bring any calm to the situation Angela MerkelGerman Chancellor Union chief urges bigger EU pledgeMardell: Dose of German disciplineEU chokes on cost of rescueEurope's jobs evaporateTrying to outdo one another with promises will certainly not bring any calm to the situation Angela MerkelGerman Chancellor Union chief urges bigger EU pledgeMardell: Dose of German disciplineEU chokes on cost of rescueEurope's jobs evaporate
The Brussels summit, which opened on Thursday, takes place as the world's biggest economies prepare for next month's G20 summit in London.
Mr Barroso said doubling the emergency funding ceiling to 50bn euros would be "a good signal that the EU is ready to show solidarity and support... to the countries that may need it".Mr Barroso said doubling the emergency funding ceiling to 50bn euros would be "a good signal that the EU is ready to show solidarity and support... to the countries that may need it".
The emergency cash is only for member states outside the 16-nation eurozone. The money, which was doubled to 25bn euros in December, is only available to member states outside the 16-nation eurozone.
Hungary and Latvia have already received about 10bn euros (£9bn) to deal with their balance of payments crises. Hungary and Latvia have already received nearly 10bn euros (£9bn) to deal with their balance of payments crises.
Romania is the next member seeking a bail-out, the BBC's Oana Lungescu in Brussels says. Romania is the next member seeking a bail-out and Lithuania is likely to follow suit, the BBC's Oana Lungescu in Brussels says.
Also set to be approved is a "considerable increase" to the IMF, with the EU ready to provide an extra $75bn to $100bn (£52bn-£69bn) in loans. This would help double the IMF's capital to $500bn.
'Deadly idea''Deadly idea'
Separately, the EU leaders ruled out an extra stimulus package, despite calls from Washington for one.Separately, the EU leaders ruled out an extra stimulus package, despite calls from Washington for one.
G20 LONDON SUMMIT World leaders will meet next month in London to discuss measures to tackle the downturn. See class="" href="http://news.bbc.co.uk/2/hi/in_depth/business/2009/g20/default.stm">our in-depth guide to the G20 summit.The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. class="" href="/1/hi/business/7921385.stm">Q&A: G20 Summit class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=6204">Readers' views Mr Topolanek (right) said the EU was unanimous on the stimulus package
"Trying to outdo one another with promises will certainly not bring any calm to the situation," said German Chancellor Angela Merkel, who has led calls for European fiscal restraint."Trying to outdo one another with promises will certainly not bring any calm to the situation," said German Chancellor Angela Merkel, who has led calls for European fiscal restraint.
Czech Prime Minister Mirek Topolanek, whose country is holding the EU's rotating presidency, said the leaders were "unanimous in their views" that they "are going to be prudent" with economy stimulus plans.Czech Prime Minister Mirek Topolanek, whose country is holding the EU's rotating presidency, said the leaders were "unanimous in their views" that they "are going to be prudent" with economy stimulus plans.
He warned that any more deficit spending was "a deadly idea", adding that EU leaders were awaiting the results of the 200bn-euro (£188bn) package agreed in December. He warned that any more deficit spending was "a deadly idea", adding that EU leaders were awaiting the results of the 200bn-euro package for 2009 and 2010 agreed in December.
With output tumbling and millions of jobs at risk across the continent, EU leaders seem to have few fresh ideas to offer and little appetite to throw more public money at the crisis, our correspondent says. The European Commission says that if member states' increases in welfare spending are included, the measures total 400bn euros - equivalent to 3.3% of the bloc's gross domestic product.
EU leaders also approved a plan to spend several more billion euros on upgrading energy and broadband connections. But with output tumbling and millions of jobs at risk, EU leaders seem to have few fresh ideas to offer and little appetite to throw more public money at the crisis, our correspondent says.
This included funds for a controversial gas pipeline project meant to reduce Europe's dependency on Russian energy. G20 LONDON SUMMIT World leaders will meet next month in London to discuss measures to tackle the downturn. See class="" href="http://news.bbc.co.uk/2/hi/in_depth/business/2009/g20/default.stm">our in-depth guide to the G20 summit.The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. class="" href="/1/hi/business/7921385.stm">Q&A: G20 Summit class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=6204">Readers' views
The plan was agreed in response to the gas dispute between Russia and Ukraine in January that led to severe shortages for millions across Eastern Europe. Mr Barroso also said agreement was also reached on projects to be included in a 5bn-euro ($6.9bn; £4.7bn) package of previously unspent EU budget funds, ending a three-month-long dispute over their allocation.
He said most of that money would go on energy interconnectors - part of a plan to avoid any repetition of the winter gas crisis that hit much of Central and Eastern Europe in January.
A row between Russia and Ukraine over gas prices shut down pipelines and highlighted the need to modernise the EU's energy infrastructure.
The controversial Nabucco pipeline project, which would bring gas from Central Asia to Central Europe, bypassing Russia, will receive 200m euros ($274m; £188m). Germany had opposed giving the project public money.
Some of the 5bn euros will also be spent on broadband internet connections. Mr Barroso said Hungary would be among the main beneficiaries.