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BRUSSELS (Reuters) - European Union leaders rejected protectionism on Sunday as a way of combating the global economic crisis to prevent a new "iron curtain" dividing the 27-nation bloc into rich and poor halves.

At a summit called to bridge differences over how to handle the deepening financial crisis, the leaders were expected to approve a draft statement rejecting protectionist measures that could undermine the EU' single market and solidarity.

 

They were not expected to agree on a regional aid package to the whole of central and eastern Europe after link to website opposition from German Chancellor Angela Merkel.

 

Warning the recession could cause new divisions in Europe two decades after the collapse of communist rule in the east, Hungarian Prime Minister Ferenc Gyurcsany said: "We should not allow a new 'Iron Curtain' to .....

Word Count: 265 | Submitted By: david


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