By CEV Magazine team

Before the twentieth anniversary of the Iron Curtain fall, once again Europe is facing division in East and West, questioning solidarity and unity as some of the key values of the European Union. During an informal meeting, the EU leaders have agreed it was necessary to stick to the principles of common market, financial stability and economy openness. However, within the Union the current economic crisis has raised questions regarding several divisions - old and new members, Eastern and Western countries, as well as the Eurozone members and those who have still not accepted the common currency.

While the European leaders have mainly been trying to find ways for sustaining their national economies, leading world economic newspapers and analysts have observed that the development of the world economic crisis will have the biggest impact on Central and Eastern Europe while the protectionist measures will transform the current situation in Europe into catastrophe.

In its article, titled "Argentina on the Danube?" notable British magazine Economist has pointed out that the crisis similar to the one that has almost destroyed this South American country in 2001 could strike Eastern Europe.

While Slovenia and Slovakia, who have introduced the euro, are in somewhat better position than the new EU members, in Hungary the fall of forint and great indebtedness have jeopardised economic survival of this state. The Baltic States` currencies are tied to the euro but, nevertheless, Latvia has serious financial crisis that has provoked the government fall.

Since the 2008 summer, the Polish zloty has lost almost the half of its value in relation to euro; Hungarian forint has fallen for 30 percent; the Czech koruna for 21 percent; the value of the Romanian lei has been also falling and hampering macroeconomic stability of this country.

In order to prevent financial crash of these countries, the World Bank, European Investment Bank, European Bank for Reconstruction and Development, and International Monetary Fund, with participation of European Central Bank, have promised to help national banks in this region with the amount of 24.6 billion euros.

However, the Hungarian Prime Minister Ferenc Gyurcsany has asked the EU to help the East European countries with the special aid package of 160 to 190 billion euros that is a lot more than the promised amount.

"We should not allow new `iron curtain` to divide Europe in two," said Gyurcsany expressing concern for ever bigger crisis consequences in economy of his country and other states in Middle and East Europe.

However, exactly the organisation of mini-summit of nine new EU members that have preceded the summit of all the member states has made many think it was just one more move towards strengthening the division in old and new Europe.

Suggestion of the Hungarian Prime Minister has been dismissed not only because of the strict stance of the German Chancellor but also thanks to the insisting of the Czech Prime Minister who has strongly opposed.

"I do not think Eastern Europe is a special region; I do not believe several countries within the EU should be singled out. I will support the EU aid for all the countries (the ones that need it), not especially for the Eastern Europe," said Topolanek.

German Chancellor Angela Merkel has pointed out East European countries could not be helped in package since they had not been crisis stricken the same way. According to her, it is necessary to discuss the aid separately, on a case-by-case basis. She has also added it was impossible to compare the Hungarian situation with the one in Slovakia or Slovenia.

Although the Hungarian Prime Minister`s plan has been abandoned, the anger of the once Warsaw pact countries` leaders was not great since before the summit the French President Nicolas Sarkozy had softened his aid plan for the French cars original producers. Sarkozy has abandoned his idea of helping the French car industry in case they did not move factories to cheaper locations, "in the Czech Republic or somewhere else." This has been interpreted as a protectionist measure dividing Europe and hampering principles of the unique market.

Although economic situation in Slovakia is better comparing to Hungary, according to Robert Matejovic, political analyst and founder and editor of the Slovak magazine Dimenzie, this mid European country is only in the first phase of the crisis. In an interview for the CEV magazine Matejovic said that no one in Slovakia could say what could help this country.

"Crucial question in Slovakia is where to place its products. It is obvious now that it has been a great mistake for the small economy, such as the Slovakian one, to place its products exclusively on the German and EU markets. I believe the situation will change since every country in the EU now searches for the market for its products," says Matejovic whose magazine is also distributed in Brussels.

According to him, in certain sense Serbia is in better position than Slovakia.

"Serbia is not the candidate for the EU membership that is a happy occasion. Why? Because it can make business with Russia, China, India and the rest of the world without an obligation to ask Brussels for permission," says Matejovic adding that Serbia should take advantage of the Free Trade Agreement with Russia.

The Editor of Dimenzie maintains that it is necessary to start considering publicly and among experts the ways of making Slovakia economically more independent.

On the other hand, President of the European Commission Jose Manuel Barroso has warned the Union members not to play lonely knights since such a single approach would mean tragedy for Europe.

However, the group of the European Chambers of Economy, Eurochambers, has emphasised that the past EU leaders` summit had not led to any concrete actions.

"This summit was yet another rather unproductive political showpiece, bringing no concrete solutions to the dramatic economic situation and showing a worrying lack of economic co-ordination among member states. We deeply hope that the spring European Council will do better in a couple weeks time," said Secretary General Arnaldo Abruzzini.

Before the spring summit of the EU leaders, according to the January experience, new test for divisions and European solidarity could take place already on March 7th. Until then, Ukraine should pay its debt to Russia in case it does not want it again to cut gas delivery to the European Union along the Ukraine gas pipeline.