Leaders reject bailout deal for eastern Europe at summit

EU LEADERS yesterday rejected a new multi-billion euro pound bailout for eastern Europe, suggesting that additional aid be given to struggling nations only on a case-by-case basis.

The hardline stance came as Hungarian prime minister Ferenc Gyurcsany warned that the global credit crunch was creating a widening economic chasm in the 27-nation bloc.

Pointing out that the credit crunch was hitting eastern members hardest, Mr Gyurcsany had called for an EU fund of up to €190bn to help restore trust and solvency in those nations.