Europe faces new economic 'Iron Curtain'

Hungary’s prime minister warned of a new economic “Iron Curtain” being drawn unless leaders at today’s European Union summit acted to protect the bloc’s weakest members from drowning in the global economic crisis.

Prime Minister Ferenc Gyurcsany said the credit crunch is hitting poorer, eastern member states the hardest. The Hungarian leader called for a special EU fund of up to €190bn to help restore trust and solvency in eastern EU members’ financial markets.