European Union leaders on Thursday insisted they were spending enough to dig out of the recession, with the EU presidency saying an additional stimulus package «is a deadly idea», according to AP. The comment from Czech Prime Minister Mirek Topolanek, who is hosting a two-day EU summit, came in the wake of the announcement Wednesday that the U.S. Federal Reserve will launch a bold $1.2 trillion effort to lower rates on mortgages and other consumer debt. While that is aimed at increasing the amount of money in the economy, not the amount of government spending, it underlines the contrast between the European stance and a more aggressive U.S. approach. European governments resisted a push for more spending from the U.S. at a summit of Group of 20 finance ministers last week, and Thursday's remarks underlined their position ahead of an April 2 summit of G-20 national leaders in London. The EU has already agreed on ¤200 billion ($270 billion) government spending package over two years, but labor and socialist leaders and even Nobel laureate Paul Krugman claim a lot more is needed to weather the storm.
