European Union (EU) leaders on Thursday vowed to take measures to stimulate a sharply slowing economy and help struggling industry as recession looms in the wake of the financial crisis.
"Outside the financial sector, the European Council underlines its determination to take the necessary steps to react to the slowdown in demand and the contraction in investment, and in particular to support European industry," leaders from all 27 EU member states said in conclusions after a two-day summit in Brussels.
The financial crisis, which has been hitting Europe hard in recent weeks, is hurting the real economy by dampening private consumption and holding back investment, the two engines that propel EU economic growth.
Several EU member states including France and Ireland have already been plunged into recession due to the financial crisis, but the same risk is now looming over the whole of Europe.
"We do see the economic crisis which is coming," French President Nicolas Sarkozy, whose country holds the EU rotating presidency, told reporters after the summit, which focused on a joint response to the financial crisis.
Sarkozy said French and EU officials would come up with precise ideas in the coming months, calling also for a joint response to the economic crisis.
"If we had a coordinated response to the financial crisis in Europe, should not we have a coordinated response to the economic crisis in Europe?" he asked.
Sarkozy said European car makers are struggling with falling sales due to an economic slowdown and stricter EU pollution rules.
He urged EU states to follow the U.S. suit in providing much-needed capital to European car makers, which have asked for a40-billion-euro (54-billion-dollar) bailout fund.
Source: Xinhua
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