REUTERS: Lithuania calls for increase in EU's crisis fund
BRUSSELS, Feb 25 (Reuters) - Lithuanian Prime Minister Andrius Kubilius urged the European Union on Wednesday to do more to help its poorer members in central and Eastern Europe hit by the global financial crisis.
Kubilius said in a statement that the EU should increase and widen the application of its fund for member states outside the euro zone experiencing balance of payment problems.
Hungary and Latvia have received loans from the fund, which the bloc already increased to 25 billion euros ($32 billion) from 12 billion euros late last year.
"The so-called medium term financial assistance facility should be extended and used not just for solving crisis situations but rather for preventing them. The European Commission should be invited to consider such possibilities," Kubilius said.
His comments were distributed by email as a response to the Commission's assessment of Lithuania's mid-term fiscal plans.
Kubilius said he had seen proposals from Austria on increasing help for central and eastern Europe. Diplomats say Austria has lobbied hard to a rescue plan for banks in central and eastern Europe, but has for far gain little support.
The Commission on Wednesday gave a positive assessment of Lithuania' fiscal plans, as well as those of Portugal and Italy, although it said their planned budget deficits could be overshot due to uncertain economic conditions.
