New member states need help from the European Commission in order to support lending

European Parliament Sabin Cutaş said that there is a need for additional aid from the European Commission in order to reinvigorate lending in the new European member states. In a press release sent to our editors, Mr. Cutaş, member of the Commission for Economic and Monetary Affairs of the European parliament, said: "In spite of the positive signs concerning the recovery of the European economy, the crisis we are going through is still making its presence felt harshly. The fact that Germany and France exited the recession in the second quarter is a positive factor, but it remains to see how powerful this ascending trend is. We can"t neglect the numerous indicators which illustrate the overall pullback of the European economy and the pessimistic prognosis concerning the new member states".

Mr. Cutaş warned that lending has reached a record low in the Euro zone since 1991 and has sunk to unprecedented levels in some of the Eastern countries, such as Romania. "Concrete actions are needed to support lending in the new member states, which found themselves severely lacking liquidity when the banks retreated to their home markets. In this respect, the adoption of the European Instrument for Microfinancing, Employment and Social Inclusion can be a first positive signal, but one that is not enough", Sabin Cutaş added.

Cutaş he also addressed a written inquiry to the European Commission concerning any additional measures that it intends to take to remedy the issue of liquidity in the European Union.