DARLING: USA AND EUROPE MUST COOPERATE.

CHANCELLOR Alastair Darling is urging America and Europe to reject protectionism as a way out of the economic crisis.

And he issued a new plea for EU countries and the US to work together on solving "the most severe downturn we have seen in recent times".

Mr Darling was speaking yesterday on the way in to talks with fellow EU finance ministers in Brussels and amid fears in the EU that national responses to the crisis will throw up trade barriers.

He said countries across the world were facing the same problems and the same issues - how to support businesses, families and trade and kick-start lending.

"It is entirely possible and desirable that countries support their own economies - France and Germany are supporting their car industries and so are we in Britain," he said.

"Provided you do these things together and ensure you don't get protectionist moves, then stimulating your economy and helping industries that may be going through difficulties is what you expect at this time.

"But in the US and in Europe... we can't have protectionism. Each country in the world needs its neighbours more than ever, whether in relation to trade or getting credit going."

The Chancellor said his top priority for the UK was to get lending moving again and help businesses.

But he insisted the key to triggering recovery was to get lending flowing - and banishing protectionism.

He added: "What would be disastrous would be to return to the protectionism of the 1930s, which held back recovery for many, many years."

CAPTION(S):

Alistair Darling ha called for cool heads in the response to the deepening economic crisis