It is curious (but perhaps easy to explain for a psychologist) how some people who grew up in communism are so ready to embrace the most extreme forms of capitalism, without (or because of) knowing capitalism very well.

Germans are not opposed to economic stimulus, but I don't think they believe it's all about whose numbers are bigger.

For instance, the "conservative, free market dogma" German government recently started a program where anyone who junks a 9+ y.o. car and buys a new one gets 2,500 Euro (Verschrottungsprämie). That did wonders for getting the new car market into gear again. And it is true stimulus spending because most of the spending is in fact done by private entities... the government just stimulates it.

I'm not sure either the EU or the US should be doing things differently, I think they're doing things generally right. But they should do more about examining of their banking systems and figuring out exactly how far in the hole the banks are (or not). The uncertainty is likely worse than the worst possible reality.

In general, the first order of business is restoring confidence in the economy. That means not panicking and not spreading hysteria. This time is probably crucial in determining whether we're in for a prolonged recession/depression or not, and it mostly depends on people's perception of the situation.

Also keep in mind that a lot of the stimulus spending in the US goes towards unemployment benefits, which in Europe are already built in.

Also, the Czech PM is not some kind of extreme right winger. While his party is rightist in the Czech political spectrum, it's hardly to the right of the US Democratic Party. The European objections to massive stimulus spending are far more practical than ideological.

Sure, the Europeans will be telling Americans what to do on Kyoto, just like the Americans will be telling Europeans what to do on Iraq or Afghanistan. And there will be plenty of disagreement because everyone wants to follow their own interests. Surprise!

Now the US is telling Europe how to fix the economic crisis that the US caused. Why should Europeans listen, exactly?

Americans feel that everyone should pitch in, which is understandable. Europeans feel that they shouldn't pay for damage caused by runaway US financial markets, which is also understandable. Who is right and who is wrong? Everyone and no one.