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In Spain, where the growth has been the most explosive, the foreign population rose to 5.2 million last year out of a total of 45 million people from 750,000 in 1999, according to the National Statistics Institute. Ireland’s population, now 4.1 million, was also transformed, with the percentage of foreign-born residents rising to 11 percent in 2006 from 7 percent in 2002.

Alcalá, a Madrid bedroom community and the birthplace of Miguel de Cervantes, is home to so many Romanian immigrants — 20,000 by some estimates — that Romania’s president, Traian Basescu, campaigned here for parliamentary elections last fall.

But signs of the reverse migration of Romanians are already evident. “Slowly, slowly, they’re disappearing,” said Gheorghe Gainar, the president of a Romanian cultural association in Alcalá. “When you look for them, you don’t find them. Sometimes you ask a relative, and they say they’ve gone back.”

The reverse exodus from more prosperous countries in Western Europe is likely to add to the economic pressures already buffeting Central and Eastern Europe, where migrants from developing countries are in turn being encouraged to leave. The Czech government announced in February that it would pay 500 euros, or about $660, and provide one-way plane tickets to each foreigner who has lost his job and wants to go home. And in Bucharest, Romania’s capital, workers from China have been camped out in freezing weather in front of the Chinese Embassy for two months, essentially stranded after their construction jobs disappeared.

Like the Czech Republic, Spain is offering financial incentives to leave. A new program aimed at legal immigrants from South America allows them to take their unemployment payments in a lump sum if they agree to leave and not return for at least three years. The Spanish government says only around 3,000 people have taken advantage of the plan, but many others are leaving of their own accord.

Airlines in Spain are offering deals on one-way tickets to Latin America, and they say demand has increased significantly. Every day, Barajas airport in Madrid is the setting for emotional departures, as families send their jobless loved ones back home.

If the aid proves to be linked, Ms Kroes said, it is illegal under EU rules and should be paid back.

Last month, the French auto bail-out plan sparked a protectionism row after Mr Sarkozy suggested on TV that the money should not be used to rescue French-owned factories in Eastern Europe.

The drop in trade will hurt investment and job creation, the bank said. It expects between 16 million and 17 million non-farm jobs to disappear this year, but said the key to avoiding instability was an effective social welfare system.

According to the latest World Bank global forecasts, published in December, the world economy is set to expand at a weak annual rate of 0.9% in 2009, with a 0.1% contraction in developed economies offset by growth in developing countries of 4.5%. A Chinese government think tank this month forecast first-quarter growth would slow to 6.5%, from a 6.8% pace in the fourth quarter last year.

Sarkozy has focused on a €27bn stimulus plan through public and private investment instead of boosting consumers' pockets with major tax-cuts or higher welfare spending. He argues that without investment leading to job creation, France, with an already weak private sector and stuttering economy, will not be able to recover as fast other countries.

After the last general strike in January, Sarkozy moved to defuse tension by introducing certain tax cuts and welfare payments for the poorest families. Unions said it was not enough, but the president's advisers this week said there would be no more immediate measures. "Sarkozy says there's no money for the public sector, that state coffers are dry, then he miraculously finds money to bail out the car industry," said Olivier Langillier, a nurse at the Paris march.

Lieberman insistently refused to rule in, or rule out, Palestinian statehood alongside Israel as the essence of a permanent accord, but emphatically endorsed Netanyahu's declared desire not to rule over a single Palestinian.

The foreign minister spoke as US Secretary of State Hillary Clinton warned Israel on Thursday that it risks losing Arab support for combating threats from Iran if it rejects peace negotiations with the Palestinians. Clinton said Arab nations had conditioned helping Israel counter Iran on Jerusalem's commitment to the peace process.

The fact was, said the Israel Beiteinu leader, that the Palestinian issue was "deadlocked" despite the best efforts of a series of dovish Israeli governments. "Israel has proved its good intentions, our desire for peace," he said. The path forward, he said, lay in ensuring security for Israel, an improved economy for the Palestinians, and stability for both. "Economy, security, stability," he repeated. "It's impossible to artificially impose any political solution. It will fail, for sure. You cannot start any peace process from nothing. You must create the right situation, the right focus, the right conditions."

Equally emphatically, he said no peace proposal that so much as entertained the notion of a "right of return" to Israel for Palestinian refugees could serve as a basis for negotiation. "It cannot be on the table. I'm not ready to even discuss the 'right of return' of even one refugee," he said. But he also made clear that Palestinian recognition of Israel as a Jewish state was not a precondition for progress. "You know, we don't want to torpedo the process," he said. "But somebody who really wants a solution, somebody who really desires a real peace and a real agreement, must realize that this would be impossible to achieve without recognizing Israel as a Jewish state."

Lieberman said the new government would have no dealings with Hamas, which needed to be "suffocated," and that the international community also had to maintain the long-standing Quartet preconditions for dealing with the Islamist group.

The real reason for the deadlock with the Palestinians, said Lieberman, "is not occupation, not settlements and not settlers. This conflict is really a very deep conflict. It started like other national conflicts. [But] today it's a more religious conflict. Today you have the influence of some nonrational players, like al-Qaida."

And the biggest obstacle to any comprehensive solution, he said, "is not Israel. It is not the Palestinians. It's the Iranians."

Lieberman said the prime responsibility for thwarting Iran's march to a nuclear capability lay with the international community, not Israel, and especially the five permanent members of the Security Council. He was confident that stringent economic sanctions could yet achieve the desired result, and said he did not even "want to think about the consequences of a crazy nuclear arms race in the region."

He said it would be "impossible to resolve any problem in our region without resolving the Iranian problem." This, he said, related to Lebanon, Syria and problems with Islamic extremist terror in Egypt, the Gaza Strip and Iraq.

Nonetheless, Lieberman stressed that Israel did not regard stopping Iran as a precondition for Israeli efforts to make progress with the Palestinians. Quite the reverse, he said. "No, we must start with the Palestinian issues because it's our interest to resolve this problem. But there should be no illusions. To achieve an agreement, to achieve an end of conflict, with no more bloodshed, no more terror, no more claims - that's impossible until Iran [is addressed]."

Noting what he called Syria's deepening ties with Iran, Lieberman said he saw no point whatsoever in resuming the indirect talks with Damascus conducted by the last government. "We don't see any good will from the Syrian side," he said. "Only the threats, like 'If you're not ready to talk, we'll retake the Golan by military action...'"

SPIEGEL: Only 13 percent of Germany's stimulus funds are slated for environmental measures. There is little evidence here of the "crisis as opportunity" you repeatedly mention. Gabriel: That puts us in fourth place worldwide, which isn't bad. If you added the money other countries earmark for renewable energy in their national budgets, which goes through the cost of electricity in Germany, we would be even higher up in the ranking, perhaps even at the top.

SPIEGEL: At least that would have deserved the name environmental premium. Gabriel: But, as environment minister, I am very interested in a thriving German automobile industry, because I can only pay for the rising costs of environmental protection at home and abroad if there are people in Germany with jobs and who pay taxes. The increase in expenditures for environmental and climate protection in the federal budget from €875 million ($1.14 billion) under a Green environment minister to €3.4 billion ($4.4 billion) today would not work without the economic success of German industry.

SPIEGEL: And what happens to your own credibility, when you reward people for buying cars by paying a so-called environmental premium that makes no environmental sense? Gabriel: I still call it the scrapping premium, because the main goal is to stabilize auto sales. But the project clearly has an economic impact, because new vehicles emit less CO2 and pollutants per kilometer driven than old ones. SPIEGEL: But the production of new car consumes enormous resources. Gabriel: One could take that argument a step further and say: It would be best for the environment if we stopped buying or producing any new products. That would be the way to save the most energy and CO2. The next thing you'll ask me is why the government didn't give people €2,500 ($3,250) to buy tickets for public transportation.

The environmental industry, with its new technologies, is the biggest market worldwide. We must retain our leading position, because other countries, like the United States, have started to compete with us.

SPIEGEL: US President Barack Obama is depriving the Germans of their leadership role in climate protection?

Gabriel: No, but his economic stimulus programs are good, and he introduced an overdue change of direction in climate policy. But as far as concrete reduction targets are concerned, his current proposals are still not sufficient. America remains well removed from the European targets and the necessary international targets in climate protection. Many in politics are so pleased about the new American administration that they want to be nothing but nice to the United States. But in doing so, we fail to recognize that the American president, no matter who he is, will always strongly champion American interests.

SPIEGEL: Obama has offered to reduce American CO2 emissions to 1990 levels by 2020. Gabriel: But that is still far from enough. International climate scientists believe it is vital that we reduce CO2 emissions by 2020 to a level 25 to 40 percent lower than in 1990. And the developing and emerging nations expect serious efforts on the part of the industrialized nations. The Americans must also show some movement if the December climate summit in Copenhagen is to be a success. Otherwise, many will hide behind the United States. If that happens, our efforts will fall far short of what is needed to stop climate change and its devastating consequences. We must now discuss this openly worldwide.

Vague low-carbon language and climate change negotiations in Copenhagen in December were relegated to two paragraphs at the communique's end.

Some critics also pointed out that the summit failed to produce a co-ordinated plan to purge the global banking system of billions of dollars of toxic assets, and suggested that regulation of the financial industry should have gone further.

Brown said that the existing agreed fiscal stimulus will amount to $5tn by 2010, and the measures will raise world output by 4% by the end of next year.

The prime minister also won agreement from other G20 world leaders that the International Monetary Fund will monitor the existing stimulus,

Overall, the resources of the IMF will be trebled from $250bn to $700bn, following the lifting by the US of years of opposition. In a sign of the shift in world power, China agreed to provide $40bn of the new loans given to the IMF, with more to come from Saudi Arabia.

At the centre of the deal was a six-point plan:• Reform of the global banking system, with controls on hedge funds, better accounting standards, tighter rules for credit rating agencies, and immediate naming-and-shaming of tax havens that fail to share information.• A global common approach to dealing with toxic assets that impair the ability of banks to lend.• A $1.1tn package to supplement the $5tn stimulus to the global economy by individual countries. The $1.1tn will allow the IMF, the World Bank and others to increase lending to vulnerable countries. There will be a tenfold increase to $250bn in the IMF's facility allowing members to borrow from other countries' foreign currency reserves.• More power for leading developing countries within the IMF and World Bank, to end the stranglehold of the US and Europe on their top jobs.• $200bn of trade finance over two years to help reverse the steepest decline in world trade since 1945, with cash from a range of public and private sources.• A pledge that the fiscal stimulus, including the sale of gold by the IMF due to raise $6bn, will give help to the poorest nations and create green jobs.

Nicolas Sarkozy said the summit meant that the era of secrecy by banks was over; "great progress" had been made, he said, and the page had been turned on the economic model which had dominated since Bretton Woods in 1944 created the world's institutional framework."Since Bretton Woods, the world has been living on a financial model, the Anglo-Saxon model. It's not my place to criticise it, it has its advantages [but] clearly today a page has been turned," he said.

The summit's biggest loser may have been the fight against climate change. Diplomatic sources said China led the opposition to green language in the final communique. David Norman, the WWF campaigns director, claimed that the summit had been "a huge missed opportunity".

Local giants Lockheed Martin and General Dynamics also run substantial government-support operations and would see some weapons projects cut, while other programs would receive budget increases.

In particular, the proposed budget would sharply reduce the number of contractors who help the Pentagon oversee and manage its vast weapons-buying apparatus following a string of reports chronicling cost overruns and other problems.

A CACI executive said the company is waiting for further details before commenting. The Arlington company has 12,300 employees, half of whom are in the D.C. region. Ninety-five percent of its $2.4 billion in revenue last year came from federal contracts for technical services and information technology and contracting oversight for the Army and Navy, as well as such Pentagon offices as the Defense Advanced Research Projects Agency and the Missile Defense Agency.

Overall, the budget Gates proposed calls for major cuts to the weapons programs of some of the largest contractors.

One of the hardest-hit defense firms was Boeing. The Chicago company's $150 billion Future Combat Systems, a family of Army vehicles linked by high-tech communications, came under criticism from Gates for being costly and plagued by development problems. He proposed canceling the $87 billion vehicle part of the system -- a move that would hurt Boeing, SAIC and their subcontractors, BAE and General Dynamics.

Gates also proposed canceling some of Boeing's missile defense programs, including one to equip a modified 747 aircraft with a laser that can shoot down missiles soon after they're launched, saying the program "has significant affordability and technology problems and the program's proposed operational role is highly questionable."

Boeing would also be hurt because it makes one-third of the F-22 fighter jet and the Pentagon plans to stop ordering additional aircraft. Gates would also cancel the Air Force's program to build a new search-and-rescue helicopter, which had been awarded to Boeing. And it would not order more of Boeing's C-17 cargo planes. Boeing could also see a military satellite program, known as TSAT, end.

Lockheed Martin, of Bethesda, the biggest defense contractor in the world, also took hits on several of its major programs.

Gates said he would kill the company's bid to build the presidential helicopter, known as the VH-71, citing the fact that the program is six years late and has gone from initial estimates of $6 billion to $13 billion.

Lockheed was also hit by the move to not order more F-22 fighter jets. Perhaps hoping for support in Congress, the company has taken out newspaper ads explaining how its F-22 supports roughly 25,000 jobs around the country.

But the Pentagon proposed ordering more of Lockheed's F-35 known as the Joint Strike Fighter, and it would increase from two to three the number of littoral combat ships being built by Lockheed and General Dynamics to patrol near enemy coastlines.