TOPWRAP 2-EU keeps lid on spending; US aids auto part makers

* EU resists US calls for more spending, pledges more for IMF

* Obama pledges $5 billion in aid to auto parts makers

* Dollar worst hit since 1985 by doubts over Fed action

* U.N. chief fears crisis sapping resolve on aid for poor (For more on the financial crisis, click [nCRISIS])

By Darren Ennis and David Lawder

BRUSSELS/WASHINGTON, March 20 (Reuters) - The European Union resisted pressure to pump more cash into its recession-hit economies just as Washington added $5 billion more to its soaring rescue bill, throwing a lifeline to stricken auto parts makers.

EU leaders are expected, however, to agree on Friday to contribute at least $75 billion to the International Monetary Fund to boost its firepower in the face of the worst financial crisis since the 1930s.

The IMF warned the world economy could shrink as much as 1 percent this year, in its first contraction since World War Two. It said more swift action to purge banks of toxic assets was necessary to make a gradual recovery next year possible. [ID:nN19469379]

The European leaders also backed a proposal to double to 50 billion euros ($67.5 billion) an EU crisis fund for eastern European nations outside the euro currency zone.