The European Commission will today urge the bloc’s 27 members to unite on a two-year recovery plan to tackle recession, even if it means shattering national deficit targets.
The stimulus policies are expected to range from tax cuts to increased social benefits and further interest rate cuts.
The total scope of the plan will be decided at a Commission meeting later today, with France and Germany pushing for it to be at least one percent of the bloc’s GDP or 130 billion euros.
“We need to use all means at our disposal, whether financial or legislative to make a coordinated effort at a European level as well as a national one. We are 27 countries in very different situations, so we must act in a co-ordinated way,” said EU Commission President Jose Manuel Barroso.
The EU move is a bid to bridge gaps between those states already embarking on national growth plans – like Britain, Germany and France – and those who say they cannot afford such measures.
The struggling car industry can expect increased funding, although this is expected to fall short of the 40 billion euros asked for. The full plan will be debated at a summit in December.