The European Commission has approved a package aimed at giving the sagging European economy a sharp, temporary boost with a 200 billion euro spending plan across the 27-nation bloc.
The EU believes its a potent package in the face of growing recession.
European Commission President Jose Manuel Barroso said: “We believe that a stimulus package of 1.5% is just about right , less than 1% in our opinion would not be enough. Our proposal is a measured response because it is a realistic and can have positive knock on effects.”
The move is a bid to bridge policy differences among EU countries , with some concerned that a dash for growth will inflate national deficits at precisely the wrong time.
The EU figures compares with the U.S. Federal Reserve’s plan announced on Tuesday to boost consumer spending with 160 billion consumer finance facility.