topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2117.66 -0.08
DAX 6323.19 -0.26
IBEX 30 6401.2 -2.17
CAC 40 3042.97 -0.16
FTSE 100 5356.34 0.09
AEX 292.76 0.00
DJIA 12454.83 -0.60
Nasdaq 2837.53 -0.07
FTSE MIB 13057.26 -0.74
TSX Composite 11566.15 -0.09
ASX 4155.9 0.87
Hang seng 18957.56 0.83
Straits Times 2800.81 0.49
ISEQ 20 501.76 0.16
You are here: Home News European News EU mulls 200-billion-euro stimulus package
Enlarge font Decrease font Text size


02/12/2008EU mulls 200-billion-euro stimulus package

With the specter of recession looming large, the European Commission called for a sharp boost to public investment and social spending across Europe.

Brussels -- European finance ministers on Monday grappled with how to coordinate their efforts to ward of recession, with Germany sounding reservations about EU plans for a 200 billion euros stimulus package.

"All member states are convinced of the need to react in the short term to this difficult economic situation," said EU Economic Affairs Commissioner Joaquin Almunia.

With the specter of recession looming large, the European Commission called last week for a sharp boost to public investment and social spending across Europe while giving embattled consumers a range of tax breaks.

Finance ministers from the 15 nations sharing the euro were meeting in Brussels to give their first reactions to the proposed plan, which their counterparts from the full 27-nation will discuss on Tuesday.

While the commission's overall proposed packaged would be worth about 200 billion euros (253 billion dollars) or 1.5 percent of the 27-nation European Union's output, Germany and some other countries are uneasy about shoveling so much public money into the economy.

The European Commission aims to secure backing for the package from EU heads of state and government when they meet in Brussels at a Dec. 11-12 summit.

Germany, Europe's biggest economy, prefers to stick to its own plans for reviving its economy.

German Finance Minister Peer Steinbrueck, who has criticized the commission proposals as "ineffective populist measures," insisted that each EU country should be able to tailor its response to the crisis without having plans imposed from Brussels.

"We shouldn't copy what all other countries are doing, but we must coordinate among us," he said as he arrived for the talks in Brussels.

Germany, one of the few EU countries heading into the current downturn with strong public finances, has resisted pressure to contribute more than other countries to the economic stimulus effort.

Instead Berlin has stuck to its plans to support the German economy -- Europe's largest -- with a package worth 31 billion euros over two years.

Dutch Finance Minister Wouter Bos said that how much money countries commit to reviving growth should be up to them and those that have managed their budgets prudently should not be asked to do more than those that have not.

"I don't think that a consequence of the commission proposal should be that the countries that have behaved well over the past years are now obliged to do more," he said.

Some economists also have their doubts about the EU plan, noting that 130 billion euros would come from national plans in Germany, France, Britain and Italy and the rest from EU funding.

AFP



0 reactions to this article

0 reactions to this article

Discussion Forums

Relocating to the Netherlands

Taxation on Rental Apartments!

Americans in the Netherlands

reporting birth abroad

Housing in the Netherlands

Taxation on Rental Appartments?

Discuss Dutch Culture

High-quality fake passports, driver's licenses, ID

English in the Netherlands

Moved to Hengelo

participate in the forums

Inside Expatica
Setting up home in the Netherlands

Setting up home in the Netherlands

A guide to telephone, internet and television along with utility services water, electricity and gas in the Netherlands.

Dutch immigration and residency regulations

Dutch immigration and residency regulations

Lost in the Dutch immigration system? Look no further than this guide compiled for our Survival Guide 2012.

A brief introduction to the Netherlands

A brief introduction to the Netherlands

Expatica offers a whistle-stop tour of life in the modern Netherlands.

Giving birth in the Netherlands

Giving birth in the Netherlands

The challenges and benefits of the maternity system in the Netherlands and how it differs to other countries.