The Commission presented a Recovery Plan based on short-term measures to boost demand, save jobs and help restore confidence, and also on "smart investment" to yield higher growth and sustainable prosperity in the longer-term.
The Plan calls for a timely, targeted and temporary fiscal stimulus in 2009-2010 of 200bn, or 1.5% of EU GDP, with every Member State taking major measures good for its own citizens and good for the rest of Europe.
"If Europe acts decisively to implement this Recovery Plan, we can get back on a path of sustainable growth and pay back short-term government borrowing. If we do not act now, we risk a vicious recessionary cycle of falling purchasing power and tax revenues, rising unemployment and ever wider budget deficits", warned president Barroso. [extract]
Full reference: COM(2008) 800 final 26.11.2008