A comprehensive action plan for a coordinated response to the economic crisis
update: 6 July 2009
The recovery plan is the Commission's response to the current financial and economic crisis. It aims to restore consumer and business confidence, restart lending and stimulate investment in the EU's economies, create jobs and help the unemployed back into work. The plan is designed to create a basis for rapid agreement between Member States to get Europe's economy moving again. The European Commission calls on the European Heads of State and Government to adopt the plan at their meeting on 11-12 December 2008.
>> Communication. A European Economic Recovery Plan COM(2008) 800 final. 26 November 2008
Building on the existing framework
The recovery plan sets out action at European level to increase investments in infrastructure and key sectors such as cars, construction and green technologies. Existing funds to help the unemployed and those at risk of losing their jobs will be mobilised. The plan makes full use of the flexibility offered in the revised Stability and Growth Pact. It also continues to implement the medium- and longer-term challenges of structural reforms called for under the Lisbon Strategy for Growth and Jobs needed to raise potential growth.
A coordinated fiscal stimulus
The plan proposes that Member States co-ordinate national budgetary stimulus packages to optimise their impact and avoid negative spill-over effects from one country to another. The total package amounts to around € 200 bn, which represents 1.5 % of the EU's GDP.
This combination of national and EU resources and actions will be vital to boost falling demand, prevent knock-on effects on investments and employment, and protect growth and jobs.
The Commission calls for the budgetary stimulus package to be timely,
targeted, temporary, and coordinated. Secondly, it should use a mix of national
revenue and expenditure instruments. Thirdly, it should be accompanied by
structural reforms to boost demand and help the economy stay resilient.
The EIB response to the economic crisis includes measures to increase its annual level of financing by some €15 billion over for the next two years. The financing will be done via increased loans, equity, guarantees and risk-sharing financing. The Commission also calls on commercial banks to resume their important role to finance investment.