EU proposes stimulus plan worth 200 bn euros: Source

BRUSSELS: The European Commission proposed on Wednesday a sweeping stimulus package worth 200 billion euros (259 billion dollars), EU sources said.

The sum, the equivalent of 1.5 per cent of the European Union's gross domestic product, was more than the 130 billion euros that commission chief Jose Manuel Barroso had said previously that he was looking for.

The package, due to be published later on Wednesday, is to be made up of plans to lift government spending and ease some taxes across Europe in the hope of snapping the economy out of recession, according to draft proposals.

The European Commmission is to submit the proposals to EU heads of state and government at their December 11-12 summit in Brussels and asked finance ministers to ensure that it is followed up afterwards.