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India's economy has been slowing down, as has the economy in Europe. And the European Union has unveiled a plan that it says will provide a sharp boost to the European economy if all 27 member states are willing to coordinate their national fiscal policies. Teri Schultz reports from Brussels.
TERI SCHULTZ: European Commission President Jose Manuel Barroso says business as usual is not an option for European economies, and it's time for them to play as a team when it comes to fixing the financial system.
President JOSE MANUEL BARROSO (European Commission): The full extent of the benefits of individual member states' fiscal measures will only be reaped if they are part of a coordinated European response.
SCHULTZ: For a price of just under $260 billion, or 1.5 percent of EU GDP, Barroso says his two-year plan for higher government spending, tax cuts, and expanded social benefits will leave more money in the hands of consumers and boost demand for products made in EU member states. Europe's largest economy, Germany, is dependent on exports and suffering from a huge drop in demand. But the German government has thus far taken only modest actions on its own and is showing no signs of enthusiasm for Barroso's proposal. That's one of the problems, says economist Daniel Gros. Barroso's commission has no mandate over fiscal policy in member states who don't want to give up any sovereignty over their financial planning.
Dr. DANIEL GROS (Director, Centre for European Policy Studies): The countries should really take Europe into account, and all economists agree that they should do it. But the effects on the ground will be very limited.
SCHULTZ: So without voluntary adherence to Barroso's recommendations or formal adoption by all 27 heads of state at next month's summit, both of with Gros considers unlikely, the package Barroso calls big and bold may well be doomed to remain just a wish list. For NPR News, I'm Teri Schultz in Brussels. Transcript provided by NPR, Copyright NPR.