The Commission is proposing €200bn in measures to boost purchasing power and generate growth and jobs. Amongst the measures proposed is a simplification package, notably to speed up its State Aid decision-making.

According to the Plan, the EU's state aid rules offer Member States a wide range of possibilities for providing financial support to companies, regions and workers/the unemployed and to stimulate demand. At the same time these rules guarantee a level playing field, ensuring that state aids are used to support EU objectives such as R&D, innovation, ICT, transport and energy efficiency, and not to unduly distort competition by favouring particular companies or sectors.

The Commission will put in place a simplification package, notably to speed up its State Aid decision-making.

In addition, it is being proposed to reduce VAT rates for green products and services, aimed at improving in particular energy efficiency of buildings. Such a measure is hoped to encourage Member States to provide further incentives to consumers to stimulate demand for environmentally-friendly products.

Also, Member States and the private sector should increase planned investments in education and R&D (consistent with their national R&D targets) to stimulate growth and productivity. They should also consider ways to increase private sector R&D investments, for example, by providing fiscal incentives, grants and/or subsidies.

The European Economic Recovery Plan is available at
http://ec.europa.eu/commission_barroso/president/pdf/Comm_20081126.pdf.