Widespread support for EU stimulus

The European Union stimulus package has widespread support and Germany is sure to play an active part in it, European Commission President José Manuel Barroso said yesterday.

Mr Barroso, British Prime Minister Gordon Brown and French President Nicolas Sarkozy dismissed speculation that Germany - Europe's biggest economy - had reservations about the €200 billion plan.

"I was proud to see overwhelming support for the European economic recovery plan presented by the Commission," Mr Barroso told reporters after meeting Mr Brown, Mr Sarkozy and European business leaders in London.

"I have full confidence in the efforts that Germany is making and will make. Germany is the most important European economy and so it would be completely unreasonable to think about any plan without the active cooperation of Germany."

European leaders will meet in Brussels on Thursday and Friday to discuss the stimulus package, which includes spending €5 billion on energy and broadband projects, and plans to bring forward €4.5 billion for infrastructure to earlier in 2009.

However, the London meeting had threatened to be overshadowed by the absence of German Chancellor Angela Merkel, with suggestions she had been snubbed by Mr Brown and Mr Sarkozy over her lack of enthusiasm for the EU plan.

"I don't share the view, on the eve of our European Council meeting that there is disagreement on the seriousness of the crisis and the need for stimulus," Mr Sarkozy said, a view reiterated by Mr Barroso and Mr Brown.

Mrs Merkel is under fire from some EU nations and domestic lawmakers for what they say is a dithering and isolationist approach to the financial crisis.

In particular, they are angry over her reluctance to embrace the EU approach, although her coalition has pushed through a national stimulus package it says is worth €31 billion. A spokesman for Mr Brown insisted the London gathering was an "informal meeting", adding that the British and German leaders had discussed the economy in a phone call on Sunday.

"Obviously each country has to take the action that it feels appropriate," the spokesman said. "We have already seen the announcement of the fiscal stimulus package in Germany."