The European Commission will announce on November 26 2008 a massive set of measures to kick-start the economy taking effect immediately but spanning no more than two years.

The draft's final version needs the nod of all European Union members at an early December summit.

The price tag is rumoured at 130 billion euro, which is 20 billion euro more than one per cent of the bloc's total gross domestic product.

The 27 member states, however, do not see eye to over each contributing one per cent of its GDP.

Eurogroup Chairman Jean-Claude Juncker yesterday approved the plan's value saying it was the EU's sole adequate reaction to the financial crisis.

The EU members which overstep the three per cent budget deficit limit in the next two years should go back to previous norms right after 2010, Juncker said.

The fiscal plan comprises a wide range of proposals leaving separate members room to map out their own urgent measures as well.

The set of measures includes tax breaks to save jobs, lower consumption taxes and an ECB lending rate cut to get the credit going.

Small and medium companies will be encouraged by fewer bureaucratic hurdles for state aid and more loans from the European Investment Bank.

Source: Dnevnik