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EU Recovery Plan

Volume 487: debated on Wednesday 4 February 2009

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what assessment he has made of the provisions of the European Commission’s EU Recovery Plan; and if he will make a statement. (241326)

The UK Government welcome the European Economic Recovery Plan published by the European Commission. The UK Government have announced measures to directly tackle the slowdown in the UK economy but it is important to have a co-ordinated response from all member states.

The provisions of the recovery plan, worth €200 billion (1.5 per cent. of EU GDP), should limit the scale of the economic downturn that is currently being experienced and avoid the downward spiral effect that may materialise from falling demand. The money will be used to target different priority areas, including job training, investment in research and technology and investment in energy infrastructure. The fiscal stimulus combined with proposals designed to speed up the structural reforms under the Lisbon Growth and Jobs Strategy will improve the long-term competitiveness of Europe. For instance, the importance of continuing to invest in research and development is recognised in the recovery plan, providing a platform for the long-term on which Europe can capitalise once the economy has emerged from the downturn.