1. Wide shot of German parliament debating the budget
2. Close up of German Foreign Minister, Frank Walter Steinmeier speaking
3. Midshot of German national emblem
4. Wide of parliamentarians
5. Mid of parliamentarians
6. Wide exterior shot of Reichstag building
7. Close of German and EU flags
8. Wide of Professor Christian Dreger passing by the camera
9. Close of economic magazines on the shelf
10. SOUNDBITE: (German) Professor Christian Dreger, Head of Department of Macro Analysis and Forecasting:
"The EU suggested the temporary cut in the VAT to steer the consumption, but we already have a consumption kick through the falling oil prices. They have been significantly decreasing since the summer, and that fact stimulates the purchase power of the private households in a significant amount, we're projecting it in the amount of 30 (b) billion only in Germany. Therefore, we already have a programme which stimulates the consumption and supports private households."
Germany is digesting the implications of the European Commissions call on Wednesday, for EU governments to jointly combat the economic slowdown with 256.22 billion US dollars in spending and tax cuts to boost growth and consumer and business confidence.
If fully enacted, its two-year "European Economic Recovery Plan" would see the 27 EU governments spend 1.5 percent of the bloc's gross domestic product to halt the slowdown that has already pushed some European nations into recession.
The majority of the money would come from national governments and run the gamut from outright tax breaks to credit guarantees for ailing industries, to soft loans to exploit new green technologies.
The remainder would be financed from the EU budget and the European Investment Bank.
Germany, Europe's largest economy, has largely welcomed the plan but a government spokesman said Berlin will insist that as public spending rises the European Commission must cut governments some slack over the sound-spending rules that underpin the stability of the euro.
Barroso promised the European Commission would do so in the years ahead.
The EU leaders are to discuss the proposals at a December 11-12 summit in Brussels.
The EU plan comes a day after the Paris-based Organisation for Economic Cooperation and Development said the financial crisis will likely push the world's developed countries into their worst recession since the early 1980s.
The Paris-based group said economic output will likely shrink by 0.4 percent in 2009 for the 30 market democracies that make up its membership, against the 1.4 percent growth prediction for 2008.
Differences over fiscal measures have emerged among governments.
Germany and France reject cuts in their value-added (sales) taxes - for fear of losing revenue - while Britain is cutting its to 15 percent from 17.5 percent to encourage British consumers to keep spending money.
Barroso said it was inevitable to see such differences given the varying economic outlooks across the EU.
In 2009, Slovakia, Bulgaria, Romania and Poland are expected to book economic growth of up to 4 percent or more, whereas negative growth of as much as 2.7 percent will be seen in Latvia, Britain, Ireland, Spain and
France, Italy and Germany will likely be at a standstill next year, according to EU projections.
Economic growth , Economy , National budgets , National taxes , Financial crisis , Fiscal policy , Government and politics , Recessions and depressions , Business , Government budgets , Government finance , Government business and finance , Government business and finance , National budgets , National governments , Government taxation and revenue , National taxes , Financial crisis , Financial markets , Economic policy , Economic policy , Economic policy , Government policy
European Commission, Germany government, European Union