European Commission President Jean-Claude Juncker said a $380 billion stimulus is needed to restore the European Union's economy and to show the world “Europe is back in business.”
The European commission chief said Wednesday $26 billion in seed money would flow from EU institutions under the proposal to improve investor confidence in Europe where massive government debt has undermined an investment market recovery.
Juncker said the European Investment Bank would be the "prime mover'" in delivering seed money in areas that would otherwise not attract private investment.
The proposal will be discussed by the 28 EU leaders at the Dec. 18-19 summit. After years of focusing on cutting debt, the move toward investment is seen as an important message to lift the continent out of its economic quagmire.
Juncker insisted the plan would not rely on creating more debt, which already stands at some 90 percent of gross domestic product in the EU.