(Updates with background, more detail and comments)
BRUSSELS -(Dow Jones)- Euro-zone finance ministers Monday backed a European Commission proposal for a plan to boost the economy, although they didn't specify how much money should be spent, Luxembourg's Prime Minister and Finance Minister Jean-Claude Juncker said.
"Everyone believes that monetary policy alone can't guarantee enough of a response to react to the crisis," Juncker, who chairs the monthly meetings of euro zone finance ministers, told a news conference. "The commission proposals go in a good direction."
Juncker said measures need to be "temporary, targeted timely and coordinated," in an effort to preserve the credibility of the bloc's budget rules.
The commission last week proposed a EUR200 billion stimulus plan, which is being discussed by the finance ministers ahead of a Dec. 11 meeting of European Union leaders.
Still, while ministers didn't reach agreement on a figure, it's likely that the final amount will be close to the amount indicated by the commission.
"It's a bit too early to put a price tag on all the fiscal measures that are being adopted," said European Commissioner for Economic and Monetary Affairs Joaquin Almunia, adding that the final tally of final fiscal stimulus program will be "very close" to the amount the commission proposed Wednesday.
Fiscal impulse on that scale, Juncker said, will grant the continent's economy at least two additional points of gross domestic product growth over the next two years.
Euro-zone member states have been at odds on how to face the economic crisis, as some have looked more willing to hamper their budgetary situation in order to boost the economy.
Notably, a rift seemed to have emerged between Germany, herald of sound public finances, and other countries, like France, which is more inclined to commit more money to their plans.
But Almunia said the group is content with the German position, and with the EUR32 billion the euro zone's largest economy has already committed.
"We appreciate what Germany has done," Almunia said. He added that coordination among member states is essential for fiscal measures to work efficiently.
The state of the economy was discussed at the meeting, and euro group ministers expressed concern with the worsening outlook.
"Some of the risks that we forecast a month ago have materialized," Almunia said, as he noted that the economic forecast the commission published only last month are already "becoming a little bit outdated."
Still, he was adamant that the crisis won't allow member states unlimited leeway to overrun the stability and growth pact criteria that dictate budget rules for the E.U.
"The deviation from 3% needs to be close and temporary," Almunia said. By "temporary," he said, he meant "one year."
Member states will be asked to present updated stability programs by the end of the year, and, if required, the commission will open excessive deficit procedures, Almunia said.
-By Gabriele Parussinia and Adam Cohen; Dow Jones Newswires; 0033 1 4017 1740; gabriele.parussini@dowjones.com; adam.cohen@dowjones.com
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(END) Dow Jones Newswires
December 01, 2008 17:59 ET (22:59 GMT)

Publié le 01 Décembre 2008 Copyright © 2008 Dowjones