The Commission will propose on Wednesday a list of measures that members of the 27-nation bloc can use to boost the economy.

A draft of the package, obtained by Reuters, did not yet specify its size in billions of euros or as a percentage of GDP.

Germany said last week the package would be around 1 percent of the bloc's GDP, or 130 billion euros (S$253.9 billion).

'Only through a significant stimulus package can Europe counter the expected downward trend in demand, with its negative knock-on effects on investment and employment,' the Commission draft said.

'Therefore the Commission proposes that member states agree a coordinated budgetary stimulus package which should be timely, targeted and temporary, to be implemented immediately,' it said.

'This budgetary stimulus should be foreseen for a maximum period of two years (2009-2010) following which member states' budgets should commit to reverse the budgetary deterioration and return to the aim set out in the medium-term objectives.' The medium-term objectives for most EU countries are balanced budgets. -- THOMSON REUTERS