West Germany's economic stimulus plans may fall short of growth rates needed to cut unemployment next year, the European Common Market Commission warned yesterday.
EEC headquarters in Brussels questioned the effectiveness of the Bonn government's plan to inject the equivalent of about $7 billion into its economy to stimulate output.
In its annual report on the economic situation in the nine-nation Community, the EEC executive urged West Germany to aim for a growth rate of 4.5 per cent next year to reduce joblessness. Its growth this year is expected to reach only 3 per cent.
The commission also urged selection measures to tackle unemployment problems with EEC foreign ministers agreed in Luxembourg this week must get top priority from the Common Market's strongest economics.
It backed commitments from the ministers to try [WORD ILLEGIBLE] overall EEC growth rate in 1978 of between 4 and 4.5 per cent, to cut inflation to 8 per cent and slash both unemployment and balance-of-payments deficit.
The report said Britain could show a $1.75 billion balance of payments surplus next year and reduce inflation to 10 per cent if the government managed to hold the line on wage increases to 10 per cent.
It added that Italy should maintain tight budget and credit policies.