Nov. 20 (Bloomberg) -- The European Union is crafting a coordinated economic-stimulus package to spur its 27-nation economy based on contributions by each EU government.

``Everyone is suffering from the crisis and everyone needs treatment, but not everyone needs the same pill,'' European Commission President Jose Barroso told reporters in Brussels today. He said the commission, the EU executive, will announce a fiscal-stimulus plan next week ``based on member states taking measures suited to their own economic situation.''

German officials have put the size of the economic package at 130 billion euros ($162.5 billion), a figure Barroso refused to confirm. Barroso will discuss the stimulus proposal later today with French President Nicolas Sarkozy, whose government currently holds the rotating EU presidency. The plan is to be approved by the commission on Nov. 26 and put before European leaders at a December summit in Brussels.

The global financial crisis, which deepened after the September collapse of Lehman Brothers Holdings Inc., pushed the euro-area economy into its first recession since the introduction of the single currency almost a decade ago. To support flagging growth, the European Central Bank has signaled more interest-rate cuts are possible after lowering its benchmark rate by a full percentage point in the course of a month to 3.25 percent.

``What we need is a coordinated European Union response,'' Barroso said. ``A one-size-fits-all approach would not help.''

German Economy Minister Michael Glos told German television this week that ``we're talking about a package worth 130 billion euros in all.'' EU states will be expected to chip in 1 percent of gross domestic product to finance the stimulus plan, Glos spokeswoman Anne-Kathrin Roethemeyer said.

Stimulus Package

``That would mean Germany contributing about 25 billion euros,'' Roethemeyer said in an interview yesterday. A 50 billion-euro stimulus package approved by Chancellor Angela Merkel's government on Nov. 5 ``may or may not be figured'' in the EU's calculation, she said.

``From what I've seen of the draft,'' said Glos, ``there's also a tax reduction for smaller incomes.''

Barroso said ``no political decisions have been taken'' on the stimulus proposal. ``I cannot at this moment confirm or deny any of the figures that I have seen,'' he told journalists.

EU finance ministers and central bankers in September said they had no plans to follow the U.S. in stimulating their economy as they failed to agree on ways of rescuing any foundering financial institution. Last week, government leaders from the Group of 20, which includes the EU, pledged ``broader'' action to boost economic growth, including the use of fiscal policy where appropriate.

Industry Federation

``I want consensus on an EU-wide investment program,'' Juergen Thumann, president of Germany's BDI industry federation, said today in a Bloomberg Television interview in Frankfurt. ``It would be good if we could all agree on this in Europe.'' The Berlin-based BDI represents Germany's 107,000 biggest companies including Siemens AG and BASF AG.

The EU said on Oct. 29 that it was working on an economic- recovery program that would be presented Nov. 26. Barroso today said the plan would set out ``timely, targeted and temporary'' actions to combat the fallout from the financial turmoil.

To contact the reporter on this story: Meera Louis in Brussels at mlouis1@bloomberg.net.

Last Updated: November 20, 2008 10:08 EST