MercoPress. South Atlantic News Agency

EU agrees on need to invest on digital infrastructure

British PM Gordon Brown said more investment is needed in technology and environmentally friendly industries in an effort to tackle the downturn. Brown held Downing Street talks with French President Nicolas Sarkozy and Jose Manuel Barroso, head of the European Commission.

Afterwards he said technology could help governments in their efforts to "invest out of the downturn". EU leaders are to hold an economic summit in Brussels later this week. Also taking part in Downing Street meetings were representatives of companies including Vodafone, Tesco, British Telecom, the National Grid, Corus, Prudential and Diageo. Mr Brown said: "We have looked at how, just as many years ago investment in road and rail and infrastructure was a powerful stimulus to the economies then, so too in this new age we can invest in the digital infrastructure for the future." He added that areas to be looked at included telecommunication, environmentally related industries and new environmental technologies. The aim was "to build the technological and environmental infrastructure of the 21st century as we invest out of the downturn", Mr Brown said. In November the European Commission unveiled an economic recovery plan worth 200billion Euros, including at least 5billion Euros to help the car industry develop green technologies. Last week France became the latest of the biggest European economies to unveil a fiscal stimulus package. Britain has already unveiled a £20bn (23.6 billion Euros) plan - which includes a cut in VAT, but the prime minister's spokesman has indicated more is needed to be done across Europe.