Brussels - European Union leaders are set to agree on a 200- billion-euro (265-billion-dollar) shot in the arm for the bloc's struggling economy, Luxembourg Prime Minister Jean-Claude Juncker said Thursday.

"I expect that we will reach an agreement on the volumes proposed by the European Commission," Juncker, who also acts as the powerful chairman of the group of countries that share the euro, told Deutsche Presse-Agentur dpa.

Speaking at a two-day summit in Brussels, Juncker said leaders had held "broad discussions" on the need to provide a strong response to the economic crisis, adding that he expected a formal decision to be taken on Friday.

The commission, which acts as the EU's executive arm, has proposed a fiscal stimulus package worth 1.5 per cent of the bloc's gross domestic product, roughly equivalent to 200 billion euros.

The package, which puts together economic recovery plans being assembled by the bloc's 27 member states, is designed to stave off a looming recession sparked by the global financial crisis.

The commission has said it will contribute to the total with community funds worth 30 billion euros. (dpa)