It is reported that European Union is concerned about a "Buy American" provision in a proposed US stimulus plan.

Mr Peter Powell spokesperson of EU said that despite the concerns over the stimulus provision, the European Union has adopted no official stance on the proposal to date.

He added that "We are looking into the situation. Before we have the final text it would be premature to take a stance on it. However, the one thing we can be absolutely certain about is if a bill is passed which prohibits the sale or purchase of European goods on American territory that is something we will not stand idly by and ignore."

The "Buy American" provision in the stimulus plan, which is currently before the US Senate, calls for contractors to only use steel made in the United States. The provision would only apply to development projects that would be funded by the USD 825 billion stimulus plan.