The European Commission wants to be able to suspend parts of the next multibillion euro (dollar) funding program for poorer regions if too much money is lost through bad economic policy or insufficient oversight.

In a carrot-and-stick approach, the European Union's executive announced Thursday, October 6, that its proposals to spend euro336 billion over seven years also will include financial rewards for projects that stick closest to their commitments.

The proposals will now be taken up by the 27 member states, and the new multibillion euro (dollar) program should kick in by 2014, The Associated Press reported.