The European Commission has revealed plans to provide 100m euros - around £85m - to citizens of European Unions countries that wish to set up a small business.

The money would also be used to support exisitng entrepreneurs that are struggling in the economic downturn with mentoring, training and coaching.

"This new facility will extend the range of targeted financial support to new entrepreneurs and help them to overcome the squeeze on credit," said Jose Manuel Barroso, Commission President.