The European Commission is expected this week to announce it will accelerate at least €6bn ($7.5bn, £5bn) of structural funding payments and simplify red tape surrounding fund applications to help regenerate local economies in the recession.

Sources at the EU executive said the new measures, which will form part of Wednesday’s European financial recovery package, are designed to bolster confidence in the public and private sectors by supplying faster financing for hundreds of thousands of projects across the regions.