European Commission President Barroso feels the EU is facing an unprecedented situation due to the economic crisis and needs to work at different levels to restore credit flows. Barroso sees the EU blocs’ economy contracting 2% this year, roughly in line with earlier commission estimates, but better than the ECB forecast which sees the economy shrinking by as much as 3.2%.

Barroso says recovery is the main focus for the commission, so it was accelerating spending this year and next to boost the economy. Barroso says “as much as 3.3% of our GDP is now being pumped into the economic system” adding “this is an equivalent of more than 400 bln euros, and amounts to potentially massive support for growth and employment across the European Union.”