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Barroso warns against rush intervention on financial markets

European Commission President Jose Manuel Barroso warned on Tuesday against rush intervention on the volatile financial markets, arguing that fundamentals of the European Union economy are sound.

“What is needed now is action that is both targeted and proportionate,” said Barroso in a statement before his departure for a meeting of leaders of the EU’s largest economies in London. “We must not be tempted into protectionism, or futile attempts to stem financial globalization, or an artificial stimulus of the economy,” he said. British Prime Minister Gordon Brown is hosting a mini-summit of EU’s Group of Eight member states. “The fundamentals of the EU economy are sound. We have the lowest unemployment rate for 25 years. We have a positive current account balance. The euro is strong. We remain on the growth path,” argued Barroso. “We cannot be complacent. But we can be confident,” he said. (