EU's Barroso dismisses 'liberal' criticism

(STOCKHOLM) - European Commission chief Jose Manuel Barroso, who is seeking a second five-year term, fended off criticism on Wednesday that he is too market friendly, insisting he was not a "liberal".

"It's not a crime to be liberal, but I am not a liberal," the former conservative Portuguese prime minister told a news conference in Stockholm marking the beginning of the Swedish EU presidency.

"If I were liberal I would say so (but) I am a centrist reformer," he insisted. "I am not a liberal, that's a caricature that some people have made of me which does not correspond too reality."

Barroso said that the "liberal" label had been stuck to him because of the controversial service sector liberalisation directive, which he inherited from his predecessor in 2004 and staunchly supported.

The directive, which aims to make it easier for service providers to work across EU borders, prompted fears in some older member states such as France about an invasion of cheap labourers from new eastern European countries.

More recently, Barroso has also attracted criticism for reacting too slowly to the financial crisis by not picking up the mantle of tougher regulation fast enough, as France and Germany in particular wanted.

While Barroso is the only candidate to lead the commission in its next term, it is not absolutely certain that he will get the job even if EU leaders have given their backing in principle.

The European Parliament, where he has been criticised for his alleged liberal leanings by Socialists and Greens, could put off voting on his second mandate for several months, which could give his detractors time to find a rival.