Barroso rejects Sarkozy's call for EU economic government

(BRUSSELS) - European Commission chief Jose Manuel Barroso on Thursday dismissed as unrealistic a call by French President Nicolas Sarkozy for Europe to create an "economic government."

While agreeing that there is "much more awareness of the need for coordination" to help Europe tackle economic crises, Barroso gave short shrift to the more radical French proposal.

"I will not say 'economic government' because let's be frank, we are not going to have an economic government in the EU," Barroso told an audience at a think-tank meeting in Brussels.

"So let's be realistic; what we can do is to improve governance, this is possible," he told the Centre for European policy studies gathering, a week ahead of an EU summit focused on coordinating fiscal action.

During the previous EU economic summit last month, Sarkozy said the idea of a European economic government had the full backing of his fellow EU leaders.

"I didn't hear a single country contesting the need for an economic government for Europe which we have proposed with the Chancellor," Angela Merkel, Sarkozy told a joint press conference with the German leader then.

The Germans have shied away from talk of an "economic government" preferring to talk of "economic governance."

They have long felt that France would like to rein in the role and independence of the Frankfurt-based European Central Bank, which sets the base rate for the 16-nation eurozone of which both France and Germany are members.