19/06/2012 05:01 BST | Updated 19/06/2012 06:06 BST

G20 Summit: José Manuel Barroso, Head Of Euro Commission, Blames US For Starting Eurozone Crisis

The head of the European Commission accused the US of starting the eurozone crisis as he hit back at demands presented at the G20 summit for EU leaders to put an end to the current financial turmoil.

Responding to a question from a reporter on why North America should "risk their assets" to help Europe, Jose Manuel Barroso said the crisis had "originated in North America" and that European leaders were not at the G20 to "receive lessons" on the economy.

"Frankly, we are not coming here to receive lessons in terms of democracy or in terms of how to handle the economy," he said at the summit in Los Cabos, Mexico.

"This crisis was originated in North America, and many of our financial sectors were contaminated by, how can I put it, unorthodox practices from some sectors of the financial market."

eurozone crisis in america

Outburst: European Commission president José Manuel Barroso

He insisted, "the challenges are not only European, they are global."

On Tuesday, a draft statement is due to be released by the G20 calling for a global plan for growth and job creation.

Reported by Reuters, the document will also call for tighter fiscal co-ordination and a greater integration of the EU's banking system.

It will say: "We support the intention to consider concrete steps towards a more integrated financial architecture, encompassing banking supervision, resolution, and recapitalization, and deposit insurance," the draft reads.

"The European Union members of the G20 are determined to move forward expeditiously on measures to support growth... while maintaining the firm commitment to implement fiscal consolidation to be assessed on a structural basis."


Meanwhile in Greece, the New Democracy party, winners of the elections on Sunday, are desperately trying to create a workable coalition government amid huge pressure from global powers. New Democracy leader Antonis Samaras has been locked in negotiation with socialist party Pasok, but would prefer a wider coalition to improve chances of the fledgling government's success.

On Monday, Jose Angel Gurria, the head of the Organisation for Economic Co-operation and Development (OECD), said that the eurozone crisis represented "the single biggest risk for the world economy".

British Prime Minister David Cameron joined also added his concern, calling for "core" eurozone states like Germany, as well as the European Central Bank, to take the decisive steps towards fiscal and banking union which he believes are necessary for the euro to function properly.

"We have to understand the German difficulties," he said. "It is very difficult politically to take the steps that are required economically."

"But nonetheless if you want a functioning single currency you have to take at least some of those steps. You need to have elements of banking union, fiscal transfers and so on."