EU Barroso: Economic, Financial Situation Still Fragile

EU Barroso: Economic, Financial Situation Still Fragile

BRUSSELS -(Dow Jones)- The financial system and the global economy remain fragile, European Commission President Jose Manuel Barroso said Thursday, warning that state support measures are still needed.

According to the text of a speech delivered on the sidelines of the Group of 20 industrialized and developing countries, Barroso said it is too soon for governments to withdraw fiscal stimulus spending and other efforts to foster economic recovery.

"We need to keep support measures in place, but be ready with an exit strategy," he said in the speech at the University of Pittsburgh.

Barroso said the G20 leaders, who are meeting Thursday and Friday in Pittsburgh, should agree to financial-market reforms, including an international agreement to rein-in pay and bonuses. Some European Union leaders want a pact to include strict pay caps for bankers, while the U.S. favors a less-severe approach.