European Commission President Jose Manuel Barroso on Wednesday warned that a failed crisis euro summit on Thursday could damage the European economy as a whole and send shockwave beyond to the global level.

President of the European Commission Jose Manuel Barroso (R) welcomes the Greek Prime Minister Georgios Andreas Papandreou prior to a bilateral meeting in Brussels, capital of Belgium on July 20, 2011. (Xinhua/Thierry Monasse)
"Nobody should be under any illusion: the situation is very serious," Barroso told a press conference, just one day ahead of a crisis summit which is expected to outline a new rescue package for debt-ridden Greece.

"It requires a response, otherwise the negative consequences will be felt in all corners of Europe and beyond," Barroso said.

According to Barroso, Thursday's summit will also focus on the role of the European Financial Stability Facility (EFSF), repairing of the banking sector, and measures to ensure the provision of liquidity to European banking system.

He said the commission had created a Task Force for Greece, consisting of experts to help push forward Greek reforms, and that a proposal for the transposition of the Basel III agreement on bank capital requirements had been adopted.

"All of this is part of the wide-ranging exercise of reform and renewal that Europe is undertaking and that Europe has to deepen. But all of our efforts are based on a strong single market and a strong Euro. That is what is at stake," Barroso said.

VietNamNet/Xinhuanet