"We need targeted short-term action to protect jobs and purchasing power. But I reject the fallacy that the economic crisis means we cannot afford to step up efforts to save energy and tackle climate change," he said.

Turning to the Lisbon Treaty, a landmark treaty to streamline the EU institutions and decision-making, Barroso said he supported a move to satisfy Ireland's demand for a permanent seat in the future European Commission.

The move would allow all 27 EU member States to keep a post of commissioner in the EU's executive body, instead of cutting the number by a third, as the Lisbon Treaty would do.

"The treaty allows for that kind of situation, so if this is a very important condition for Ireland I personally would support it," Barroso said.

The Irish rejected the Lisbon Treaty in a nationwide referendum in June. The treaty must be ratified by all 27 member states before it can take effect.

Barroso said he was confident that EU leaders can respond to Ireland's national concerns while finding a European solution.

Irish Prime Minister Brian Cowen was expected to propose a "road map" to end the treaty impasse at the summit.

With three "hard nuts" on the table, Barroso said the summit would be "a real test for Europe."

"I hope that this week, Europe will show that it can act when it matters most. That it can act in a true spirit of partnership," he said.

(Xinhua News Agency December 10, 2008)