EU’s Barroso says able to act on Ireland if needed

European Commission President Jose Manuel Barroso said on Thursday the European Union is able to take action to support Ireland if needed.

"What is important to know is that we have all the essential instruments in place in the European Union and euro zone to act if nececessary, but I am not going to make any speculation," he told reporters, when asked whether Brussels would need to act to support Ireland.

Barroso was speaking to journalists ahead of the Group of 20 leaders' summit in Seoul.

Ireland is trying to tackle the worst budget deficit in the EU and convince markets it does not need a Greece-Style bailout.