London - A revival of the world economy requires both fiscal stimulus packages and stricter financial regulation, the president of the European Commission, Jose Manuel Barroso said Monday.

Speaking after talks in London with British Prime Minister Gordon Brown, Barroso rejected a "false choice" between fiscal stimulus measures and improved regulation.

"We need both," said Barroso. But he added that the rebuilding of trust in international markets and greater openness were equally important.

Barroso stressed that measures already taken by EU governments needed to be implemented, and that EU countries had already spent 3.3 per cent of their GDP on coordinated fiscal measures.

"Money does not grow on trees," said the EU Commission chief, but added that Europe was prepared to take "additional measures if necessary."

Both Brown and Barroso vowed to make the G20 summit in London next month a "success" and warned that a return to protectionism must be avoided at all cost. (dpa)