Brussels - Europe's financial system remains "solid" and does not need a US-style plan to buy up "toxic assets" with public money, European Union officials said Wednesday.

However, there is "no doubt" that the global financial crisis is hurting Europe's real economy, with the bloc's economic and monetary affairs commissioner, Joaquin Almunia, warning that "we expect growth in both the EU and the euro area to remain relatively weak next year."

"The situation we face here in Europe is less acute and (EU) member states do not at this point consider that a US-style plan is needed," Almunia said in a speech to the European Parliament.

His words were echoed by Jean-Pierre Jouyet, France's Secretary of State for European Affairs, who was addressing European lawmakers on behalf of the presidency of the EU.

"The financial system in Europe remains solid," Jouyet said.

Consequently, the EU "is not planning similar measures as those adopted by the US authorities, such as buying toxic assets," he added.

The US Congress is currently debating an unprecedented 700- billion-dollar programme to buy up bad mortgage debts and related securities that have brought the banking system and the nation's economy to the brink of ruin.

Almunia on Wednesday welcomed the initiative, but said the details of the proposal by US Treasury Secretary Henry Paulson "need to be properly defined - and quickly - if it is to succeed."

The current financial turmoil, which was sparked by last year's subprime mortgage crisis in the United States, has already led to disclosed global losses totalling more than 500 billion dollars - a sum equivalent to the gross domestic product of a country like Sweden, Almunia noted.

"And unfortunately, the final figure is considered to be larger still," the commissioner said.

However, unlike in the United States, only a handful of European banks have so far required a public bailout - among them Britain's Northern Rock and Germany's IKB.

European officials agree that lack of transparency on the financial markets is largely to blame. But some have also pointed their fingers at greedy bankers and company bosses.

The EU's executive body, the commission, will over the coming weeks unveil a series of proposals aimed at improving the rules that govern financial markets and institutions. These include a set of requirements for credit rating agencies wishing to operate in the EU.

"Delivering improvements in financial market regulation ... is more urgent than ever," Almunia said.

The commissioner also told the European Parliament that EU finance ministers plan to discuss what to do about the excessively high bonuses and severance pay earned by some European CEOs at a meeting scheduled for October 6-7. (dpa)