BEIJING - EUROPE on Thursday called for greater help from Asia in tackling the 'unprecedented' challenges of the global economic crisis, on the eve of a summit here between leaders of the two regions.

However a diplomatic spat threatened to distract the two-day Asia Europe Meeting (Asem), after the European Union parliament defied warnings from China and awarded its major human rights award to a prominent Chinese dissident.

With both continents struggling to cope with the worst economic meltdown since the Great Depression, the 43 nations belonging to Asem were expected to agree on tighter cooperation in tackling the turmoil.

'We swim together or we sink together,' European Commission President Jose Manuel Barroso said after arriving in Beijing, as he called for Asia and Europe to work together if they were to survive the crisis.

'We need Asia to be on board, and more particularly countries like China, India (and) Japan,' he told reporters, outlining the 'unprecedented' challenges facing the global economy, under threat of a looming worldwide recession.

'I very much hope that China can make an important contribution to the solution to the financial crisis. It's a great opportunity for China to show a sense of responsibility.'

European governments have already committed more than two trillion dollars to banks and the money markets in a largely coordinated move to shore up their plummeting stock markets.

Asian governments, however, have so far mostly limited their intervention to cutting interest rates, guaranteeing bank deposits and injecting money into the credit markets - without the kind of coordinated action taken by Europe.

'The present gathering could not be more timely. We face challenges which don't respect any borders,' Mr Barroso said.

'No one in Europe or Asia can seriously pretend to be immune. We are living in unprecedented times, and we need unprecedented levels of global coordination.'

French President Nicolas Sarkozy, whose country currently holds the rotating presidency of the European Union, has already said he would use the summit to seek Asian backing for his bid to rebuild the world's financial system.

China offered to cooperate more closely with the rest of the world in working to solve the economic crisis.

'We need to explore the possibilities for reform of the international financial structure so that we can make joint efforts to stabilise markets,' foreign ministry spokesman Liu Jianchao said, although he gave no specifics.

There were few expectations that the two days of talks Friday and Saturday would result in any major coordinated action on the financial crisis.

That was expected to come when leaders of the world's richest nations and biggest emerging economies gather in Washington on November 15.

Meanwhile, a decision by the European Parliament to award its Sakharov Prize to jailed activist Hu Jia distracted the lead-up to the talks.

China expressed anger at the decision to award the prize to Hu, 35, who was imprisoned for three-and-a-half years in April on subversion charges.

'This is gross interference in China's domestic affairs,' Mr Liu said.

However, after China had warned Europe that honouring Hu would harm ties, Mr Liu sought to play down any impacts on the summit.

'I don't think this will affect the meeting,' he said.

Mr Barroso had earlier said that human rights - long a flashpoint issue between China and Europe - would be on the agenda at the talks, which are held every two years.

'It's important that we discuss all matters, including sometimes the most sensitive ones,' Mr Barroso said.

Ahead of Friday's summit, German Chancellor Angela Merkel was expected to meet Prime Minister Wen Jiabao and President Hu Jintao late Thursday, as she looked to mend ties frayed by her meeting with the Dalai Lama. -- AFP