BERLIN - EUROPEAN Commission chief Jose Manuel Barroso said he did not expect a 'miracle' at the G20 summit this weekend but rather first steps to tackle the most dire problems facing the global economy.

'We cannot expect a miracle from this summit, which was Europe's idea, but will rather see the beginning of a process that will create a finished programme in 100 days,' he said an interview with the German daily Sueddeutsche Zeitung published on Friday. 'This summit must not fail.'

Mr Barroso said that did not mean that concrete decisions would not be taken at the Washington meeting.

'For example we need to give the International Monetary Fund more power to act and achieve our main goal of imposing effective regulations on every relevant financial institution - around the globe, nationally and internationally,' he said.

'That is also something that many participants would not have agreed to a few months ago. The crisis has forced them to reconsider.' He acknowledged that Europe was 'on the verge of a serious economic slowdown' and said the 27 European Union member states must roll out measures to shore up their real economies.

'We must immediately develop a similar tool box for our economy like we have for the financial system,' he said.

German Chancellor Angela Merkel told the same newspaper in remarks released Thursday that she expects 'difficult talks' at the G20 summit.

But she said it was crucial that the first steps towards improved financial regulation are taken soon.

Leaders of the Group of 20 richest economies and emerging economic powers are gathering in the US capital at the weekend to craft a joint strategy to grapple with the global financial crisis. -- AFP