EU Commission chief Barroso calls for 'federation'
President of the European Commission Jose Manuel Barroso has warned that the EU's financial crisis is "fuelling populism and extremism" in Europe.
Addressing the EU parliament in Strasbourg, Mr Barroso said the European Union needed to become a "federation of nation states", if it was to overcome its economic and political crisis.
Mr Barroso also set out plans for a single supervisory mechanism for all banks in the eurozone.