He was speaking at the opening of a summit of the Friends of Cohesion Policy, an informal group of European Union countries which receive from the European budget more than they invest. In attendance were prime ministers and senior officials of 15 EU countries, including Croatian PM Zoran Milanovic as an observer.

Barroso said everyone was talking about growth and that everyone wanted it in principle, but added that growth could not be achieved with a regulation.

European investment funds must be guided by a successful outcome and result in job creation, growth and a better economic situation, he said.

Barroso warned that the demand of the Friends of Better Spending, that European funds were spent in a better and smarter way, should not be seen as a threat but an opportunity.

He said the weeks leading up to the European Council summit on November 22-23, which could be crucial for the adoption of a final draft of the 2014-20 European budget, would see tough discussions, but stressed that resolute joint action was necessary to provide for growth and job creation.

He thanked everyone who had supported the European Commission in its efforts to redirect funds from less active funds into areas that needed them most, saying EUR 14.5 billion had been raised and directed into the European economy, which had greatly cushioned the consequences of the crisis.

European Parliament President Martin Schulz said compromise was the key word in the discussions on the new budget. He said everyone would have to agree to compromise, including the Friends of Cohesion, adding that the differences were relatively small and must not bring into question the EU's position.

If the compromise reached at the European Council summit on November 22-23 is unjust, the European Parliament will not support the proposal, he added.