EU's Barroso says stimulus plan could be bigger

LISBON (Reuters) - Europe should not rule out raising the size of its 200-billion-euro package to boost the slumping economy, European Commission President Jose Manuel Barroso said on Monday.

The European Union agreed in December on a package of 200 billion euros ($278 billion) to revive the economy, which is slowing sharply as the global credit crunch deepens.

"Will it (the package) be sufficient? We'll see," Barroso told journalists when asked about the financing package.

"The European Union gave a very adequate response, but the situation is evolving," he said. "We can't exclude that there is a revision of the response (the package) in function of what becomes necessary."

Germany, Europe's largest economy, is considering a new economic stimulus package of up to 50 billion euros after the government pushed through a package of 31 billion euros late last year.

(Reporting by Sergio Goncalves and Shrikesh Laxmidas; writing by Axel Bugge; editing by Stephen Nisbet)