(MADRID) - EU Economic and Monetary Affairs Commissioner Joaquin Almunia said Thursday he opposed the use of "financial socialism" to bail out private companies suffering financial meltdowns, unless they presented risks to the global economy.

"Socialists like me, we are against financial socialism," he said in reference to state operations to rescue companies in financial turmoil.

He was speaking in the wake of massive interventions by the Bush administration to shore up faltering US financial institutions, reeling from the sub-prime mortgage meltdown, with loans and other means of support.

The US government in recent weeks has ridden to the rescue of investment houses Bear Stearns and Lehman Brothers, mortgage guarantors Fannie Mae and Freddie Mac and most recently insurer AIG.

Almunia, who was formerly secretary general of Spain's Socialist Party, nonetheless told a conference in Madrid that he backed aid to firms whose difficulties presented a systemic risk to the global economy.

"During a financial crisis, there are different types of support, with public funds, taxpayers, which are justified by the systemic risk," he said.

He also appealed for more EU coordination to offset similar crises in Europe.

"We need more coordinated action by supervisors than currently exists," he said.

"We must move forward faster, we cannot wait until a financial institution operating in seven or 10 countries of the European Union has problems such as those of Lehman Brothers or Bear Sterns," he said.

"We must accelerate coordination at a European level," he said.

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