The European Union will avoid recession, according to José Manuel Barroso, the outgoing president of the European Commission.
Speaking with CNBC's "Squawk on the Street" on Monday, Barroso said that the commission fully supports the European Central Bank's actions to stimulate the region's economy, emphasizing that it should do everything it can. Still, Barroso said the European economy is doing well compared to its past.
"It's true that the growth in the real economy is going slower than expected, but let's not forget where we come from," he said. "We avoided the financial instability, we avoided the sovereign debt crisis. I think that the existential crisis regarding the euro is now over."
Despite these victories, Barroso said the ECB "should use all the instruments available to counter the risk of deflation—that's certainly worrying development recently."
Barroso, whose second five-year term is due to end on October 2014, has been cautious about Europe's recovery. He told CNBC in January that the region's high levels of unemployment mean there is still work to be done.
Europe's economy has exhibited further malaise since then, posting a manufacturing purchasing managers index (PMI) figure of 50.7 in August—a 13-year low. Even the normally strong Germany has seen an economic slowdown.
Barroso, who leads the European Union's executive branch, has played a pivotal role in coordinating sanctions against Russia after its actions in Ukraine. Last month he appeared with Ukrainian President Petro Poroshenko in Brussels to threaten further action against Moscow—sanctions which have since been announced.