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"The issue is not about spending more or less, but spending more intelligently," Barroso said, urging EU countries to put their resources together and back policy priorities.
"Pooling money at the European level allows member states to cut their costs, avoid overlaps and get a better return on their investment," he said.
Last but not the least, Barroso said, the EU should pull its weight on the global stage and translate its combined economic power into political influence.
"As the strategic partnerships of the 21st century emerge, Europe should seize the chance to define its future," he said. "I am impatient to see the Union play the role in global affairs that matches its economic weight."
Barroso urged EU member states to speak in one voice in dealing with international affairs.
"To be effective on the international stage, we need the weight of the European Union. Size matters, now more than ever," he said.
With the European External Action Service (EEAS) ready to be deployed, the EU now has the means to match its aspirations, he said.
Established in accordance with the 2007 Lisbon Treaty, the EEAS is intended as a diplomatic corps that will oversee not only Europe's aid and humanitarian budget but also relations with countries around the world.