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BRUSSELS - The EU executive said on Sunday it was setting up a group to assess the economic impact of the ash cloud and said any steps taken across the European Union needed to be properly coordinated.

"The volcanic ash cloud has created an unprecedented situation," European Commission President Jose Manuel Barroso said. "I have asked (EU Transport Commissioner Siim) Kallas to coordinate the Commission's response and fully assess the impact of the situation created by the volcanic ash cloud on the economy, and the air travel industry in particular.

"It is important that all measures to be considered are coordinated at the European level."