European Commission president Romano Prodi has said that the European Union could not back moves to give state aid to the troubled Fiat group, according to the Financial Times (FT).

This was despite indications that the Italian government led by Silvio Berlusconi was considering the idea, the paper added.

"I don't think we can take any special measures," Prodi reportedly said, according to the FT.

"There have been many industrial sectors ... that have confronted problems of scaling down and transformation and the car industry has been one of them," Prodi added, according to the FT report.