The Clarets boss is working with a transfer kitty for the first time since taking the Turf Moor reins in October 2012, after steering the club into the Premier League.
"There have been occasions where it's been mooted around that I'm not interested in European players and that's absolutely not the case," he told the Lancashire Evening Telegraph.
"At my last club at Watford we didn't have the finance to recruit properly from Europe, and we're similar here now.
"We have a recruitment department, we've worked hard to build it over the last year if not 18 months.
"But to go into Europe that's increased costs in wages, increased personnel, and all of those costs have to be paid for.
"So we have to look at the English market first because we know it as a staff and our recruitment people know it.
"The odd one possibly might align from our contacts outside of Great Britain, but they still have to be appropriate for the needs of the club and to help move it forward.
"The reason why the European market has opened up to a lot of clubs is because they put a lot of resources into recruiting from that market and that means a lot of personnel on the ground watching game after game, player after player. We haven't been in a situation to be able to afford to do that so therefore it does narrow our market slightly."
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