German Chancellor Angela Merkel and European Commission President José Manuel Barroso have stressed the need for stronger co-ordination of economic policy in the eurozone.
Following a meeting in Berlin last night, a German spokesman said Ms Merkel and Mr Barroso had exchanged views on the euro's situation, with emphasis on the need to reduce debt and improve competitiveness in the EU.
However, no mention was made of disagreement about the EU's bailout fund, which Mr Barroso wants increased despite German opposition.
Mr Barroso had warned ahead of the dinner with Chancellor Merkel that the currency bloc needed to avoid 'procrastination', which was seen as a reference to Berlin's outspoken rejection of his proposals to increase the European Financial Stability Facility.
He wants the €440bn fund, which was set-up last year after the Greek debt crisis and already tapped by Ireland, to be beefed up to provide stronger defences for the euro.
But Ms Merkel and Finance Minister Wolfgang Schaeuble rule out increasing the headline sum, wary in a year with seven regional elections in Germany of exacerbating German taxpayers' annoyance at having to fund bailouts for overspending eurozone partners.
They are focusing instead on finding ways to maximise the full capacity of the EFSF, whose lending clout is really only about €250bn because of the guarantee system required to maintain its AAA credit rating.
The EU's top economic official, Olli Rehn, was also in Germany yesterday, attempting to persuade Ms Merkel's junior coalition allies, the Free Democrats, to soften their opposition to increasing the fund.
FDP leader Guido Westerwelle, the Foreign Minister and Deputy Chancellor suffering a slump in popularity, said after meeting Mr Rehn that he was still not convinced the eurozone bailout fund should be expanded.
'To discuss expanding the rescue fund today, when only 10% has been used, is not convincing,' Mr Westerwelle said.
