Germany's Angela Merkel and European Commission chief Jose Manuel Barroso have stressed the need for tighter co-ordination in the euro zone, but made no mention of disagreement about the euro zone bail-out fund.
The two met for dinner beyond the reach of the media near Berlin and issued only a brief statement about their meeting, which came after a successful debut bond auction by the euro zone rescue fund.
Merkel's spokesman Steffen Seibert said in a statement that the two had 'exchanged views about the situation of the euro'.
'At the centre of it were the need to reduce debt, the future stability and growth pact and measures to improve the competitiveness of the European Union,' said the statement.
The chancellor and commission chief agreed that 'stronger co-ordination of economic policy in the euro zone is of the utmost importance'.
Barroso had warned ahead of the dinner with Merkel that the currency zone needed to avoid 'procrastination', which was seen as a reference to Germany's outspoken rejection of his proposals to increase the European Financial Stability Facility (EFSF).
He wants the €440 billion 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 Merkel and Finance Minister Wolfgang Schauble 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 bail-outs for euro zone partners.
They are focusing instead on finding ways to maximise the full capacity of the EFSF, whose lending clout is really only about €250 billion because of the guarantee system required to maintain its triple-A credit rating.
The EU's top economic official, Olli Rehn, was also in Germany yesterday, attempting to persuade Merkel's junior coalition allies, the Free Democrats (FDP), to soften their opposition to increasing the fund.
FDP leader Guido Westerwelle, the foreign minister and deputy chancellor, said after meeting Rehn that he was still not convinced the euro zone bail-out fund should be expanded.
