European Council president Herman Van Rompuy has called a summit of EU leaders for May 23rd in Brussels to discuss growth.

Mr Van Rompuy announced the “informal dinner” on his Twitter account today. It will take place just eight days before Ireland votes on the fiscal treaty, which seeks to strengthen fiscal discipline and toughen the enforcement of EU budgetary rules.

The agenda is expected to focus on how the EU can kick-start growth across the 27-country union, and especially the 17 countries in the euro zone, while maintaining efforts to cut budget deficits and debt.

The summit will also lay the ground for another meeting on June 28th and 29th when leaders are scheduled to take formal decisions on their growth and budget consolidation strategy.

European Commission president Manuel Barroso said today – in a speech marking Europe Day tomorrow – that a twin track approach of stability and growth had been at the heart of the area’s response to the fiscal crisis.

Germany today said it was ready to talk with France about spurring economic growth in Europe so long as president- elect Francois Hollande holds to his commitments in the fiscal pact, the chief whip for chancellor Angela Merkel's party said.

Peter Altmaier, deputy Christian Democratic Union floor leader, rejected a campaign pledge by Mr Hollande to reopen the budget treaty, saying the pact was signed by 25 of the European Union's 27 leaders in March and can not be renegotiated.

He also rebutted Mr Hollande's call for joint debt issuance, saying "nobody in Europe is talking about euro bonds".

"My message is: we can talk about many things that stimulate growth in the end, on condition that the basic decisions in the fiscal pact are honored and that the policies of budget consolidation remain unchanged," Mr Altmaier told reporters in Berlin today.

His comments underscore the horse-trading under way between Europe's two biggest economies as they try to re-establish a common front on fighting the debt crisis after Nicolas Sarkozy lost the election.

Dr Merkel, who publicly backed Mr Sarkozy, is under pressure from Mr Hollande and anti-bailout parties elected in Greece the same day to ease her insistence on austerity and focus on creating growth.

Dr Merkel called Mr Sarkozy yesterday evening to thank him for his "close and trustworthy" collaboration in combating the crisis, the German government said in an e-mailed statement.

She and Mr Sarkozy are convinced "Germany and France will continue to bear the responsibility to promote a united Europe through working together."

Italian prime minister Mario Monti has telephoned Mr Hollande to congratulate him on his victory. Mr Monti and Mr Hollande said they would seek to work closely together, according to the statement from the Italian’s office.

Mr Monti also spoke with Dr Merkel, Mr Van Rompuy and British prime minister David Cameron about European policy in light of the outcome of the French and Greek elections.

"It is crucial for Europe to adopt with urgency concrete measures for growth," Mr Monti said in the statement.

The message that the fiscal treaty would be implemented was reinforced by German finance minister Wolfgang Schaeuble in an interview broadcast late yesterday on ARD television. "The commitments on deficit reduction that every country in Europe has undertaken will be upheld also by France," he said. "I have absolutely no doubt about that."

Agencies