Chirac, Schroeder and Blair focused on economic challenges

Tony Blair, Jacques Chirac and Gerhard Schroeder made the call after talks focusing on efforts to make Europe the world's most competitive economy.

The mini summit prompted complaints from other EU countries, who fear the big three want to dictate decisions.

But the leaders said it was right to pool their ideas.

BBC correspondent Allan Little in Berlin said the trio wanted to set the agenda but there was a danger resentment about the summit could cause divisions, not unity.

The three leaders were expected to focus on foreign affairs, including the situation in Iraq and the draft European constitution, at an evening dinner following the day's business in Berlin.

The critical question... is how do we achieve social justice and prosperity in a completely different world and European economy in the 21st century Tony Blair

But Chancellor Schroeder said the focus of the afternoon talks had been on promoting innovation through more research and development and on adapting social security systems to the changing world.

Afterwards, the three men signed a joint letter calling for an EU economic reform "tsar" to lead a push to make Europe more globally competitive.

They said a new European Commission vice president should be charged with driving through structural reforms in the labour markets and other parts of the European economy.

Mr Blair told reporters: "It matters to us that the European economy functions well.

"It's important that we make the changes necessary to give our people the best chance of still having jobs and security and rising living standards in the new world in which we are living."

The prime minister said the mini summit was timely with an EU-wide summit on economic reform being held in March.

He said the plans agreed in Berlin would help "make sure we get some impulsion into the whole process of economic reform".

'Mess' predictions

There have been fears the EU has slipped behind on its 2000 target of becoming the world's most competitive skilled economy by 2010.

The prime minister said in a world of rapid change, the EU had to be able to adapt equally quickly and equip workers to do the same.

On Tuesday, Italian prime minister Silvio Berlusconi said any efforts by the trio to dictate to the rest would cause "a mess".

Portugal is among those saying the group should only make suggestions, not decisions.

But Trade Secretary Patricia Hewitt, one of the British ministers at the talks, told BBC Radio 4's Today programme: "There is clearly a fear that what we're trying to do here is create some kind of inner leadership to stitch up everything together.

"That is not what we are doing at all."

Ownership?

Foreign Secretary Jack Straw said he had spoken to his Polish, Spanish and Italian counterparts to reassure concerns and said such talks were normal.

Ahead of the summit, European Liberal Democrat leader Graham Watson MEP said the EU would only work if all countries felt a sense of ownership.

But Pat Cox, president of the European Parliament, said people should focus less on the attendance list and more on the results of the meeting.

Conservative leader Michael Howard last week called for an EU where nations combined on some issues and opted out on others.