Euro Zone's Big Four Agree On ?130 Billion Growth Package, Split On Bonds

(Reuters) - German Chancellor Angela Merkel resisted pressure on Friday for common euro zone bonds or a more flexible use of Europe's rescue funds but agreed with leaders of France, Italy and Spain on a € 30 billion ($156 billion) package to revive growth.

After four-way talks in Rome's Renaissance Villa Madama, Italian Prime Minister Mario Monti said the European Union should adopt pro-growth measures worth about 1 percent of the region's gross domestic product at a crucial summit next week.

But the three others made no perceptible progress in pushing Merkel, who leads Europe's most powerful economy and the main contributor to its rescue funds, toward mutualizing Europe's debts or using existing bailout resources more flexibly.

Growth can only have solid roots if there is fiscal discipline, but fiscal discipline can be maintained only if there is growth and job creation, Monti told a joint news conference after talks that lasted just an hour and 40 minutes.

The measures, already in the works in Brussels, include increasing the European Investment Bank's capital, redirecting unspent EU regional aid funds and launching project bonds to co-finance major public investment programs. No new steps were announced on Friday.

Merkel made no mention of any move toward mutualizing past euro zone debt or new borrowing.