Brussels - The finance ministers of the 15 countries which share the euro gathered in Nice on Friday to find ways of avoiding a recession and to prevent a repeat of the ongoing turmoil seen on the financial markets.

Ministers were set to discuss the latest economic forecasts of the European Commission, which on Wednesday cut its 2008 growth forecast for the eurozone to just 1.3 per cent.

Within the group, Germany and Spain are expected to experience a technical recession - which is defined as two consecutive quarters of economic contraction - while France and Italy will see their economies stagnate during the second half of the year.

But German Finance Minister Peer Steinbruck said upon his arrival in Nice that he did not believe there was a need for a US-style stimulus package in Europe.

"I am against a stimulus package for Europe or for Germany. My impression is that it would just mean burning money," Steinbruck said.

Instead, Europe's economies should improve their competitiveness through structural measures and should reduce their dependancy on energy imports, Steinbruck said.

The German position was backed by Luxembourg's Jean-Claude Juncker, the powerful chairman of the eurogroup.

Juncker's mandate as "Mister Euro" was extended by a further two years in a decision taken by ministers at the beginning of Friday's talks, EU diplomats told Deutsche Presse-Agentur dpa.

The eurogroup meeting was also being attended by EU Economic and Monetary Affairs Commissioner Joacquin Almunia and by the head of the European Central Bank, Jean-Claude Trichet.

It was to be followed by meetings extended to all European Union finance ministers, central bank governors and a number of top bankers.

The latter were expected to hear about EU plans to strengthen the supervision of Europe's financial institutions in the wake of the turmoil that has hit world markets since last year.

"A big part of the responsibility (for what has happened) has to be taken by bank managers," Steinbruck said. (dpa)