Italian PM Monti to meet EU's Barroso at 2000 GMT

(BRUSSELS) - Italian Prime Minister Mario Monti is to meet with European Commission President Jose Manuel Barroso at 2000 GMT on Tuesday, with the economy high on the agenda, a Commission spokesman said.

Monti and Barroso were to have an "informal discussion to take stock of the economic situation" over coffee at the Commission's headqurters in Brussels, Olivier Bailly told a news briefing.

Barroso is in a group with European Union President Herman Van Rompuy, Eurogroup chair Jean-Claude Juncker and European Central Bank chief Mario Draghi that is drawing up a report on future eurozone integration.

The plan is expected to include limited changes to the related EU treaty, with two sets of conclusions to be delivered in October and December.

A former EU commissioner, Monti has become a go-between for stable eurozone members like Germany which are reluctant to increase bailout funding and weaker economies burdened by stiff borrowing rates such as Italy.

The talks take place on the same day that Van Rompuy was meeting Spanish Prime Minister Mariano Rajoy in Madrid.

Economist believe Spain will need financial aid from eurozone partners over and above an agreed 100 billion euros ($125 billion) in loans to recapitalise its broken banking sector.

Meanwhile, all European leaders are also tracking developments in Greece ahead of an October 18-19 summit in Brussels.

Before then, eurozone and EU finance ministers meet informally in Cyprus on September 15 and 16, with formal Eurogroup talks scheduled for October 8 in Luxembourg.

Monti is also to meet German Chancellor Angela Merkel on Wednesday in Berlin and host a visit by French President Francois Hollande to Rome on September 4.