The prime minister has held talks with the incoming president of the European Commission.

Tony Blair met Jose Manuel Durao Barroso over lunch in Number 10.

Ahead of the discussions, the prime minister's official spokesman indicated that measures to boost the European Union's economic competitiveness would top the agenda.

However, the talks came as Barroso faces a major political headache following a decision by MEPs to reject the nomination of one member of his Commission.

Italian nominee Rocco Buttiglione, who has been given the justice portfolio, had angered European parliamentarians with his strong anti-immigration stance and conservative Catholic views on homosexuals and the family.

In contrast, British nominee Peter Mandelson, a close ally of the prime minister, was widely viewed as having sailed through his committee grilling.

Meanwhile, Number 10 insisted Tuesday's talks would focus on issues of key concern for the government.

"Clearly they will want to address the issues which are on the Commission agenda, particularly issues such as the Lisbon reform agenda, regulation and so on," said the spokesman.

"I imagine it is also a chance for the prime minister to hear from Mr Barroso on what Mr Barroso thinks his priorities are for the new Commission and to wish him well as he sets off on what will be an important period in the Commission's history and in the EU's history."