Eurozone finance ministers agreed on Friday to improve economic coordination to prevent recurrence of the Greek debt crisis.

"We need to reinforce economic governance in Europe. There is a pressing and urgent need to strengthen economic policy coordination and countries' budgetary surveillance," European Union (EU) Economic and Monetary Affairs Commissioner Olli Rehn told reporters after informal talks with eurozone finance ministers in Madrid on Friday.

Rehn said eurozone countries should work toward three objectives for the sake of more economic coordination in the single currency club, namely rigorous implementation of the EU's budgetary rules, deepening of economic surveillance, and set-up of a permanent mechanism to handle any future Greece-like crisis.

In order to prevent countries from running a deficit above the EU limit and heading into trouble, he said, national budget plans should be checked first by the European Commission, and then discussed by eurozone finance ministers before they are presented to national parliaments for approval.

Rehn said the economic coordination should go beyond budgetary discipline and deal with macroeconomic imbalance in the region.

"The most urgent need is that in countries with weak competitiveness and big current account deficits as we have seen in the case of Greece and other countries as well, indeed corrective actions must be taken" to restore competitiveness and build basis for sustainable growth, he said.

Meanwhile, Rehn said countries with large current account surplus should also do their part for economic balance in the eurozone, obviously referring to Germany, the largest EU economy and the world's second largest exporter.

Germany came under increasing pressure from some of its EU partners, notably France, to boost domestic demand rather than rely on exports.

Rehn said economic rebalance in the eurozone does not mean that countries like Germany should compromise its exports, but take measures to stimulate its own demand.

Luxembourg's Jean-Claude Juncker, who chairs the meeting of eurozone finance ministers, echoed Rehn's proposals.

"I support with 100 percent enthusiasm the proposals of Commissioner Rehn," he said.

Juncker said the eurozone finance ministers also agreed to set up a permanent aid mechanism for countries that may be in the future in a similar trouble like Greece.

"We have agreed that it is necessary to set up a permanent crisis mechanism," he said, without giving details.