HANOVER, Germany -- France and Germany are certain to overcome their differences on reforming the European Union's Common Agricultural Policy (CAP) and reach a joint position before next December's EU summit, German Chancellor Gerhard Schroeder said Saturday after talks with French President Jacques Chirac.

"On one hand France understands that we have to reduce the costs borne by Germany, and we understand that France cannot accept any change in the situation before 2006," Schroeder told a news conference.

His remarks were made after an informal summit with Chirac which was also attended by French Foreign Minister Dominique de Villepin and his German counterpart Joscka Fischer, AFP reported.

Chirac for his part stressed the two countries determination to go to the December summit, in Copenhagen, united and "hand-in-hand".

Berlin and Paris, traditionally seen as the engines behind EU integration, are at odds over the costly CAP, with net contributor Germany leading calls to slim down the program to help finance enlargement of the 15-nation bloc around 2004.

France, whose farmers are the largest beneficiaries of the scheme, argues that it should remain untouched until at least 2006, based on a road map laid out by EU leaders three years ago.

Chirac stressed the will of both countries to "give new impetus" to the 1963 Franco-Germany Elysee Treaty, which celebrates its 40th anniversary in Paris on January 23 next year.

The occasion will also be marked by ceremonies in Berlin where Chirac is scheduled to open the new French embassy at the Brandenburg Gate.

CAPTION France President Jacques Chirac smiles during his arrival at the house of German Chancellor Gerhard Schroeder on Saturday, Sept. 7, 2002 in Hanover, northern Germany.