Germany backs Labour's decision to borrow billions to fund tax cuts in a bid to boost the UK economy, Foreign Secretary David Miliband has insisted.
Gordon Brown has said European leaders have agreed to back an "ambitious and co-ordinated" recovery plan to help their economies through the downturn.
It comes after a second German politician attacked the policy.
The package, negotiated at an EU summit in Brussels, will see 200bn euros of funding - equivalent to 1.5% of the EU total output, poured into economies.
Steffan Kampeter, of Chancellor Angela Merkel's CDU party, said moves to raise debt "were a failure of Labour policy".
Mr Brown said measures would include "judicious" tax cuts and acceleration of public spending projects.
Finance minister Peer Steinbruck earlier branded UK policy "crass" - but Mr Miliband said Mrs Merkel and other EU nations supported the move.
The agreement "answered" criticism that the EU was not united on the issue.
'Clear response'
He said the UK had laid out a "very clear economic response" to the economic downturn and its decision to pump money into the economy through tax cuts and public spending was "shared by every serious economist around the world".
He said the recent criticism by German politicians stemmed from internal German political factors ahead of next year's elections.
Mr Brown and Angela Merkel are currently in Brussels where EU leaders are trying to agree proposals to inject 200bn euros (£177bn) into European economies to help deal with the downturn.
Mr Miliband said the two leaders were "working very closely on an economic recovery plan" for the whole of Europe.
Although different countries faced different economic challenges, he expected the EU leaders to show "important unity and progress" by throwing their weight behind such a plan.
"What you will see is from Mrs Merkel as well as from Gordon Brown a very clear statement at the end of this council setting out their support for a European recovery package which includes a strong fiscal stimulus which is being supported right across Europe," he said.
'Lecturing UK'
The Tories have said criticism from two leading German figures of Gordon Brown's economic policies show the prime minister's claims to have led the world in responding to the downturn are hollow.
Mr Kampeter speaks on economic matters for the right-wing CDU, while Mr Steinbruck is from the Social Democrat Party. Both parties are part of the coalition government.
Mr Kampeter said: "Peer Steinbruck's comments have nothing whatsoever to do with internal German politics, as Prime Minister Brown has suggested.
"In questioning the British government's approach, Peer Steinbruck is exactly expressing the views of the German Grand Coalition.
The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy Steffen Kampeter EU leaders focus on climate deal
"After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can't now expect us to share in its losses.
"The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy."
In a magazine interview, Mr Steinbruck had questioned Britain's decision to cut VAT and raise the national debt to record levels by following the high public spending model of economist John Maynard Keynes.
"The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking," he said.
He later sought to play down his comments, saying: "There is no question of criticising our British friends. Nothing is further from our minds."
'Clear support'
Mr Brown had responded to the article by saying the German government had just announced a fiscal expansion so it could invest in public works.
He said: "I do not really want to get involved in what is clearly internal German politics here, because they have a coalition in Germany with different political parties."
The prime minister's official spokesman added: "Clearly there is a debate taking place in Germany about the nature of any additional fiscal stimulus measures.
"Chancellor Angela Merkel made it clear that she supports the EU fiscal stimulus package."
