The European Commission today dismissed a suggestion that Peter Mandelson might have behaved inappropriately by attending a Caribbean cocktail party aboard the yacht of Paul Allen, the billionaire co-founder of Microsoft.

Mr Mandelson, the EU Trade Commissioner, attended the New Year drinks party during a four-day private holiday on the island of St Bart's that he tacked on to an official trip to the region in early January.

But Francoise Le Bail, the EU spokeswoman, said that the former Labour Cabinet minister was only on the yacht for an hour, and although he met Mr Allen he did not have a conversation with him. Mr Allen's 414-ft yacht, the Octopus, is believed to be the world's largest private boat.

"Having a drink with somebody surrounded by 100 people is not the basis for a conflict of interest," Mme Le Bail said.

Mr Allen is no longer involved in the management of Microsoft but remains a major shareholder in the firm, which was hit by a record £355 million fine by the EU last March for abusing its dominant position in the software industry.

The issue of disclosure by the EU's 25 commissioners was raised by Nigel Farage, an MEP for the UK Independence Party, who asked them all in a parliamentary question for details of hospitality received since they were nominated to their posts.

All the commissioners refused, saying they could make their own decisions as to what constituted a conflict of interest.

News of Mr Mandelson's four day break was however leaked to a German newspaper, forcing the Commission to confirm that Mr Mandelson had tacked on the holiday to his official trip to the Caribbean. His office insisted that he was staying with longstanding friends, that there was no conflict of interest, that no public cost was incurred and that he had complied with the European Commission code of conduct.

Mr Mandelson himself dismissed the row as "Brussels tittle-tattle".

Today, however, the EC President, Jose Manuel Barroso, offered to give MEPs a written explanation of his own holiday last August aboard of the yacht of a Greek tycoon.

Senhor Barroso acknowledged this week that he and his family spent a six-day vacation last August as guests of Spiros Latsis, a Greek shipping, oil trading and banking magnate. But he said Mr Latsis was an old friend and there was no conflict of interest with his EU duties.

Senhor Barroso telephoned Josep Borrell, parliamentary president, from Moscow today to explain the circumstances of the holiday, which has drawn criticism in the European press.

"The president had the opportunity to talk to President Borrell ... and explain to him what the story was and clarify what the details of the story are," Mme Le Bail said. "It is clear that the president is at the disposal of the parliament if the parliament decides on something more and something useful to do."

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