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The Chancellor said both governments were absolutely determined that Europe must be competitive. Europe must be able to create jobs for its citizens and demonstrate its innovative abilities. Equally, they both want to make the internal market a success. National budget consolidation efforts should, however, be mirrored by similar moves at European level.

Angela Merkel called for Europe to stick together. "In a world with seven billion inhabitants, Europe’s only chance is for the 500 million people within the European Union at least to stick together. There are good reasons for us to do so – we share the same values: liberty, solidarity and justice."

Strengthening European institutions

Once again the Chancellor called for limited changes to the EU treaties so that the euro stability regulations can be better monitored. David Cameron and the Chancellor underscored the fact that they have agreed to work together to hammer out a solution by the EU summit meeting scheduled for early December in Brussels.

Angel Merkel said that "the European institutions need more binding authority and greater scope for enforcing their decisions". National governments too must genuinely meet their commitments. This will involve "limited changes to the treaties for the members of the euro zone, but only for these states".

The United Kingdom, said the Chancellor, has made it quite clear that it has difficulties to accept certain aspects of the status quo in the European Union legislation process. The British have their own ideas as to how competitiveness could be improved for the British side.

Financial transaction tax

Germany and the United Kingdom differ in their views on a financial transaction tax.  At global level both would like to see a levy of this sort introduced. At European level, no progress was made, reported Angela Merkel, referring to the idea of introducing a tax of this sort unilaterally within the EU.

David Cameron said that the financial services sector should make a fair contribution to resolving the crisis. He believes that a financial transactions tax only makes sense at global level, however.

In spite of the fact that the two sides differ, the two states are joined by friendship, stressed the heads of government. The Chancellor underlined the importance of the 27 member states of the European Union holding together. In the face of globalisation too, this is essential, she said.

Middle East

As well as the debt crisis talks focused on foreign-policy issues including Iran and Syria, as well as the Middle East. The Chancellor reported that the two governments are concerned about Iran’s nuclear programme and the situation in Syria. They respect the clear stance taken by the Arab League. Germany and the United Kingdom are pushing for a resolution to be passed by the United Nations Security Council.