PM: EU budget rise is 'wrong'

German Chancellor Angela Merkel said it was important that Europe spends its money effectively, but would not be drawn on whether she supports a budget freeze. Speaking through an interpreter she said:

"I beg leave to first discuss this with the Prime Minister. What is in my interests is that we use our money effectively."

"Not all of the expenditure that has been earmarked has been used with great efficiency... We need to address that."

Prime Minister David Cameron said this evening he believed it would be wrong for the European Union budget to continue to rise. Speaking at a joint press conference with the German premier Angela Merkel he said:

"I believe it would be wrong for the European budget to increase at a time when we are having to make difficult decisions not just in Britain but all over the European Union to get our budgets back to balancing."

David Cameron said he would fight for "a good deal" for taxpayers on proposed changes to the European Union budget, as he welcomed German Chancellor Angela Merkel to Downing Street for talks.

Mr Cameron said the two leaders had a lot of common ground, saying they were "both believers that European countries have to live within their means, as well as the European Union".

The German Chancellor Angela Merkel has arrived at Downing Street for talks with the Prime Minister ahead of negotiations on a potential rise in the EU Budget.

A Downing Street spokeswoman refused to go into detail about what the Prime Minister's negotiation position will be with the German Chancellor Angela Merkel.

Speaking at a regular Westminster media briefing, she said:

In less than three weeks, a crunch EU summit will be held to determine the next long-term spending plans for Brussels.

Prime Minister David Cameron has said he will make a "very robust and strong argument" for a deal in Britain's interests and that forces the Commission to match cost-cutting in member states.

Mr Cameron said:

"Every other country in Europe has had to take difficult decisions. We cut ministers' pay, froze it for a parliament, reduced the size of the civil service, slashed the number of quangos, cut billions out of central budgets.

"We are not doing that in Britain to see the European Union doing nothing similar itself, so we will be taking a very tough approach."

British taxpayers should not have to foot the bill for the problems of the eurozone, David Cameron has said ahead of a meeting with the German Chancellor Angela Merkel.

Prime Minister David Cameron and the German Chancellor Angela Merkel will hold talks at Downing Street this evening.

It comes less than three weeks before a crunch summit to determine the next long-term spending plans for Brussels.

Mr Cameron has said British taxpayers should not have to foot the bill for the problems of the eurozone.

Speaking ahead of the meeting, he said:

"I look forward to my conversation with Angela. We always have good, frank, open conversations and I will be making that argument with vigour.

"I understand the difficulties of the euro but the European Union budget is for all 27 members of the EU and we shouldn't be using the European Union budget to make up for difficulties and problems in the eurozone."