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Eurozone crisis to dominate Cameron talks with Merkel Eurozone crisis to dominate Cameron talks with Merkel
(40 minutes later)
  
David Cameron is to hold talks with Angela Merkel on the European debt crisis, which is causing sharp differences between the UK and Germany.David Cameron is to hold talks with Angela Merkel on the European debt crisis, which is causing sharp differences between the UK and Germany.
They have both been pressing for action to stabilise the euro, as Italy and Greece implement austerity measures.They have both been pressing for action to stabilise the euro, as Italy and Greece implement austerity measures.
But there are tensions over the idea of so-called Robin Hood financial transactions tax, a move the UK has been resisiting. But there are tensions over the idea of so-called Robin Hood financial transactions tax, a move the UK has been resisting.
And Germany is pressing for closer EU integration, which the UK opposes.And Germany is pressing for closer EU integration, which the UK opposes.
BBC Europe editor Gavin Hewitt said Mr Cameron would arrive in Berlin at a time when some of Chancellor Merkel's MPs have criticised Britain for not supporting Europe in its hour of need. She has admitted there are tensions between them. BBC Europe editor Gavin Hewitt said Mr Cameron would arrive in Berlin at a time when some of Chancellor Merkel's MPs have criticised Britain for not supporting Europe in its hour of need.
She has admitted there are tensions between them, but despite their differences, both sides are keen to say there is no rift.
Mrs Merkel and the Mr Cameron have very different visions for Europe. She wants the eurozone to be much more closely integrated, while David Cameron is not prepared to see British influence decline if it becomes a two-speed Europe, our correspondent added.Mrs Merkel and the Mr Cameron have very different visions for Europe. She wants the eurozone to be much more closely integrated, while David Cameron is not prepared to see British influence decline if it becomes a two-speed Europe, our correspondent added.
Overshadowing the meeting is likely to be the fear the debt crisis is spreading, in recent days core countries like France have joined Spain and Italy in seeing its borrowing costs rise.Overshadowing the meeting is likely to be the fear the debt crisis is spreading, in recent days core countries like France have joined Spain and Italy in seeing its borrowing costs rise.
Sovereignty issueSovereignty issue
Mrs Merkel's governing party, the CDU, wants the EU's Lisbon Treaty to be amended to sanction a move towards closer fiscal union within the eurozone and says negotiations should begin at once.Mrs Merkel's governing party, the CDU, wants the EU's Lisbon Treaty to be amended to sanction a move towards closer fiscal union within the eurozone and says negotiations should begin at once.
Senior CDU figures have suggested that if all 27 EU countries cannot agree, the change should be approved by those countries which use the single currency - of which the UK is not a member.Senior CDU figures have suggested that if all 27 EU countries cannot agree, the change should be approved by those countries which use the single currency - of which the UK is not a member.
Speaking earlier this week, Mrs Merkel said the EU needed more powers to ensure budget discipline among member states and Germany was willing to give up sovereignty in some areas to facilitate this.Speaking earlier this week, Mrs Merkel said the EU needed more powers to ensure budget discipline among member states and Germany was willing to give up sovereignty in some areas to facilitate this.
In contrast, Mr Cameron is pushing for the UK to take powers back from Brussels in pursuit of what he says is his goal of a more flexible and diverse Europe.In contrast, Mr Cameron is pushing for the UK to take powers back from Brussels in pursuit of what he says is his goal of a more flexible and diverse Europe.
In the event of eurozone members moving closer together, the UK has said it wants safeguards that those outside the single currency area will not be disadvantaged in terms of access to the single market and regulations on key sectors like finance.In the event of eurozone members moving closer together, the UK has said it wants safeguards that those outside the single currency area will not be disadvantaged in terms of access to the single market and regulations on key sectors like finance.
But there are concerns Germany is determined to push ahead with a tax on financial transactions, known as the Tobin Tax, in an effort to regulate the markets.But there are concerns Germany is determined to push ahead with a tax on financial transactions, known as the Tobin Tax, in an effort to regulate the markets.
'Economic suicide''Economic suicide'
The idea, also backed by French President Nicolas Sarkozy, has caused alarm in the UK amid concerns that the US, China and other major economies may not come on board and the City of London would be seriously damaged if the tax only applied across Europe.The idea, also backed by French President Nicolas Sarkozy, has caused alarm in the UK amid concerns that the US, China and other major economies may not come on board and the City of London would be seriously damaged if the tax only applied across Europe.
British ministers reacted angrily to recent remarks by a senior member of Mrs Merkel's party, Volker Kauder, who suggested the UK may need to make concessions on the issue of the tax and must show more collective responsibility in Europe.British ministers reacted angrily to recent remarks by a senior member of Mrs Merkel's party, Volker Kauder, who suggested the UK may need to make concessions on the issue of the tax and must show more collective responsibility in Europe.
Chancellor George Osborne said a Europe-only tax would be "economic suicide" while Business Secretary Vince Cable said the UK would not "fall for" such an idea, which he said had nothing to do with the urgent problems facing Europe on productivity and employment.Chancellor George Osborne said a Europe-only tax would be "economic suicide" while Business Secretary Vince Cable said the UK would not "fall for" such an idea, which he said had nothing to do with the urgent problems facing Europe on productivity and employment.
Ahead of Friday's meeting, Labour's Chris Bryant - a former Europe minister in the last government - said the coalition was "not managing to get its argument across" and was instead making "injudicious" comments about other countries' economies.Ahead of Friday's meeting, Labour's Chris Bryant - a former Europe minister in the last government - said the coalition was "not managing to get its argument across" and was instead making "injudicious" comments about other countries' economies.
"I think we should have been doing much more to bind together a caucus of Britain, France, Germany to provide much more leadership on this issue," he told BBC One's Question Time."I think we should have been doing much more to bind together a caucus of Britain, France, Germany to provide much more leadership on this issue," he told BBC One's Question Time.