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David Cameron attacks 'ludicrous' EU budget increase Angela Merkel rejects UK and EU 'divorce' call ahead of talks
(about 11 hours later)
  
David Cameron has attacked a 'ludicrous' proposed rise in the EU budget in advance of talks with German Chancellor Angela Merkel. German Chancellor Angela Merkel has said she wants Britain to remain in the European Union, ahead of a crunch meeting with David Cameron.
The leaders are due to discuss the issue at Downing Street later. She was reacting to a call by UKIP leader Nigel Farage for an "amicable divorce" between Brussels and Britain.
Mr Cameron has indicated he wants a freeze and he is under pressure from some in his party to campaign for a reduction in real terms. Mr Cameron wants a freeze in the EU budget but is under pressure from Tory rebels and Labour to demand a cut.
Germany has indicated it is sympathetic to the UK's arguments but says some rise is necessary. Germany has indicated it is sympathetic to the UK's arguments but says some increase is necessary.
The talks between the two leaders come less than three weeks before a summit of EU member states at which they will try to work out the next set of long-term spending plans for Brussels. Mr Farage waded into the debate in the European Parliament, calling on Mrs Merkel to use her meeting with Mr Cameron to tell him tell him the time had come for "a simple amicable divorce" as feeling in the UK runs completely against the tide of the greater EU integration being promoted by the German leader.
Mrs Merkel hit back by saying: "I cannot imagine that the UK would not be part of Europe."
"I think it is also good for the UK to be in Europe," the German chancellor said, adding she would do "everything" to ensure this is the case.
The talks between Mr Cameron and Mrs Merkel come less than three weeks before a summit of EU member states at which they will try to work out the next set of long-term spending plans for Brussels.
Tough outcomeTough outcome
Speaking in Abu Dhabi, during his three-day visit to the Middle East, Mr Cameron said he would make a "very robust and strong argument" for an arrangement that forced the European Commission to limit its budget.Speaking in Abu Dhabi, during his three-day visit to the Middle East, Mr Cameron said he would make a "very robust and strong argument" for an arrangement that forced the European Commission to limit its budget.
He said: "They are proposing a completely ludicrous 100 billion euro increase in the European budget.He said: "They are proposing a completely ludicrous 100 billion euro increase in the European budget.
"I'll be arguing for a very tough outcome. I never had very high hopes for a November agreement because you have got 27 different people round the table with 27 different opinions.""I'll be arguing for a very tough outcome. I never had very high hopes for a November agreement because you have got 27 different people round the table with 27 different opinions."
Last week the government was defeated in a Commons vote on the EU budget after 53 Conservative MPs defied their party over the issue.Last week the government was defeated in a Commons vote on the EU budget after 53 Conservative MPs defied their party over the issue.
Tory rebels joined with Labour to pass an amendment calling for a real-terms cut in spending between 2014 and 2020.Tory rebels joined with Labour to pass an amendment calling for a real-terms cut in spending between 2014 and 2020.
The amendment was not binding on ministers, but was seen as a blow to David Cameron's authority on Europe ahead of the EU budget summit.The amendment was not binding on ministers, but was seen as a blow to David Cameron's authority on Europe ahead of the EU budget summit.
Signs of exasperationSigns of exasperation
Mr Cameron said: "I feel I am in there fighting for Europe's taxpayers, particularly British taxpayers.Mr Cameron said: "I feel I am in there fighting for Europe's taxpayers, particularly British taxpayers.
"We have a rebate, we are keeping that rebate. But over and above that rebate I also want to see a good budget outcome for the UK.""We have a rebate, we are keeping that rebate. But over and above that rebate I also want to see a good budget outcome for the UK."
The BBC's correspondent in Berlin, Stephen Evans, says many in Angela Merkel's parliamentary party show signs of exasperation at what they see as the British hard-line.The BBC's correspondent in Berlin, Stephen Evans, says many in Angela Merkel's parliamentary party show signs of exasperation at what they see as the British hard-line.
Any deal agreed by EU leaders later this month would have to be put to the Commons for approval.Any deal agreed by EU leaders later this month would have to be put to the Commons for approval.
Mr Cameron has said he would be prepared to veto any unacceptable proposal - which would mean that a deal would not go ahead.Mr Cameron has said he would be prepared to veto any unacceptable proposal - which would mean that a deal would not go ahead.
If no agreement is reached by the end of next year the 2013 budget will be rolled into 2014 with a 2% rise to account for inflation.If no agreement is reached by the end of next year the 2013 budget will be rolled into 2014 with a 2% rise to account for inflation.