18/11/2011 Berlin/Germany (KMC) - David Cameron is to fly to Berlin today to hold talks with German Chancellor Angela Merkel amid rising tensions over how to handle the Eurozone crisis.
Both leaders have different opinions on the direction of the European Union, with Merkel pushing for closer integration while Cameron is wary of Britain losing its influence because it does not use the single currency.
Cameron and the French President Nicolas Sarkozy also want the European Central Bank (ECB) to be allowed to bail out struggling EU countries, something which Merkel is resisting as Germany already backs up almost 30 per cent of the ECB financially.
There are also concerns in Britain that Germany will push ahead with a tax on financial transactions in an effort to regulate the markets, something which the UK government believes could amount to economic suicide for Britain if implemented.
Also likely to underline the meeting will be the fear that the Eurozone crisis is spreading after yesterday saw both France and Spain’s borrowing costs rise, while Italy and Greece continue to implement austerity measures.