France and Germany plot closer ties for EU

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Germany and France have agreed a pact to bring the Eurozone closer together without the need for treaty change in a potential blow to Britain's plans for EU reform.

Angela Merkel, the German Chancellor, and Francois Hollande, the French President, have reached an agreement to create a closer union within the bounds of existing EU treaties.

The pact, which is due to be presented at an EU summit next month, could limit David Cameron's room for manoeuvre as he tries to claw back powers from Brussels ahead of a referendum on Britain's membership..

It came as Mr Cameron last night hosted Jean-Claude Juncker, the President of the European Commission, for dinner at Chequers, his country retreat.

The Prime Minister told Mr Juncker that the British people are "not happy with the status quo" and believe that the EU needs to change ahead of a referendum on Britain's membership by the end of 2017.

Mr Juncker said that he wants to help Britain to "find a fair deal" and that further discussion with other European leaders would be needed to find the "best way forward".
The meeting marks the start of a week of intense negotiations for Mr Cameron as he seeks to kick-start negotiations with Europe