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David Cameron and Angela Merkel have acknowledged differences over the eurozone crisis but stressed they have the "same plan" for European growth.
Mrs Merkel said they did "not make progress" on plans for a European financial transactions tax. But Mr Cameron, who argues that any such tax must be global, said they were "good friends" who wanted Europe to succeed.
Other areas of disagreement include whether the European Central Bank should be allowed to bail out struggling countries - something Mrs Merkel is resisting.
Mrs Merkel's CDU party 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. A treaty change could prompt calls from Mr Cameron's Conservative MPs for a UK referendum - a "referendum lock" was introduced in the UK's European Union Act 2011, aimed at preventing major transfers of power from London to Brussels.