Cameron Merkel to meet in Berlin today

David Cameron and Angela Merkel are scheduled to meet in Berlin today and the British PM plans to lend support for strengthening the economic union in the eurozone in return for safeguards to protect the City of London from European legislation, the Financial Times said.

However, the German leader's political ally Volker Kauder has added to tensions with his public statement declaring Germany to be in the EU driving seat and warning that Britain could not block a transaction tax.

The European Commission has admitted the levy would hit 500,000 jobs, the fallout of which, Cameron says, would take a toll on the City of London and drive financial business out of Europe. Cameron is agrreable to such a tax, if it was applied globally to create a level playing field.

Germany and France are pushing for the tax and are ready to go ahead with it just within the eurozone if required which has raised fears of a "two-tier" EU.

Regarding single currency, Cameron said last week that if the leaders of the eurozone wanted to save the euro then "they - together with the institutions of the eurozone - must act now".

According to Bernd Euler, chief financial officer of technology company Siemens, who spoke to Sky News everything needed to be done to "save" the euro.