Angela Merkel warns UK will struggle alone if it turns against EU

The Centre for European Reform has calculated the UK contribution would be £7.4bn a year if the budget were frozen, while the German or commission plans would result in an additional £400m-550m a year "at most". John Springford, the CER's research fellow, said: "If Cameron brought down the negotiations over such a small sum, the UK would find itself pressed further into the margins of Europe. It would do better to compromise on the overall size of the budget and negotiate for it to be spent more wisely."