Britain is a natural ally, says Merkel on ties with EU

German Chancellor Angela Merkel on Thursday indicated that she would back Prime Minister David Cameron in his reforms on Britain’s membership in the EU.

"Great Britain is, for me, a country that in many European policy areas pursues similar goals to us in Germany," Merkel told the Bundestag lower house of parliament on Thursday, according to Reuters.

"It is on many questions a natural ally."

Cameron is renegotiating the terms of Britain’s EU ties ahead of a referendum on its membership which he promised would be held by the end of 2017. The Prime Minister has expressed his desire for the Britain to remain in the EU but wants changes on policy including a crackdown on benefits to migrants.

Merkel said Britain is vital to supporting Europe’s economy but said reaching a deal on Cameron’s reforms would be “very challenging”.

"As a permanent member of the United Nations Security Council, Great Britain contributes significantly to the European Union's importance in the world," she said.

"With Europe facing demands like never before, that is of enormous importance."