The Prime Minister spoke to Chancellor Merkel today. A Downing Street spokesperson said:
The Prime Minister spoke to Chancellor Merkel today, ahead of this week’s European Council.
They discussed the provisions on banking union and agreed that further work is needed before agreement can be reached. Chancellor Merkel recognised the need to ensure that the agreed measures respect the integrity of the single market.
They also looked ahead to the negotiations on the EU multi-annual budget and agreed that the UK and Germany should work together to ensure that the next EU budget is realistic and reflects the tough spending decisons being made in EU member states. They plan to discuss this further during a planned visit from Chancellor Merkel to Downing St in early November.