Merkel: British EU immigration cap would have price

GETTYShe told an audience of cheering supporters that Germany and France will drive through reforms

GETTYShe told an audience of cheering supporters that Germany and France will drive through reforms

To that end, Ms. Merkel said she would be ready to discuss changes to the European Union treaty to strengthen the bloc "if it makes sense".

"More often than not, the subject of treaty change was a French taboo".

The two governments will hold a meeting in July to discuss key issues further.

Emmanuel Macron, 39, stood alongside the German chancellor on his first foreign visit the day after his inauguration as both proclaimed that they were ready to change the EU's ruling treaties if necessary to strengthen the organisation after Brexit.

Macron's charm offensive went beyond symbolism, on Monday he appointed France's former Ambassador to Germany, as his diplomatic adviser.

On Sunday, he chose the current French ambassador to Berlin - and former European Union ambassador - Philippe Etienne, as his diplomatic adviser.

The Macron-Merkel meeting came just hours after the French president nominated Edouard Philippe, the 46-year-old Mayor of Le Havre, to be his prime minister.

"He has a very good relationship with Merkel", the source said.

He also said France will push for economic reforms in the country to bring down unemployment and implement a reform agenda "not because Europe requests it, but because France needs it".

For the first time since his election, Macron laid out his vision for the eurozone.

Duterte imposes martial law in Mindanao
Security analysts say Hapilon has been trying to unite Filipino militant groups that have professed allegiance to IS. Duterte has also said he is willing to enforce martial law nationwide if it is needed to eradicate drugs in society.

Macron says such a budget would allow for joint investments, provide emergency financial help, and help the eurozone better react to a financial crisis.

After campaigning for Socialist prime minister Michel Rocard as a youth, he switched to the right, becoming a close ally of centre-right former prime minister Alain Juppé.

Macron also soothed German concerns over the mutualising of "old debt" between eurozone countries, saying he does not favour the idea of so-called eurobonds, but adding that he was open to sharing future burdens.

In this case, he said, "those who made efforts are not rewarded compared to those who made efforts".

He sought on Monday to show solidarity with Germany on the migrant crisis - an issue on which Merkel has pressed for European Union countries to work together - by saying that a common asylum policy was one area where Paris could cooperate with Berlin.

The EU, she said, must become more agile in its procedures and most decisive in its actions.

Asked if she was anxious that Mr Macron's push for a "Buy European Act" could undermine the established order of free and open trade, Ms Merkel said: "In trade relations, for example, I see this element of reciprocity, this is something I can very well imagine". If they can't agree on a governing alliance, Laschet could opt for a "grand coalition" of the biggest parties with the Social Democrats.

"Germany's interests are closely linked to France's interests", Merkel noted.

Germany, which as Europe's strongest economy has borne the brunt of bailouts for weaker eurozone members, is not thrilled by this idea.