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Merkel (left) has less money in the pot due to the limping German economy (Photo: SIG-Information Service of the French Government)

Germany holds key to EU budget deal, conservatives say

European conservative party leaders said Germany holds the key to unlocking a budget deal at Thursday (15 December) and Friday's EU summit in Brussels.

"Merkel is an important actor", Luxembourg prime minister Jean Claude Jucker said, indicating that she will be a major mediator in the talks.

The debate has so far been characterised by deep disagreements between the UK, France and Poland over spending cuts and the UK rebate.

"Everyone now wants a deal", Mr Juncker added.

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Merkel (left) has less money in the pot due to the limping German economy (Photo: SIG-Information Service of the French Government)

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