Martin Schulz, the leader of the rival Social Democrats SPD , told an interview with Spiegel magazine he would insist on deeper integration as a condition of joining any new government under Mrs Merkel. Mr Schulz and Mrs Merkel met on Thursday night to discuss a possible new coalition or SPD support for a minority government, and initial reports suggested the talks had gone well. But Mr Schulz insisted on Friday his party had still not decided whether it was prepared for further talks. He said the SPD would consider the matter over the weekend and announce its decision on Monday. Mrs Merkel is looking to the SPD for a lifeline after coalition talks with smaller parties collapsed. If the new negotiations fail, Germany may face new elections. Mr Schulz initially refused to consider any sort of deal with Mrs Merkel, before backing down in the face of open rebellion from his own party.

EU rebuffs Netanyahu call on Jerusalem

They are preparing to lodge formal complaints in the coming weeks. If successful, the company could be forced to pay further multi-billion euro fines, or make further changes to its search results. Competition commissioner Margrethe Vestager Credit: Although Google Shopping must now bid against rivals for paid-for positions in search, opponents say the auction is not fair, since Google is merely moving money from one part of the company to another.

Richard Stables, of price comparison site Kelkoo, said that 99pc of slots for shopping search results are still held by Google, showing the changes have done little to bolster competition.

Foundem , the price comparison site that complained about Google eight years ago, is also understood to have held talks with the commissioner.

Share this article Share But he also furiously rejected suggestions from Brussels that Nothern Ireland could stay in the single market after Brexit – effectively splitting the UK. Mr Davis said the settlement ‘cannot amount to creating a new border in the UK’. The Brexit Secretary reiterated his calls for the EU to agree to move on to trade talks. Theresa May has said Britain will pay 20 billion euros for a two-year transition deal and honour the commitments we have made.

But the EU are demanding Britain goes further in spelling out exactly what we will pay – squeezing out more cash before we move on to trade talks. But it is unclear how this will be achieved when the UK leaves the customs union.

International News

The extraordinary cost of relocating the medicine and banking agencies emerged yesterday as it was also revealed that the vast majority of staff do not want to leave. Officials from the body, which regulates medicines, failed to insert a break clause when taking over the nine-storey portion of a skyscraper meaning it must be rented until the lease ends in Revelations about the huge costs of the relocation came as 23 EU cities launched slick campaign bids to be chosen as the their new home of the bodies, which employ 1, people.

While senior EU officials have insisted that the regulators must relocate as a consequence of Brexit, yesterday it emerged that huge numbers of staff are considering staying in the UK. An official present at the meeting said the medicines regulator outlined how a survey revealed that 75 per cent of its members of staff did not want to move to a new location. The discontent will spark calls for British authorities to lure huge numbers of its EU-employed experts to work for its replacement regulator following Brexit.

We would be free, after all.

Netanyahu said the controversial announcement by US President Donald Trump — which prompted diplomatic alarm and street protests across the Islamic world — had “put facts squarely on the table”. As he arrived for talks in Brussels, Netanyahu said he expected “all or most” European countries would follow the US — but the nation bloc’s foreign policy head Federica Mogherini gave him a stern rebuff, telling him to “keep his expectations for others”.

The EU expressed alarm last week at the US decision, but Netanyahu said Trump had simply stated facts by acknowledging that Jerusalem had been the capital of the Israeli state for 70 years and of the Jewish people for 3, years. The Jerusalem decision upended decades of US diplomacy and broke with international consensus. Mogherini last week warned it could take the situation “backwards to even darker times”. After nearly two hours of talks between Netanyahu and the EU ministers, Mogherini gave a flat rejection of his suggestion they could follow Trump.

She reiterated the EU’s stance that “the only realistic solution” for peace is two states — Israel and Palestine — with Jerusalem as the capital of both and the borders returned to their status before the Arab-Israeli War. And she pledged to step up efforts with the two sides and regional partners including Jordan and Egypt to relaunch the peace process. Mogherini also condemned attacks on Israel — after Netanyahu took aim over the weekend at what he called Europe’s “hypocrisy” for criticising Trump’s statement, but not “the rockets fired at Israel or the terrible incitement against it”.

Netanyahu pointed to a new US peace initiative as a possible way forward. I think we should give peace a chance. I think we should see what is presented and see if we can advance this peace,” he said.

Merkel faces demand for further EU integration as price to end government crisis

British officials are said to be confident they can agree the divorce bill and move on to trade talks by the end of the year.

Theresa May faces Brexit backlash from her own MPs protesting she is delaying full EU departure

Theresa May, pictured leaving No10 yesterday, is reportedly considering upping the amount Britain pays into the EU for the divorce bill in a bid to unblock the Brexit talks Read more:

Brexit: UK faces £520m bill for moving the European Medicines Agency from London to the EU

Out of 14 possible objectives, Leavers want to make sure Britain no longer pays money to the EU.

EU rebuffs Netanyahu call on Jerusalem

Competition commissioner Margrethe Vestager Credit:

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