Merkel and Cameron in stalemate on 'Tobin tax' for Europe

The UK and Germany have failed to make any progress with regard to the idea of a European financial transactions tax, Chancellor Angela Merkel has said.

But British Prime Minister David Cameron, who argues any such tax should apply worldwide, said they were "good friends" who wanted Europe to succeed.

While both countries would agree to implement a financial transaction tax on a global level, Mr Cameron said a tax exclusive to Europe would "drive transactions to jurisdictions where it would not be applied".