David Cameron will be warned that he risks creating an unstoppable momentum behind a "two-speed Europe", which would be dominated by France and Germany, if Britain demands too many concessions during the eurozone crisis.
In a series of meetings in Berlin and Brussels, the prime minister will be advised that Britain should table modest proposals next year when EU leaders embark on a small treaty revision to underpin the euro.
Merkel, who said earlier this week that the eurozone crisis showed the need to create a political union in Europe, is pressing fellow EU leaders to agree to a narrow and quick revision of the Lisbon treaty. This is designed to place tougher fiscal rules for the eurozone on a legal footing.
Merkel warned the prime minister at an emergency European council meeting in Brussels on 23 October that she would reluctantly have to side with France if Britain overplayed its hand in the negotiations. Nicolas Sarkozy, the French president, wants a treaty to be agreed among the 17 members of the eurozone, excluding Britain and the other nine EU
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