The German government rejected on Monday a report in the Financial Times which said Chancellor Angela Merkel may threaten to cancel an EU summit on the bloc's long-term budget scheduled for next month unless Britain shifts its stance.
"It is not true. I categorically deny this report," government spokesman Steffen Seibert told a news conference.
"The German government has an interest in the success of this special summit in November and supports European Council President Herman van Rompuy in the goal to get an agreement on the long-term 2014-2020 budget."
Seibert said Berlin was convinced that an agreement would "send a strong signal about Europe's ability to get things done" and offer a degree of planning security for European member states.
The FT reported on Monday, citing people close to the negotiations, that Merkel did not believe there was any point in holding the budget summit if British Prime Minister David Cameron continued to insist that we would veto any deal that did not freeze spending at current levels.
(Reporting by Noah Barkin and Stephen Brown)