German Chancellor Angela Merkel (R) and Ireland's Prime Minister Enda Kenny address the media after talks in Berlin, Nov 1, 2012. [Photo/Agencies]

BERLIN - German Chancellor Angela Merkel and Irish Prime Minister Enda Kenny on Thursday pledged to make further efforts to reach a deal on the EU's long-term budget, a key issue of an upcoming EU summit in Brussels this month.

After her meeting with Kenny, Merkel said they agreed it was crucial to keep working towards a deal, adding that Germany would do everything in its power to try to achieve a solution.

"Ireland will also do this - we spoke about it - and now we'll have to see how things develop," Merkel told reporters.

The 2014-20 EU budget proposed by the European Commission which included a 5-percent increase to 1.03 trillion euros ($1.33 trillion) is not welcomed in some member states at a time of financial difficulties.

Kenny, whose country will take over the rotating EU presidency in January 2013, said he hoped the differences among members in the bloc could be surmounted, adding that it was necessary that the people of the EU and the eurozone see the decisions made by leaders being followed through.

Kenny said Ireland's priorities during its EU presidency would be promoting economic stability, growth and jobs.