Britain's Prime Minister David Cameron speaks to the media with Germany's Chancellor Angela Merkel (L) at Downing Street in central London, Nov 7, 2012. [Photo/Agencies]

LONDON - British Prime Minister David Cameron met with German Chancellor Angela Merkel at Downing Street on Wednesday night, for a talk on key issues including the next European Union budget.

Speaking ahead of the meeting, Cameron said: "We are both believers that European countries have to live within their means, as does the European Union. And I know that we will discuss that issue tonight."

The prime minister said the EU budget should be cut at best and freezed at worst, at a time when austerity measures were taken by governments across Europe.

Merkel also said the EU budget would be an important topic of the meeting as the two countries share interests as net contributors to the EU.

"We will not complete negotiations tonight but we want to do this in the spirit of partnership and friendship in order to focus our interests," she said.

Cameron has threatened to veto any increased EU budget during the next summit. However, a Parliament vote last week has put more pressure on the British government to push for real-term cuts in Brussel's spending plan.