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Merkel, Cameron stress friendship amid differences German Chancellor Angela Merkel and British Prime Minister David Cameron tried their best to hide their differences on how to solve the euro zone crisis after talks in Berlin on Friday. Both leaders sent out mixed signals on the best solutions to Europe's economic woes, admitting they disagree on what role EU institutions should play in saving the single currency and whether to introduce a new tax on financial transactions. Cameron called for “decisive action” to stabilise the euro zone, but Merkel made clear she favoured a “step-by-step” approach, underlining her opposition to the ECB becoming a lender of last resort. “We had very good discussions between very good friends. There are many things upon which we are in absolute agreement: on the importance of the single market, on the need for budget discipline, on the need for all countries to deal with their debts and deficits,” Cameron told reporters after the meeting. The British premier added that he and Merkel agreed the EU budget should be linked to the inflation rate, dismissing calls from MEPs for a five per cent increase “at a time when every country in Europe is having to make difficult budget reduction, difficult decisions”. The differences between the two leaders were played out in both the British and German press earlier this week. The Bild tabloid went as far as to ask: “What are the British still doing in the EU anyway?”
Federer wins Swiss Indoors title Switzerland's Roger Federer returned to winning ways with a convincing straight sets victory over Japan's Kei Nishikori in the final of the Swiss Indoors championship in Basel on Sunday. Nishikori, who stunned Serbia's Novak Djokovic in the semi-final, stepped it up a gear in the second set but it wasn't to be for the 21 year old as Federer proved too strong. The 16-time Grand Slam winner eventually triumphed 6-1 6-3, clinching his first title since January.
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Russia says Iran airstrike would be a ‘mistake' Russia has stepped into the increasingly tense atmosphere in Israeli-US-Iranian relations by warning any airstrikes on the Islamic Republic would be a “mistake”. Tomorrow or on Wednesday the UN's nuclear watchdog the IAEA is expected to confirm suspicions Iran is secretly developing a nuclear weapons capability. “It's not the first time Israel has threatened Iran with an air strike. Our approach is clear: that will be a big mistake fraught with unpredictable consequences. For the Iran nuclear problem, just like any other problem in the modern world, the military solution doesn't exist,” said Russian Foreign Minister Sergei Lavrov. Iran has insisted for years that its nuclear programme is intended only to provide electricity and that it has no weapons programme, claiming that proof to the contrary is just fabricated by the US and Israel.