Britain becomes Germany's biggest trade partner as Berlin-London pact deepens
Charles Grant director of the CER, said Mrs Merkel will "bend over backwards" to help Britain by offering safeguards for the City and backing for market reforms, but only up to a point. "They will not agree to repatriate powers or let the UK cherry pick which parts of the EU they want to belong to," he said, warning the Tories not to overplay their hand.