Eurozone crisis: Hollande visit

The French President Francois Hollande is giving a joint press conference with the Prime Minister. Asked about whether he was happy to have the red carpet rolled out for him in London after Mr Cameron's comment about rolling out the red carpet for fleeing French business, he said:

Mr Cameron said that the two countries share a "good and strong relationship" and joked that the red carpet had been rolled out "for President Hollande only".

The Prime Minister appears intent on smoothing over relations with the new, socialist occupant of the Elysee Palace after a difficult start.

Mr Cameron caused dismay in France when he suggested he would "roll out the red carpet" for any French business seeking to flee to Britain to escape higher taxes under Francois Hollande.

The two men have also clashed publicly on the issue of an EU-wide tax on financial transactions, which Mr Hollande supports and Mr Cameron is determined to resist.

The Prime Minister's official spokesman said last night: "They are going to talk about economic policy. France are setting their fiscal policy, we are setting our fiscal policy."

Conservative backbenchers have set out a list of powers they want David Cameron to reclaim from the European Union.

A report called for the clawing back of key Brussels controls over justice, labour rules, energy, agriculture and defence.

It also increased pressure on the Prime Minister by insisting the renegotiated relationship must be put to a referendum.

The Fresh Start project document - put together by MPs Andrea Leadsom, Chris Heaton-Harris and George Eustice - emerged with coalition tensions running high over the issue.

The Guardian is reporting that; "David Cameron will warn Francois Hollande that he will block new governance arrangements for the eurozone if the EU refuses to allow a renegotiation of Britain's relationship with Brussels."

Number 10 has aid that the Prime Minister and French President will discuss the eurozone crisis when they meet later today.

The Guardian claims that there are hopes the meeting will foster warmer relations between the leaders.

Even before Mr Hollande was elected there were signs of strain - with Mr Cameron refusing to meet him when he visited London during the election campaign.

The Daily Mail is reporting that a group of conservative eurosceptics are to publish a report calling for the Government to pull back 71 key powers from the European Union and then hold a referendum.

Increasing pressure on the Prime Minister to start discussions about EU powers when he meets French President Francois Hollande today.

David Cameron is to hold talks with Francois Hollande when the French president makes his first visit to Britain since taking office.

The leaders will discuss the eurozone crisis and other issues over lunch today according to Downing Street.

It will be the second time Mr Cameron and Mr Hollande have held bilateral discussions, following a meeting in the US ahead of May's G8 summit.

The Prime Minister was accused of snubbing Mr Hollande by declining to meet him on a visit to London during the presidential election campaign.