EU says distrust of US on spying may harm terror fight

European leaders at a summit in Brussels have spoken of a lack of trust between the United States and its European allies, saying that it could harm cooperation in the field of intelligence gathering.

Earlier this week it was revealed that US intelligence agencies may have been monitoring mobile phone conversations of the German Chancellor, Angela Merkel, and millions of French phone calls.

The German and French leaders say they want to agree new rules on intelligence gathering by the end of the year in bilateral talks with Washington.

Gavin Hewitt reports.