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Labour leadership contender Andy Burnham has told the BBC the party "needs to get off the back foot" and address issues like Europe, immigration and business. 

"Let's grasp the nettle and have the debate," he told Radio 4's World at One. 

"I am also saying to David Cameron, he must deliver a package of reform on immigration that meets the public's test of fairness and commonsense. And that is a package about freedom to work, yes, but not freedom to claim. 

"So I am putting Labour in a leadership position on this issue." 

Allegra Stratton, political editor for BBC Newsnight, has a video diary of her time tracking the prime minister on his quick tour of Europe. 

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It is understood the Treasury is "looking at options" ahead of the Chancellor's planned budget in July, and further spending cuts planned for 2016/17 and 2017/18. 

But Whitehall sources are clear there's no target for in-year savings. 

The prime minister's spokesman said: 

 The fight between Labour and UKIP is heading to Wales, writes the BBC's Ross Hawkins. 

Nigel Farage's party is challenging in seats where Labour traditionally dominate at the general election, and it could be on course for electoral success there within the year.  

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Chief Secretary to the Treasury Greg Hands has written to government departments asking them to identify possible savings from this year's budgets.

Treasury sources said it was "part of a process" of identifying areas in which money could be saved, but denied non-protected departments had been asked to cut 5% from their budgets this year.

The press conference with David Cameron saw Angela Merkel decline to comment on Fifa president Sepp Blatter, who is expected to be elected to a fifth term as Fifa president later on. 

She did say: "For me it's important that there is an end to corruption, that there will be transparency again. The dirty side [of football] as David Cameron has put it, needs to be cleaned up."

Image source, Reuters

Mr Cameron has said again that Britain's national interest can best be served by staying in the European Union on the basis of a reformed settlement. 

"That is what we both want to happen and that is what we will work together in the coming months to achieve," he said at his press conference with the German leader.

During the press conference, Mr Cameron said the European Union has "shown before that when one of its member states has a problem that needs sorting out it can be flexible enough to do so. And I have every confidence that it will do so again".

David Cameron suggests there should be no more penalty shoot-outs in future, and that international football matches should simply keep playing "for as long as it takes" to find a winner.

This would generate a "level playing field between Britain and Germany, the two greatest footballing nations on Earth", he says. 

Will Mrs Merkel remind him that Britain doesn't have a unified national football team? 

Mr Cameron says the EU is better off with the UK as a member state, and that Britain's national interests are better served within the union. 

More on Sepp Blatter's leadership of Fifa from Mr Cameron: "You cannot have accusations of corruption at this level and on this scale in this organisation and pretend that the person currently leading it is the right person to take it forward."

David Cameron says the EU should have the "flexibility of a network, not the rigidity of a block".

Mr Cameron also said there was no "magic" solution to the question of EU reform, but "where there's a will, there's a way".

Prime Minister David Cameron and German Chancellor Angela Merkel are holding a press conference in Berlin.

The first question from the press, by the BBC's James Landale, is about whether Fifa president Sepp Blatter should resign in the wake of corruption allegations at football's global governing body. 

"In my view he should go," Mr Cameron says. "The sooner this happens the better".

He added: "What we have seen is the ugly side of the beautiful game."

Legal papers have been lodgedwith the Court of Session in Edinburgh by campaigners hoping to overturn the election of Orkney and Shetland MP Alistair Carmichael.

Mr Carmichael has faced calls to resign over the leak of a memo which wrongly suggested Nicola Sturgeon wanted David Cameron as prime minister.

The Scottish Liberal Democrat MP won the support of his local party earlier this week.  

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The BBC's Berlin correspondent Jenny Hill,, external speaking on the Daily Politics show, says she has been told by a source close to Angela Merkel that Germany is ready to do "anything that can be done to keep Great Britain in the EU". 

Tory MP for Blackpool North and Cleveleys, Paul Maynard, has some news about becoming a Parliamentary Private Secretary in Westminster.

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Mrs Merkel and Mr Cameron listened as the band in Berlin played the national anthems of their two countries. 

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The two leaders were clearly happy to meet up again, as they kissed one another on the cheek.

Image source, Reuters

Prime Minister David Cameron was greeted upon his arrival in Berlin by German Chancellor Angela Merkel.