DAVID CAMERON and Angela Merkel’s austerity rampage continued yesterday as both leaders agreed to focus on key issues to advance their “common agenda.”

On the first day of the German chancellor’s visit to Britain the Prime Minister was keen on cosying up to Europe’s most powerful politician as he built his campaign to renegotiate Britain’s EU membership.

But to many, the issues around the leaders’ meeting go far beyond Conservative attempts to canvass Ukip votes.

“Cameron will want to use the meeting for shadow boxing on immigration,” Communist Party international secretary John Foster told the Star.

“The real danger arises from what the two leaders agree on — finalising the Transatlantic Trade and Investment Partnership (TTIP) and completing the EU single market.

“Both want to solve the EU financial crisis by cutting public services across Europe, enforcing flexible labour markets and pushing down wages.

“This directly threatens working people in Britain and across Europe.”

The language of Mr Cameron’s and Ms Merkel’s joint statement was unsubtle.

“We must do more to make the EU more stable and competitive than it is today,” read the document.

“We have both taken steps at home to consolidate our public finances and it is important that we continue to pursue this long-term plan.”

The conservative pair added that they “must do more to harness the potential of the single market and reduce regulation that is hampering business,” including facilitating the implementation of TTIP.

But despite the seemingly united front, critics believe ruptures will be seen in the negotiations — when dealing with Britain’s relationship to the EU.

Last year, Ms Merkel dealt a heavy blow to British Tories when she refused to support Mr Cameron in his defiance of a £1.7 billion budget bill issued by Brussels.

Mr Foster agreed that “on one issue only is there real disagreement. This is the EU’s drive to regulate the City of London to the detriment of the banks and hedge funds that finance the Tory Party.”

Labour’s Europe spokesman Pat McFadden said: “Chancellor Merkel is publicly supportive of Britain’s place in Europe but on her visit to London she will no doubt reiterate to David Cameron that Germany is not willing to bail him out politically at any cost.”

Architects of austerity not let off the hook

ANGELA MERKEL and David Cameron were not let off the hook as they kissed hello and strolled through the British Museum yesterday. 

Outside dozens of protesters shouted anti-austerity slogans in solidarity. 

Armed with banners and flags from many of Europe’s left parties campaigners attracted the attention of passers-by and tourists alike. 

Greece Solidarity Campaign co-chair Paul Mackney said the bloc was there to call on the Bundeskanzlerin to “change course” and scrap Greek debt.

He added that doing this would mean an “end to the disastrous austerity policies which are creating unemployment, wage cuts, homelessness and personal misery in every country in Europe.”

Ms Merkel however seemed oblivious to the heckles from outside the museum’s gates.