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German Chancellor says will work constructively with Britain on EU reform

"I am convinced that we will be able to find an acceptable compromise," Merkel added.

Germany's Merkel says will work constructively with Britain on EU reform

German Chancellor Angela Merkel said on Thursday her country would work constructively with Britain on European Union reform, but stressed that some principles were non-negotiable, such as free movement of people.

"It goes without saying that we will work constructively with the British government," Merkel said in a speech to the Bundestag lower house of parliament on Thursday ahead of an EU summit in Brussels later.

"But it also goes without saying that there are things that are non-negotiable. That there are achievements of European integration that cannot be haggled over, for example the principle of free movement and the principle of non-discrimination," she said.

British Prime Minister David Cameron is set to hold a in-or-out referendum to determine his country's future in the 28-member European Union.

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