German Chancellor Angela Merkel has told David Cameron, UK prime minister, that she does not support the kind of fundamental reform of the European Union he wants, but said Britain should stay inside the bloc to help make it more competitive. In a speech on Thursday to both houses of Britain's parliament - only the third time a German leader had spoken there since the second world war - Merkel ruled out the prospect of a far-reaching overhaul of the bloc's treaties, indicating that she was open to modest reforms only. Al Jazeera's Nadim Baba reports from London.