Obama: 'The EU Won't Work Without UK'

Barack Obama has warned about the effect of the UK leaving the EU as tensions over who gets one of Europe's top jobs intensified.

In a press conference alongside David Cameron, the US President said it was "hard for me to imagine that project (European Union) going well in the absence of Britain".

He added: "I think it is also hard for me to image it would be advantageous for Great Britain to be excluded from political decisions that have an enormous impact on its economic and political life."

It came after Mr Cameron held "candid" talks with the German Chancellor in an attempt to find a way of ending the impasse over the next president of the European Commission.

The Prime Minister has made it clear he does not want Jean-Claude Juncker, the candidate favoured by Mrs Merkel, to be appointed head of Europe's unelected legislative body.

He even threatened Britain could quit the EU if Mr Juncker, a former Luxembourg prime minister and arch-federalist, gets the top job.

The German Chancellor responded by accusing him of "bullying".

During the Thursday afternoon press conference Mr Cameron said both France and Britain had both just seen European elections which had been dominated by anti-EU parties, which showed a need for change.

He said: "That is why it is important we have people running the institutions in Europe who realise the need for change."

The two leaders met after a dinner on Wednesday night to try to find a way through the difficulties but a Downing Street spokesman indicated no agreement had been reached during the talks.

The No 10 source said: "They had friendly, candid and constructive discussions in-keeping with how their bilaterals usually are and in the spirit of finding consensus."

Mr Cameron has had further discussions on the issue with the current presidents Jose Manuel Barroso, who will step down later this year, the president of the European Council Herman Van Rompuy and Italian Prime Minister Matteo Renzi.

EU leaders have usually named the president of the commission on their own but new rules mean they have to "take into account" the results of last month's European elections.

Britain's argument is that appointing Mr Juncker, an EU insider, to the role would further push voters towards support of eurosceptic parties.

Mr Cameron fears that reforming the EU and negotiating a better role for member states, as pledged in Wednesday's Queen's Speech, will become a tall order under Mr Juncker's stewardship.

Mr Juncker was the chosen candidate for the post by the centre-right bloc that won most seats in the elections.

Mrs Merkel warned Germany's politicians on Wednesday that it would be "unacceptable" to ignore British hostility to the appointment of Mr Juncker but repeated her support for him.

Mr Cameron's reservations are shared by Sweden, Hungary and Italy.

Mr Juncker is fully expecting to get Europe's most prestigious job and yesterday tweeted: "I am more confident than ever that I will be the next European Commission President."

President Obama was also questioned on Scottish independence at Thursday's joint press conference, with some campaigners claiming his comments show he wants the UK to stay united.

"From the outside, at least, it looks like things have worked pretty well," said the President.

"And we obviously have a deep interest in making sure that one of the closest allies that we will ever have remains strong, robust, united, and an effective partner. But ultimately these are decisions that are to be made by the folks there."