Merkel intervenes in damaging row between Germany and Brussels

European commission has warned of possible legal action over constitutional court ruling

Angela Merkel has stepped in to try to find a way out of a damaging clash between Germany and Brussels after the EU threatened to bring infringement proceedings over a ruling by the country's constitutional court.

The German chancellor stressed that the dispute was solvable, after the European commission president, Ursula von der Leyen, issued an unusual statement on Sunday warning of possible legal action against Berlin.