Kenny and Cameron hold bilateral meeting in London

Taoiseach Enda Kenny has held his first bilateral meeting with British counterpart David Cameron in London this afternoon.

Taoiseach Enda Kenny has held his first bilateral meeting with British counterpart David Cameron in London this afternoon.

At a press conference afterwards Mr Kenny said they had discussed security threats in Northern Ireland, the "significance" of Queen Elizabeth’s visit to Ireland next month and "co-operation" between the two countries "at a European level".

Mr Kenny said neither leader discussed "in any detail" cutting the interest rate on Britain’s £3.25 billion (€3.7 billion) bilateral loan to Ireland.

He told reporters after the meeting the vast majority of Irish people welcome “very warmly” the visit of the queen to Ireland.

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“In respect of the significance of her visit, it's well thought out, it’s very sensitive, and the fact that she intends to visit both the Garden of Remembrance and the Islandbridge Memorial speaks for itself in terms of history and tradition on both sides,” Mr Kenny said.

The meeting with Mr Cameron came as part of a day-long visit to London, which the Government has described as part of the Taoiseach’s “diplomatic offensive” to restore the country’s reputation internationally.

Downing Street described the encounter as “an important meeting”.

Earlier Mr Kenny said Ireland would not default on its debt as he tries to rebuild confidence at a time when investors speculate Greece may struggle to pay back its borrowings.

"The Greek government will obviously deal with this problem in the best way it can," said Mr Kenny in an interview on Bloomberg television in London today.

"We have no intention of defaulting. We've made that perfectly clear. We want to continue to pay our way."

Irish, Greek and Portuguese bonds fell today amid mounting speculation Greece will have to restructure its debt. All three countries have sought bailouts from the European Union and International Monetary Fund, and the Irish Government wants a reduction on the rate on its loans, which he has described as "too severe".

"We're not looking for more money from Europe, we're looking for greater flexibility," Mr Kenny said, referring to the rate on the bailout and to medium-term financing for lenders from the European Central Bank.

He also said that an increase in Ireland's 12.5 per cent corporation-tax rate to appease fellow EU leaders is "not up for negotiation."