London, Rabi'II 27, 1435, Feb 27, 2014, SPA -- German Chancellor Angela Merkel on Thursday dashed British hopes of gaining her support for far-reaching reform of the European Union, though she did concede that some changes were necessary and urged London not to leave, according to dpa. In the first speech by a German leader to both houses of Parliament in nearly three decades, Merkel praised Britain as an "important ally" in making the EU "a better place" but gave no concrete suggestions for change. "Some expect my speech to pave the way for a fundamental reform of the European architecture which will satisfy all kinds of alleged or actual British wishes. I am afraid they are in for a disappointment," she said. "Others are expecting the exact opposite and they are hoping that I will deliver the clear and simple message here in London that the rest of Europe is not prepared to pay almost any price to keep Britain in the European Union," she said. "I am afraid these hopes will be dashed." She was "caught between the devil and the deep blue sea" on the subject, which was "not a pleasant position to be in," Merkel continued in English, before switching to German for the main part of her speech. Prime Minister David Cameron, who said her address was "excellent", has promised to renegotiate Britain's relationship with the EU and then hold a referendum on his country's membership, if he is re-elected next year. He sees the support of the leader of the largest EU economy as key, and the welcome extended to Merkel on her one-day visit was much warmer than that of French President Francois Hollande a few weeks back. -- SPA 19:52 LOCAL TIME 16:52 GMT www.spa.gov.sa/1203966