German Chancellor Angela Merkel says it would be better for Britons if the UK remains in the European Union.

"First of all, it is a decision of the citizens of Great Britain how they will vote at the referendum. But as I have repeatedly said, I personally would prefer Britain to remain a part of the European Union."

"And why do I wish that? Because we work well with the United Kingdom, especially if the European Union introduces new rules or refines their rules. And because I believe that Britain can yield its arguments much better and can have its say as to what is important to them from within the European Union and therefore any result is better than negotiating from the outside," she said.