EU leaders to hold talks with the US over spying allegations

France and Germany want to hold talks with the US by the end of the year to settle a row over spying, German Chancellor Angela Merkel has said.

It follows claims that the US National Security Agency (NSA) has monitored her mobile phone and millions of French calls.

Merkel said once seeds of mistrust had been sown, it made co-operation on intelligence more difficult.

The row over alleged spying continues to overshadow an EU summit in Brussels.

On Thursday, the UK's Guardian newspaper reported that it had obtained a confidential memo from the NSA suggesting it had monitored the phones of 35 world leaders.

Speaking at the end of the first day of the talks on Thursday, Merkel said France and Germany wanted to "create a framework" with the US on surveillance.

She stressed that she wanted to look for a basis to move forward with Washington, and that she was looking for deeds, not just apologetic words.

At a separate news conference, President of the European Council Herman Van Rompuy said EU leaders "took note of the intention of France and Germany to seek bilateral talks with the US". Other countries would be "free to join this initiative," he said.

Van Rompuy said intelligence gathering was a vital weapon against terrorism but it would be prejudiced by "a lack of trust".

The Guardian said the NSA memo suggesting it had monitored the phones of 35 world leaders was also sourced to Edward Snowden. The numbers were reportedly supplied by a US government official.

None of the leaders was named, but the memo said "little reportable intelligence'' was obtained.