Many of Britain's demands for EU reforms are "justified and understandable," German Chancellor Angela Merkel said Wednesday ahead of a key European summit on the UK's membership in the bloc.

"These are not just about Britain's individual interests on some issues or questions, rather it's about several points that are justified and understandable," she told parliament, laying out her government's position on the eve of the EU meeting.

"Like (British Prime Minister) David Cameron, I believe that it is necessary for the EU to improve our competitiveness, and reduce bureaucracy. Germany has shared these concerns for many years," she said.