GERMANY has hit back at Donald Trump after the President tweeted it owed "vast sums of money" to Nato.

President Trump demanded Berlin should cough up billions of Euros more on defence in a tweet after an awkward meeting with German leader Angela Merkel at the White House on Friday.

2 Germany has hit back at Donald Trump after the President tweeted about ‘vast sums of money’ it owed to Nato following his meeting with Merkel Credit: Getty Images

In response German Defence Minister, Ursula von der Leyen, said in a statement: "There is no account where debts are registered with NATO."

She added that NATO spending should not be the only criteria used to measure the country's military efforts.

Her comments came as Trump's spokesman denied that the US leader had refused to shake hands with Merkel during their meeting.

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The pair were pictured shaking hands at the White House entrance but in a truly cringe-worthy scene, the US President appeared to completely blank requests to shake his guest Angela Merkel’s hand in the Oval Office.

Trump's spokesman Sean Spicer told German weekly Der Spiegel today: "I don't believe he heard the request."

But Germany's top-selling Bild newspaper said that was "improbable", saying that throughout the meeting, Trump did not once look Merkel in the eye.

2 Donald Trump had a frank meeting with Angela Merkel yesterday Credit: EPA

Trump had lashed out at the media in a tweet on Saturday morning over its view of the meeting.

"Despite what you have heard from the FAKE NEWS," he said, "I had a GREAT meeting with German Chancellor Angela Merkel."

But he then added: "Germany owes vast sums of money to NATO & the United States must be paid more for the powerful, and very expensive, defense it provides to Germany!"

Despite what you have heard from the FAKE NEWS, I had a GREAT meeting with German Chancellor Angela Merkel. Nevertheless, Germany owes..... — Donald J. Trump (@realDonaldTrump) March 18, 2017

...vast sums of money to NATO & the United States must be paid more for the powerful, and very expensive, defense it provides to Germany! — Donald J. Trump (@realDonaldTrump) March 18, 2017

Merkel said Berlin was committed to increasing its military spending to two percent of GDP, a 10-year- target NATO member states formally agreed to in 2014.

Trump had made European defence spending an issue during his election campaign, saying the United States - which spends just over three percent of its GDP on defence - carries too much of the financial burden for supporting NATO.

Germany, whose wartime past has led it traditionally to be reticent on military matters, currently spends 1.2 percent of GDP on defence.

Von der Leyen said that Germany's increased military spending would not go only to NATO but would also be used for participating in UN and European peacekeeping missions and to contribute to the fight against the Islamic State extremists.

She said: "To try to link the two percent (of (GDP) that we are aiming by the middle of the decade is erroneous."

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