British Prime Minister David Cameron held talks with his Spanish counterpart Mariano Rajoy at Downing Street on Tuesday, with discussions focused on domestic reforms underway to drive economic growth, trade and investment as well as bilateral cooperation within the EU.

It was the Spanish prime minister's first visit to Britain since taking office in December. Rajoy and Cameron have signed and co-authored a letter highlighting growth that will be sent to the European Commission before the next EU Summit.

Cameron said after the meeting that the letter "demands action on completing the single market in services, energy and digital," and is "a fully-formed, fully-worked out growth agenda" that has the backing of EU prime ministers.

"We had a long discussion about the European situation, the Eurozone situation, but above all the need to get growth throughout Europe," Cameron said, adding that Spain and Britain have been cooperating well on this issue.

Rajoy said the most important part of their talk has been about the EU economy. He underlined some key issues the EU need to act on, including austerity, domestic reforms, monetary policies, and structural reforms in Europe.

"When Europe started, perhaps to be more precise, with the Treaty of Rome almost 50 years ago, we had already spoke about the freedom for goods, capital and people. 50 years later this is not yet a reality. It is not complete and we need to do some work and get it done," Rajoy said.