In the end, there's no other option but to build a 3m high wall. The OP probably doesn't care what the neighbor looks at. It would be better if you both created a terraced garden, then maybe about 1.5m would remain at the border that would have to be retained with L-shaped stones.
I also find that a terraced garden offers a nice way to create structure. At the very top, trees can be planted, one level below flower beds, and then a lawn area for the children to play on.
I see this all the time around here, neighbors putting up 1.5-2m high concrete walls so that the entire property has exactly the same level.