23 September 2013

Reform the EU or repatriate its powers?

In a press statement after the federal elections, the German Foundation of Family Entrepreneurs called  for Angela Merkel to follow the Dutch and British lead in reducing EU powers. In their statement, they called for a shift in the German approach to the EU, arguing that "the mantra, that the way out of the debt crisis can only be achieved by further centralisation in Europe, has had its day. Britain and the Netherlands are already checking the EU Commission competences. The principle must be: European [level] if necessary, national and regional, if possible. We expect that Chancellor Merkel will push for reforms on this kind in Europe."

The Telegraph reports that David Cameron knows that his plan to negotiate a new deal between Britain and Europe depends almost entirely on Germany’s approval. So Angela Merkel’s crushing victory will have been a cause for both celebration and trepidation in London. To gain trust and support in Berlin, Cameron needs not just to show that he is in charge, but to begin putting specific reform ideas to Berlin, to first slow and then reverse the drive to ever closer union. First, the core of the EU would need to be defined as the single market – not the euro. Giving the rest of Europe a veto over any eurozone proposals that touch on the single market could well win support in Berlin – and might prove more effective than a UK-specific veto over financial services.

Open Europe Director Mats Persson also argues in the Telegraph that following Angela Merkel’s election victory "Cameron retains a hugely powerful centre-Right counterpart with whom he can definitely do business. Merkel won’t pay any price to keep the UK in the EU, but she has dropped hints in public and private that she’s willing to grant concessions – including a reduction in the EU’s power."

In a similar vein, at the Open Europe fringe meeting at the Labour Party Conference, Swedish Shadow Foreign Minister Urban Ahlin said that "We should not be afraid to discuss the return of powers to Member States". He continued by stating that it was important for the Left to take part in the debate about the balance of powers. He added that it was important for the UK and Sweden to work together to ensure that rules designed to stabilise the eurozone didn't adversely impact on those outside the single currency. In his opinion, German Chancellor Angela Merkel "needs" David Cameron to push through rules to make the eurozone more competitive.

As City AM reports, The EU Commissioner for economic and monetary affairs, Olli Rehn, has urged a "well informed and substantive debate" about whether the EU is good for the UK. Rehn said that he was aware that there is growing support for a referendum in the UK, and that he believes that it would be better for the UK to seek to reform the EU, rather than to attempt to repatriate powers.