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24 February 2014

Merkel calls for Britain to remain at heart of Europe


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During her one-day visit to Britain, it is unlikely that Merkel will make significant concessions to prime minister David Cameron on his key concerns. These include changes to EU treaties to return powers from Brussels.


As reported by the Financial Times (subscription), German chancellor Angela Merkel will urge Britain to ignore the eurosceptics and stay at the heart of the EU in a speech to both houses of Parliament on Thursday. [The last German leader to address both Houses of Parliament was Richard Von Weizsäcker, the president of West Germany, on 26 April 1986 - see official press release]. But during her one-day working visit to Britain, she is unlikely to make significant concessions to prime minister David Cameron on his key concerns, including immigration curbs and changes to EU treaties to return powers from Brussels.

"Germany and the UK are, for each other, important partners – not only bilaterally but in Europe", said Steffen Seibert, Ms Merkel’s spokesman. "That will naturally be a theme of the visit . . . we want an active, strong UK in the EU", he is quoted by Finanzen.net

Ms Merkel will be getting "the reddest of red carpets", in the words of one British official. London hopes the lavish welcome could encourage Berlin to be more accommodating to Mr Cameron’s demands for EU reforms, including his hopes of diluting the union’s powers and curbing migration to appease eurosceptics at home. 

Freedom of movement

Immigration is likely to be the most controversial topic for discussion over lunch in Downing Street, writes the Telegraph, as Mr Cameron seeks Merkel's support for a tougher line as he tries to pacify his eurosceptic MPs and neutralise the threat to the Conservatives from the UK Independence Party. 

Britain has raised concerns, with a number of other countries, that the current rules are open to abuse, allowing people to travel to the UK simply to claim benefits. Mr Cameron has threatened to veto the entry of future new Member States like Serbia and Albania unless new migrant curbs are agreed but there is little interest in Berlin in even discussing this. Nevertheless, foreign secretary William Hague said that he believed the Germans and British shared "common ground" over concerns about benefit tourism within the EU. The Guardian reports that Merkel has made clear she was at least willing to try to help Cameron by pushing for changes to freedom of movement rules to limit so-called "benefit tourism" between EU Member States. 

However, José Manuel Barroso, the European commission president, last week poured cold water on Cameron's desire to reform freedom of movement, saying in the BBC's Andrew Marr show: "We have to make a clear distinction. One thing is freedom of movement - I don't think it is possible to renegotiate. It's a fundamental principle of the internal market. But to fight against abuse of the freedom of movement, this is certainly possible." 

EU reform

The Guardian quotes William Hague as saying that "Angela Merkel is the UK's key partner for EU reform", and adding that Merkel understands David Cameron's position and is the most important partner in seeking a new relationship between EU Member States. Serious renegotiations about the UK's relationship with Brussels would not start until after the next election, but the talks with Merkel would mark the start of finding common ground for changes. 

The Guardian also writes that Tory MPs have said: "Angela Merkel should be made aware that the rising tide of euroscepticism in Britain could cause the country to leave the EU". Stewart Jackson, Conservative MP for Peterborough, is quoted: "The prime minister needs to make it quite clear to Mrs Merkel that the era of ever-closer union moving towards a federal European superstate is over. We are serious about fundamental renegotiation on issues like free movement and benefit tourism and the Germans must understand that the British electorate will soon have options before it, which may mean an exit from the EU. The ball is in Mr Merkel's court." Diplomats, however, says Merkel is unlikely to support a re-opening of EU treaties that could allow large-scale "repatriation" of powers of the kind demanded by many Tory eurosceptics.

Downing Street appears to have accepted that talk of "repatriation" of powers may be unrealistic and a focus on rule changes within the existing treaty framework may be more realistic. Sources say Merkel's view is that, while she wants to help Cameron, the more urgent task for Berlin is to create a more stable and lasting framework for the euro, rather than re-opening the entire EU treaty rulebook. The Financial Times (subscription) reports that German officials are wary about starting treaty change talks for fear of opening a Pandora’s box of demands from 28 countries. They also say Berlin’s plans for closer integration in the eurozone and London’s proposals for a looser union outside the eurozone could be incompatible.

The Financil Times (subscription) puts it into broader context, reporting on David Cameron "beginning his EU diplomatic offensive", after having welcomed the Dutch premier at his country retreat. A Number 10 official said: "This is a good time for the prime minister to be meeting his European counterparts, as they start to think about what they want from Europe over the next few years". Mr Cameron hopes to make Mr Rutte a key ally in his push for a repatriation of powers from Brussels to sovereign governments. The Netherlands said recently that its policy towards the bloc was: "Europe if necessary – national where possible". British Influence further analyses in a point-of-view piece the scope for the UK and Dutch governments to work closely together as the current European policy debate moves forward.

Commentaries

On the Wall Street Journal blog, Tom Fairless argues that David Cameron's call to bring back powers from Brussels has been taken up by other European leaders, but not with the same fervour. If you look closely, Finanzen.net points out, it becomes apparent that even governments that seem to agree with Cameron still keep their distance. "No one wants to risk ending up sidelines in the end", said a senior EU diplomat.

Chris Cummings, Chief Executive of TheCityUK, says rolling out the red carpet is not enough and Cameron must convince Merkel that Europe needs the UK to remain competitive: "Convincing Angela Merkel of the benefits of reforming Europe for the benefit of all of Europe’s citizens is one of David Cameron’s most important tasks. All the pomp and circumstance shouldn’t distract either leader from the pressing business of the day. The Prime Minister must persuade Ms Merkel that the future competitiveness of Germany and Europe more widely, can only be guaranteed if the UK remains in the European Union."

In an article for the German Council on Foreign Relations, Almuth Möller calls on Brits to "be a  bit more upfront", and gives advice on what Angela Merkel should be saying in London: 

  • To start with, please do not overestimate your influence, or that of Germany. If you don’t work to convince all other Europeans that your efforts at reform are to create a better EU, and are not about mere self-interest, then you will soon find your efforts will go nowhere. 
  • Secondly, don’t place all your eggs in one basket, especially on an issue that is not even on the table. The ways and means of treaty reform have changed.  
  • Surely you also understand that even with a dose of goodwill, the Federal Government will not be able to give time and resources to your debate. Berlin places its energy on a sustainable future for the eurozone. One might deem that absurd, but my government, in direct contrast with the British government, has identified "more Europe" as the way to go.

FAZ’s Foreign Affairs editor Klaus-Dieter Frankenberger writes: “Germany’s readiness to accommodate Cameron is not insignificant but not unlimited. Merkel will gauge the room for compromise in Westminster und encourage the Brits to stay in the team.”


OpenEurope's briefing note, sets out the chances of an Anglo-German bargain on EU reform, the areas of possible agreement, and also the potential hurdles to a deal.

Facebook Video of BBC interview with former German ambassador to the UK Thomas Matussek, Conservative MEP Syed Kamall, and Roland Rudd from the Business for a New Europe campaign group

See also Graham Bishop's blog: Cameron + Merkel = Treaty Change + 'Contractual Arrangements'??





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