Does David Cameron now need a reopening of the EU's treaties more than Angela Merkel does?
We have hardly heard a peep from Britain on the latest leg of Europe’s banking union. It is natural enough given the UK will be outside the proposed system for shuttering shaky banks, which is primarily for eurozone countries. But do not imagine it is unimportant for London. Strictly in terms of David Cameron’s plans to renegotiate Britain’s place in the EU, there has perhaps been no more worrying a development in Brussels all year.
Why? Cameron’s renegotiation strategy is partly based on this assumption: the eurozone will need a banking union to survive, and a fully-fledged banking union will need a re-write of EU treaties before 2017. That necessity opens the door for Cameron to press demands to repatriate powers.
The trouble is that this week’s banking union negotiation is showing that Germany and the eurozone will go to great lengths to avoid giving Cameron the leverage he craves. In one senior EU official’s words: “Nobody wants to give the keys to the UK”. Read more
It’s hard enough to get 27 member states to agree unanimously on a seven-year, €1,000bn budget – as anyone following the latest EU summit wrestling match can attest. But completing an EU budget deal requires one more thing: the consent of the European parliament.
Martin Schulz, the German social democrat and parliament president, reminded EU leaders and the Brussels press pack of this fact on Thursday evening. In a mildly foreboding press conference, Schulz re-stated his threat that leaders should be prepared for MEPs to block any budget proposal that strays too far from the €1,033bn proposal submitted more than a year ago by the European commission, the EU’s executive arm.
“Yes, we are prepared to make savings, but we are not prepared to have the European Union budget simply amputated,” he said.
Schulz declined to say whether the latest €960bn proposal being considered by Herman Van Rompuy, the European council president, crossed the line from extreme weight loss to amputation. But he was clearly displeased. Read more
Ukip leader Nigel Farage at a European Parliament session in Strasbourg last year
Following prime minister David Cameron’s address on Britain’s EU future, there may not be two politicians in Europe spoiling for a fight more than the two men who are arguably the most high-profile members of the European Parliament: Nigel Farage and Guy Verhofstadt.
There’s one thing Britain’s foremost eurosceptic and Belgium’s most prominent European federalist agreed on: Within minutes of Cameron finishing his speech in London, both had blasted out e-mail responses lambasting it.
Farage, however, prefaced his criticism by saying he viewed it as the “greatest achievement to date” of his political group, the UK Independence Party, since it put Britain’s EU exit firmly on the agenda. Read more
David Cameron is now the only leader in Europe openly advocating the revision of EU treaties by a set deadline. He asserts that this will happen by 2017 because the eurozone will have to make “massive changes” to save the single currency.
But what if that is not the case? What if Britain is the main reason for a treaty revision? How would Cameron trigger a renegotiation?
The answer lies in Article 48 — to spare you from reading the text, here’s a summary of the hurdles it places before any advocate of treaty change: Read more
It is now become standard operating procedure: a big story breaks, and the Taiwanese news organisation NMA — which came to fame with its CGI take on Tiger Woods’s complicated love life — does its own unique interpretation of the event. Past favourites have included former British prime minster Gordon Brown’s temper tantrums and ex-US vice president Al Gore’s alleged harassment of a masseuse. Now, they’ve done Friday’s highly-anticipated speech by David Cameron on Britain’s future in the EU, complete with Bulgarians and Romanians storming Buckingham Palace and Nick Clegg in a Baby Bjorn: Read more
Finland's Jyrki Katainen, right, with Cameron during a visit to Downing Street last year.
In the run up to Friday’s big speech by British prime minster David Cameron on his country’s future in the EU, some of the loudest voices of concern have come from the UK’s closest allies, including Washington, Dublin and Warsaw.
In a meeting with a small group of reporters today in Brussels, Jyrki Katainen, the Finnish prime minister, added his voice to that list, saying that he cannot see what kind of competences Cameron could pull back from the EU.
“Being a member of the EU, and especially in the single market, you cannot kind of pick the raisins out of the bun,” said Mr Katainen, whose National Coalition party is closely aligned with British Conservatives on most major policy issues. “It’s very difficult to say what would be the competences that could be repatriated.”
Katainen added: “The EU without Britain is pretty much the same as fish without chips. It’s not a meal any more.” After the jump, we’ve transcribed the Finnish leader’s full remarks. Read more
Cameron and Barroso last week at Downing Street, where they discussed the EU budget
Amid all the hand-wringing about the Greek parliamentary vote on the key €28b austerity package this afternoon in Athens, the European Commission will meet to give its final assent to its proposed EU budget for the next seven-year cycle, normally the most-watched event on the Brussels agenda.
Much of the outlines of the budget have already been reported on the pages of the FT, but many will be watching the top line: just how much will the Commission, which, as the EU’s executive branch, has the responsibility for kicking off the 18-month negotiations, propose member countries should contribute to Brussels’ budget?
This will be a big question for David Cameron, British prime minister, who has made cutting down on Brussels’ spending the centre of his Europe strategy. For reference sake, after the jump we are re-publishing a letter Cameron got his French and German counterparts to sign calling for an effective freeze on the seven-year budget plan, known as the mutli-annual financial framework in eurocrat-ese. Read more
Implicit in suggestions today from Silvio Berlusconi, the Italian prime minister, that Hosni Mubarak should not be rushed out the door was this: A fear of what could come after the long-ruling Egyptian president. Chief among them is the possibility that Mr Mubarak would be replaced by an Islamist government hostile to the west.
But to David Cameron, the UK prime minister, Egypt’s future should not be cast in such binary terms. “I simply don’t accept that there is just a choice in life between, on the one hand, having a regime that does not respect rights and democracy and on the other hand having Islamic extremism,” Mr Cameron said, pointing to the example of well functioning democracies in Muslim countries such as Turkey and Indonesia. Read more
The EU’s final two-day heads of government summit of 2010 starts Thursday and early betting is that it will be much quieter than the last time the 27 leaders assembled in Brussels, a gathering that set off a bond market panic which the continent is still recovering from.
The main event will be Thursday night, when the leaders are expected to sign off on a brief change in the EU’s treaty to allow for the creation of a new financial rescue system to replace the current, temporary €750bn bail-out fund.
There is still some nervousness that Angela Merkel, the German chancellor, may push for additional language in the text to make explicit that the new bail-out system can only be accessed as a “last resort,” or ultima ratio in Latin, the phrase being used by the cognoscenti.
But Merkel did not mention the ultima ratio demand in her list of principles before the Bundestag Wednesday, and there seems to be little appetite among other members to let her bulldoze the new language in – particularly since it could cause more confusion among bond traders, who might wonder what all the other resorts are before the last one. Read more
Twenty-six European leaders turned up for a dinner in Brussels this evening with one burning question to discuss: Whether or not to change the European Union treaties to accommodate Germany’s demands for a new permanent bailout fund?
But one European leader burst in and insisted on talking about something else. That would be David Cameron, the UK prime minister, and his obsession was the European budget. Read more