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
Poor old Turkey has been getting mixed messages from European governments again, after visits by Britain’s David Cameron and Germany’s foreign minister, Guido Westerwelle, this week.
The UK prime minister was very outspoken in his support for Turkish membership of the European Union. “I will remain your strongest possible advocate for EU membership,” he said. “Together I want us to pave the road from Ankara to Brussels.”
It was familiar British policy, but spelt out with unusual passion, and very few cautionary words. Praising Turkey’s contributions as a Nato ally (no mention of Ankara’s tiresome blocking of Nato-EU co-operation on security issues), Mr Cameron declared: “It’s just wrong to say Turkey can guard the camp but not be allowed to sit inside the tent.”
Turkish media seized on some of the most flattering comments from Mr Cameron. “Our golden age” was the headline in the top-selling newspaper Hurriyet, while the Sabah daily blazoned its front page with “The EU would be poor without Turkey”. Read more
As you’d expect, European Union leaders were quick to congratulate David Cameron on his appointment as British prime minister. But for all the warm words, they will be watching his first moves on the European stage like hawks.
An important test will come next week at a meeting of EU finance ministers in Brussels. There the UK will find itself under pressure from a majority of countries to agree to new arrangements tightening the regulation of hedge funds and private equity. Spain, which holds the EU’s rotating presidency, is desperate to get the deal done next week, having helped out Gordon Brown’s Labour government by delaying it until the British election was out of the way. But will the new Conservative-Liberal Democrat coalition be inclined to sign up to such an important measure so soon into its period of office? Read more
Seen from continental Europe, one of the biggest questions of 2010 concerns David Cameron, leader of the UK’s opposition Conservative party. The Tories are widely expected to win the forthcoming British election, but few European Union politicians can claim with confidence to know where he truly stands on the all-important matter of Britain’s relationship with the EU.
The lack of clarity isn’t helped by the Tories’ distant relationship with their fellow EU centre-right parties. I am in Bonn at a congress of the European People’s Party, the leading centre-right party group. Everyone who matters is here: Germany’s Angela Merkel, Italy’s Silvio Berlusconi, Herman Van Rompuy (the newly appointed full-time EU president)… Countries from Malta to Latvia and Georgia to Croatia are represented. But there are no Conservative party politicians at all here – not Cameron, not William Hague, his shadow foreign secretary, not Kenneth Clarke, the only authentically pro-EU voice in the shadow cabinet. Read more
The distance separating Britain’s perceptions of the European Union from those of its Continental partners is so vast that the English Channel might as well be the Pacific Ocean. This was my first thought when I read not just David Cameron’s speech on what steps a future Conservative government would take to limit EU involvement in British affairs, but also the way the speech was reported and the reactions on each side of the Channel.
The Financial Times story, for instance, said Cameron’s speech set out “a very limited programme for European reform” – an interpretation which would raise howls of laughter across much of Europe, where the Conservative leader’s proposals are not viewed as “very limited” and are most definitely not seen as an effort at “reform”. Read more
Every now and then, I’m asked in Brussels whether the opposition British Conservative party’s hostility to the European Union is related to the fact that so many of its top people – including David Cameron, likely to be the UK’s next prime minister – went to Eton. The theory is that they’re so snooty and cut off from the lives of ordinary Britons that they’ve lost all sense of what’s in the national interest.
Well, it’s always tempting to have a rant about privilege. But in this case, the verdict on Eton is “not proven”. Read more
Victories in referendums rarely come as big as this. With full results in from more than half Ireland’s constituencies, the pro-Lisbon treaty camp is ahead by 66.8 to 33.2 per cent. What’s more, the turnout is high – almost 59 per cent, compared with 53 per cent when Irish voters rejected the European Union’s Lisbon treaty in June 2008.
No wonder Irish premier Brian Cowen looks like the cat that’s been served the cream (when he and his party are annihilated in the next Irish parliamentary election, he can always say he did the noble thing on Lisbon before perishing). And no wonder Irish big business is pleased, too. They were very visible on the Yes side during this campaign and they needed a convincing result to justify the money and effort. Read more