Europe

Kiran Stacey

Nick Clegg. Getty Images

The Tories are having great fun mocking Nick Clegg’s opposition to an EU referendum, pointing out that the Lib Dems went into the last election promising a referendum of their own. The Lib Dems in turn, point out that the wording of their manifesto actually mirrors what the coalition has put into law, namely that there should be:

an in/out referendum the next time a British government signs up for fundamental change in the relationship between the UK and the EU

But the Lib Dems made a huge issue of it, even walking out of the Commons in 2008 when speaker Michael Martin refused to let the party bring an amendment calling for a referendum. As the guardian’s Nick Watt points out, Nick Clegg said at the time: Read more >>

Kiran Stacey

Two big questions remained after David Cameron’s landmark speech on Britain’s role in Europe this morning: would it do enough to please his eurosceptic backbenchers, and how would Ed Miliband respond?

We got the answer to both at PMQs. We know now that for the moment, Cameron has got his party off his back, and that Labour are not about to promise a referendum of their own.

The atmosphere in the Commons was electric as the leaders took their places. The Tory benches were packed with grinning faces – this looked like being a good day for Cameron, and so it proved. He even got a cheer for starting his first answer by saying: Read more >>

Kiran Stacey

 

Frans Timmermans, Dutch foreign minister

Frans Timmermans, Dutch foreign minister

I’m not sure if anyone in Downing Street is fluent in Dutch, but if they are, they may want to watch the edition of Nieuwsuur (their equivalent of Newsnight) broadcast earlier this week.

Cameron is off to the Netherlands tomorrow to make his great make-or-break speech on Europe, where he’s expected to announce a renegotiation of powers followed by a referendum in the next parliament. He has chosen to do it there because he regards prime minister Mark Rutte as one of his great allies in the cause of reforming Brussels. Read more >>

Kiran Stacey

Ed MilibandIf Labour wanted evidence of how difficult they will find it to outflank the Tories on Europe, it was there for them today during prime minister’s questions. This afternoon’s debate, during which Tory rebels will vote to push the government into backing a cut in the EU budget, seemed to offer the Labour leader a golden opportunity to embarrass Cameron in front of his own backbenches.

But the ploy failed. As Miliband attacked on why the PM didn’t back a cut in the budget, Cameron hit back, criticising the Labour leader of opportunism:

The whole country will see through what is rank opportunism… Labour gave away half our rebate in one negotiation. Today, they haven’t even put down their own resolution on this issue.

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Stefan Rousseau/PA

David Cameron at the G20 in Los Cabos, June 18 (Stefan Rousseau/PA)

David Cameron is taking a break from irritating the Germans. Instead, he has decided to piss off the French.

At the G20 summit, he generously allowed that it might be unfair to blame the entire euro-crisis on one leader, Angela Merkel, and acknowledged that the German chancellor had some difficult decisions to make. (She must still, ultimately, take his advice, however.) But, in separate remarks, Cameron also mocked President Hollande’s decision to increase the top marginal tax-rate in France to 75% – when Britain has just cut its top-rate back to 45%.

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Kiran Stacey

I wrote a few weeks ago that the number one priority of those at the heart of the coalition, and especially those close to Nick Clegg, was not to have a referendum on Europe. But there are people on his side who think the Lib Dem leader should effectively call the Eurosceptics’ bluff and back a referendum, not just on any new European treaty, but on the UK’s very membership of the union. It is an argument even Clegg used to advance.

Philip Stephens, the FT’s chief political commentator, made this call a few weeks ago in a provocative column (at least for a europhile) entitled Britain’s eurosceptics are right to call for a referendum. In it he argued:

Barring a euro break-up, Britain and its partners are now set on different courses. At some point the divergence will become unsustainable. The Tory sceptics may be right after all. There is a case for an in-or-out referendum. My guess is the sceptics would be sorely disappointed by the outcome. The voters are realists. Much as Brussels may irritate them, they know there is nothing splendid about isolation.

Now YouGov have done some polling that seems to back up Stephens’ conclusions, especially about the outcome of such a referendum. Read more >>

Uwe Corsepius, EU Council’s secretary general

UPDATE: According to a British official, the UK has today been invited to participate in the treaty negotiations, a significant shift that will allow London to weigh in on some of the most sensitive issues to be discussed, including whether EU institutions will enforce the new pact.

Senior officials from European national finance ministries chatted last night in the first informal negotiations on the highly-touted new intergovernmental treaty to govern the region’s economic policy, though diplomats say little substance was discussed.

Ahead of the talks, however, Uwe Corsepius, the new secretary general of the European Council, sent out a four-page letter to negotiators in an attempt to set a roadmap for how the talks will proceed – and we at Brussels Blog got our mitts on it.

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Kiran Stacey

Ed Miliband started well at today’s PMQs, using David Cameron’s words from his 2011 New Year message to highlight the government’s failure to stop the rise in unemployment, which has hit a new 17-year high.

Miliband quotes the PM as saying: “What is uppermost in my mind is jobs,” before asking, “What went wrong?”

There then followed such a well-worn debate (“Unemployment is rising,” says Labour; “Here’s what we’re doing to tackle it,” say the Tories) that half the press gallery fell asleep during it. Read more >>

Kiran Stacey

Nick Clegg with Herman Van Rompuy

Nick Clegg with Herman Van Rompuy

Nick Clegg’s advisers like to call him the “Heineken” of British politics, because he reaches the parts of Europe that other British politicians can’t reach. Clegg, who trained at the College of Europe, learned at the feet of Leon Brittan, the famously pro-European Tory, became an MEP and speaks to leaders across Europe in their own languages, is ideally placed to try and win back some goodwill for the UK among European leaders.

And that is what he will try and do over the next few weeks and months. He told cabinet this morning that he now wants to focus on how to re-engage with Europe after David Cameron’s treaty veto, which has clearly angered many on the continent. Vince Cable specifically raised the issue of business fears about being cut adrift.

Tomorrow, the Lib Dem leader will host a series of meetings with business leaders  to try to soothe any worries they have on the UK becoming isolated from the rest of Europe, and to ask their views on Europe more generally. He will also attend a business breakfast arranged by Business for New Europe, a pro-EU group of corporate representatives. Read more >>

Kiran Stacey

One of the key achievements of Britain’s veto in Brussels on Thursday night was supposed to have been that not allowing the full 27 members of the EU to sign a treaty would have stopped the 26 countries willing to go ahead using the EU’s institutions to do so.

The main effect of that would be to stop the European Commission scrutinising other countries’ budgets, and the Euroopean Court of Justice implementing the Commission’s decisions. This would make it much harder for Brussels to interfere in the fiscal plans of member states. Read more >>

Kiran Stacey

Douglas Alexander has written a piece for the New Statesman trying to prise open the cracks in the coalition over Europe.

In the run up to this afternoon’s debate on the EU, during which Ed Miliband is expected to paint Cameron as isolated both at home and abroad, the shadow foreign secretary has invited the Lib Dems to work with Labour to get the UK back into the heart of Europe.

He writes:

The roots of what happened on the night of Thursday 8 December lie deep in Cameron’s failure to modernise the Tory party. Just because he puts party interest before the national interest, there is no reason others should do the same. That is why I make a genuine offer to Liberal Democrats to work with us to try to get a better outcome for Britain, between now and when this agreement is likely to be finally tied down in March. Work can and should start immediately both to win back friends and allies and to consider what rules and procedures can avoid Britain’s further marginalisation.

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Kiran Stacey

Nicolas Sarkozy avoids shaking David Cameron's hand

Nicolas Sarkozy avoids shaking David Cameron's hand

So Britain has isolated itself in Europe by refusing to sign up to a deal to save the eurozone because other countries refused to give the UK specific safeguards to protect the single market and the City of London. Tory backbenchers are delighted, but what does the pro-European Lib Dem half of the coalition make of it?

Anyone expecting a massive bust up at the heart of the coalition will have been dismayed to read Nick Clegg’s statement this morning. The deputy prime minister said:

The demands Britain made for safeguards, on which the Coalition Government was united, were modest and reasonable. They were safeguards for the single market, not just the UK.

What we sought to ensure was to maintain a level playing field in financial services and the single market as a whole. This would have retained the UK’s ability to take tougher, not looser, regulatory action to sort out our banking system.

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