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| Germany and France 'will block David Cameron's plan for a new EU treaty' | Germany and France 'will block David Cameron's plan for a new EU treaty' |
| (8 days later) | |
| David Cameron's "grand plan" to defuse the Tory civil war over Europe by winning back powers from the EU has been thrown into doubt after Germany said it would prefer to solve the eurozone's problems without a new European treaty. | David Cameron's "grand plan" to defuse the Tory civil war over Europe by winning back powers from the EU has been thrown into doubt after Germany said it would prefer to solve the eurozone's problems without a new European treaty. |
| In a blow to the prime minister, who has pledged to renegotiate UK membership before calling an in/out referendum in 2017, both Germany and France are now coming out against opening up the EU rulebook again in the timescale envisaged by Cameron. | In a blow to the prime minister, who has pledged to renegotiate UK membership before calling an in/out referendum in 2017, both Germany and France are now coming out against opening up the EU rulebook again in the timescale envisaged by Cameron. |
| In his keynote speech on Europe in January, Cameron said he believed the "best way" to secure the "changes needed for the long-term future of the euro and to entrench the diverse, competitive, democratically accountable Europe that we seek" was through a new treaty. If such a process were to be undertaken, all member states would be able to table their demands for changes to the way the EU operates. | In his keynote speech on Europe in January, Cameron said he believed the "best way" to secure the "changes needed for the long-term future of the euro and to entrench the diverse, competitive, democratically accountable Europe that we seek" was through a new treaty. If such a process were to be undertaken, all member states would be able to table their demands for changes to the way the EU operates. |
| The UK would be able to exert strong leverage by wielding the threat of a veto unless it won the right to a looser relationship in areas such as social and justice policy. But since hearing Cameron's pitch, Germany and France have come out firmly against what they believe would be an interminable and hugely complex negotiation among the 27 member states, which they fear could involve members spending much of their time debating UK concerns. | The UK would be able to exert strong leverage by wielding the threat of a veto unless it won the right to a looser relationship in areas such as social and justice policy. But since hearing Cameron's pitch, Germany and France have come out firmly against what they believe would be an interminable and hugely complex negotiation among the 27 member states, which they fear could involve members spending much of their time debating UK concerns. |
| A spokesman for the German government made clear that, while Berlin would back treaty changes if deemed necessary, it felt it would be better to avoid such an inevitably lengthy process. "We want to achieve a functioning, efficient and prosperous eurozone," he said. "For that we've started a process with our partners to agree on the necessary steps to achieve this goal. If these steps cannot be realised without a treaty change, we'll go for it. If these steps are achievable within the existing treaty framework, so much the better. It will save us much time." | A spokesman for the German government made clear that, while Berlin would back treaty changes if deemed necessary, it felt it would be better to avoid such an inevitably lengthy process. "We want to achieve a functioning, efficient and prosperous eurozone," he said. "For that we've started a process with our partners to agree on the necessary steps to achieve this goal. If these steps cannot be realised without a treaty change, we'll go for it. If these steps are achievable within the existing treaty framework, so much the better. It will save us much time." |
| Berlin and Paris, in a further sign of irritation at the UK's approach, have snubbed an offer to take part in an exchange of views with the Foreign Office on whether some EU powers should be returned to member states as part of a "review of competences", it emerged last week. Charles Grant, the director of the politically independent Centre for European Reform, who has held talks with senior officials in Berlin and Paris in recent weeks, said there was "no chance" of a new EU treaty in time for Cameron to hold a referendum in 2017, even if he was still in No 10. | Berlin and Paris, in a further sign of irritation at the UK's approach, have snubbed an offer to take part in an exchange of views with the Foreign Office on whether some EU powers should be returned to member states as part of a "review of competences", it emerged last week. Charles Grant, the director of the politically independent Centre for European Reform, who has held talks with senior officials in Berlin and Paris in recent weeks, said there was "no chance" of a new EU treaty in time for Cameron to hold a referendum in 2017, even if he was still in No 10. |
| "The French and the Germans have cooled on the idea of rewriting the treaties, for four reasons," Grant said. "One: they want to spike Cameron's guns, and deny him the leverage that a big new treaty would give the British. Two: though the eurozone still has many problems, they think the chances of a breakup are minimal, so there is no need for a dramatic leap forward to some sort of 'political union'. | "The French and the Germans have cooled on the idea of rewriting the treaties, for four reasons," Grant said. "One: they want to spike Cameron's guns, and deny him the leverage that a big new treaty would give the British. Two: though the eurozone still has many problems, they think the chances of a breakup are minimal, so there is no need for a dramatic leap forward to some sort of 'political union'. |
| "Three: although rhetorically many Germans favour a federal future, when they think about what it would mean in practice – financial transfers to the south – they get cold feet and prefer the status quo. And four: many countries – above all France – worry about the difficulties of ratifying a new treaty. Some, like Ireland and perhaps France, would have to hold referendums." Grant said that Germany backed a limited treaty change which would allow euro member states that renege on promises of reform to be punished. But it was clear that the French would not accept such changes unless Germany agreed to a eurozone budget, or the mutualisation of eurozone debts, both of which would cost it money, making it highly unlikely. | "Three: although rhetorically many Germans favour a federal future, when they think about what it would mean in practice – financial transfers to the south – they get cold feet and prefer the status quo. And four: many countries – above all France – worry about the difficulties of ratifying a new treaty. Some, like Ireland and perhaps France, would have to hold referendums." Grant said that Germany backed a limited treaty change which would allow euro member states that renege on promises of reform to be punished. But it was clear that the French would not accept such changes unless Germany agreed to a eurozone budget, or the mutualisation of eurozone debts, both of which would cost it money, making it highly unlikely. |
| Grant added: "Even if there was a move to amend one or two articles, the UK would not gain leverage: Britain's partners could bypass a veto as they did with last year's 'fiscal compact' treaty, which was negotiated outside the framework of the EU." | Grant added: "Even if there was a move to amend one or two articles, the UK would not gain leverage: Britain's partners could bypass a veto as they did with last year's 'fiscal compact' treaty, which was negotiated outside the framework of the EU." |
| Government sources said the prime minister still believed he could achieve a better deal for the UK whether or not there was a new treaty. | Government sources said the prime minister still believed he could achieve a better deal for the UK whether or not there was a new treaty. |
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