| Is Britain's semi-detached EU status viable? Oct 23rd 2012, 06:33 Can it survive in the long term? The British have always been divided on the issue of EU membership. They kept out of the original founding group because at the time Britain saw itself as a world power and focused far more on the Commonwealth than on Continental Europe. In fact for a long time most Britons denied being "Europeans". Of course, there have always been plenty of "Eurosceptics" in other member countries too, but such is British bloody-mindedness that this tendency has always been strongest in Britain. When Britain was already a member, it was necessary in 1975 to have a referendum on continued membership of what was then the European Economic Community (EEC). I remember campaigning then in favour of membership, which seemed clearly in Britain's economic interest. However, few people then were in favour of becoming part of a federal European super-state. The eurocrats, however, were always working towards that goal, and doing so with a minimum of democracy. Britain managed to negotiate an opt-out from the euro, signalling that it was not going in that political direction. The euro collapse has convinced eurozone leaders that they need to hasten integration, and all the signs are that European federalism will progress further and quite fast. Britain still wants an economic union, but not a federal one. http://www.bbc.co.uk/news/uk-politics-20026811 Quote:
Prime Minister David Cameron has promised to ensure the UK's interests are defended as eurozone countries move towards a banking union.
He told MPs there had been "limited progress", but added that this should not affect the "single market".
Mr Cameron also called for a "rigorous settlement" to ensure the EU's budget does not rise by more than inflation...
...Mr Cameron said: "Britain's banks will be supervised by the Bank of England... but we do need eurozone members to get on and form a banking union."
He also pledged to fight to make sure the EU's budget would not increase by more than the rate of inflation over the next few years, saying: "We have not put in place tough requirements in Britain to go to the EU and agree to big increases.
"I put down a marker that we need a rigorous settlement."
The German government has denied reports that Chancellor Angela Merkel is prepared to cancel next month's EU summit unless Mr Cameron lifts a threat to veto a rise in the budget...
...Mr Cameron has said a referendum would be the "simplest" way of establishing the UK's future position in the EU, should such a matter arise.
Conservative MP Philip Davies argued this would not go far enough, and leaving the EU should be an option, saying: "He may find an in/out referendum undesirable, but I find his in/in referendum equally unacceptable. Only an in/out referendum will do for the British people, it will be in his very much best interests if he would stop resisting it."
Mr Cameron replied that, on this issue, he did not agree with his colleague, adding: "Many people, me included, are not satisfied with the status quo, and that's why the in option is not acceptable.
"But many people, also like me, do not want us to leave altogether because of the importance of the single market to Britain, a trading nation, so they don't want to be out. That's why I think an in/out referendum isn't the right answer."
| Here's a German view: http://www.spiegel.de/international/...-a-861294.html Quote:
The new approach has sweeping consequences for the European Union. Cameron's stance has already prompted the Germans to rethink their approach. Chancellor Angela Merkel had long hoped that a permanent division of the EU could be avoided. She had repeatedly said privately that one should not give the British the feeling that they are no longer part of Europe, and that the door must be kept open for London.
Those hopes have now been dashed. The German government is convinced that the Euro Group will be the core of a new, more deeply integrated Europe.
Each additional step toward closer cooperation in the euro zone deepens the rift within the EU. The Germans are also unwilling to wait for the British to come around in other areas, such as foreign and defense policy. Ironically, Europe threatens to split the year the EU is being awarded the Nobel Peace Prize...
...This goes well beyond the two-speed Europe outlined by German Finance Minister Wolfgang Schäuble years ago. On the one side of the current divide is a hard core of countries that want to work together more closely. On the other side are countries like Great Britain, Denmark and Sweden, which are essentially condemned to be spectators if they no longer wish to join the rest. The dream of an expanding and more tightly integrated Greater Europe is over.
The French have no objections, given that they stand to benefit from this development. The individual countries would shape policy in the euro zone, which is what Paris has always preferred. The European Commission would lose some of its influence, while the Mediterranean countries would receive a stronger voice and Germany's power would wane...
...From the German perspective, the British always provided a counterweight to the French penchant for government control over the economy and trade barriers. For Berlin, they guaranteed that the EU did not compete with the United States on the global political stage. That was why Merkel long opposed any development that would permanently leave Great Britain behind.
But the Cameron administration's unwillingness to compromise leaves the German government with no choice. Berlin's official position continues to be that all integration steps must be fundamentally available to all EU members. But in reality the chancellor has long since come to terms with the fact that there will no longer be a path back to the center of the union for the British.
In a closed-door meeting with European Commission President José Manuel Durão Barroso in Bonn last Thursday, Merkel explained her proposal to develop a separate budget for the euro zone. Her advisors envision that the money will be earmarked for targeted measures to promote growth in euro-zone countries. If Merkel's idea prevails, it will be a reflection, in terms of fiscal policy, that there are now two European communities under the umbrella of the EU.
Barroso, who opposes the idea, told Merkel that a separate budget for the euro zone would only expedite the split within the EU. The Portuguese politician also has his own role in mind. The Commission has a strong position in the 27-member EU, but in the Euro Group, the leaders of the individual member states largely hold the reins. But Merkel is not backing down, and her proposal is still expected to be on the table at this week's EU summit.
Fiscal issues aren't the only area in which Berlin intends to proceed without London in the future. Berlin also doesn't want to be reined in when it comes to security and defense policy, which seemed to make little sense without Great Britain until now.
German Foreign Minister Guido Westerwelle, together with his counterparts in France and Poland, is determined to promote cooperation on security policy in the EU. Last fall, the British blocked an attempt by the other 26 EU member states to establish a joint headquarters for military missions. Now the plan is to be revived and implemented, even against London's resistance, if necessary...
...People in Brussels and in many member states are so upset about Britain's behavior that a scenario is becoming conceivable that all sides had hoped to avoid until now: If the many opponents of Europe among the Tories prevail, the European treaties will have to be renegotiated...
...the fear that has senior crisis managers in Brussels worried at the moment. Greece's financial problems are no longer at the top of their list, but rather the possible departure of one of Europe's largest countries.
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