Berlin dismayed over Britain’s EU reform push

Financial Times Financial Times

November 2, 2015 10:42 pm

Among senior members of Angela Merkel’s Christian Democrat party, there is some dismay that Britain is embarking on negotiations over its relationship with the EU at a time when Germany is housing refugees in sports halls.

George Osborne, Britain’s chancellor, arrived in Berlin on Monday as the country’s ruling coalition was in disarray over the vast influx of refugees it has received this year.


A crisis meeting of coalition leaders — called to discuss how to handle the arrival of up to a million refugees this year — broke up without agreement on Sunday over a contentious proposal to house migrants in “transit zones” at border crossings.

For Germany’s leadership, Britain’s demands add further tension to a European project that is already under strain.

And while Berlin is keen to keep Britain in the EU, regarding the UK as a valuable proponent of competition and free trade, there is concern that even if Germany makes concessions, British voters may still choose to leave.

Daniela Schwarzer of the German Marshall Fund of the US, a Berlin-based think-tank, said Germany feared that renegotiating British membership could encourage other EU nations to seek concessions from Brussels.

“Could it trigger a broader discussion of loosening integration?” she asked. “There are disintegrative tendencies within the EU — the eurozone crisis was one, and the migration crisis currently, where there is a strong tension with eastern European countries.”

Germany’s fear of encouraging these centrifugal forces has dictated a cautious strategy. Berlin has largely avoided making explicit concessions to London, while signalling its willingness to listen.

Ms Merkel’s visit to Britain last month, when she was hosted at Chequers by David Cameron, and Mr Osborne’s reception in the German capital this week, were demonstrations of this willingness. Mr Osborne is holding talks with Wolfgang Schäuble, Germany’s finance minister, on Monday evening and is due to address business leaders at the annual conference of the BDI, the German industry association, on Tuesday morning.

The friendly personal relations that exist between British and German leaders do not mean negotiations will be easy. As Britain’s demands have become clearer, there is disquiet in Germany over some of the substance of the reform proposals.

David Cameron is under pressure from all sides and faces a delicate balancing act in attempting to renegotiate an acceptable UK membership settlement with the EU

In particular, revoking EU migrants’ rights to in-work benefits is seen as problematic, as it calls into question the free movement of EU citizens.

Extending veto rights to national parliaments is also regarded with scepticism in Germany, analysts say, because of the complexity that parliamentary votes added to the Greek bailouts.

There is sympathy among German policymakers for the political pressures the British government faces, though some German analysts say Berlin finds it hard to grasp the full extent of eurosceptic feeling in the UK.

From a German perspective, the future of Scotland and the position of the opposition Labour party add further uncertainty. Berlin is unsure what line a Labour party led by Jeremy Corbyn will take over the EU referendum — and whether the Corbyn leadership will even last that long.

Dr Schwarzer said: “In general there is a lot of concern about the stability of the UK as an EU member, not just because of Brexit but because of the Scottish question, which people think is not solved.”