UK benefit reform demands appeal to rest of EU

Financial Times Financial Times
yesterday

Britain’s contentious push to curb EU migrant benefits is gaining political traction in Europe, with expectations of a February deal rising and countries such as France and Germany considering whether to introduce their own variants of the reforms David Cameron seeks.

At least five countries in the bloc are looking at taking advantage of Mr Cameron’s initiative in a sign that Britain’s EU negotiation is nearing its climax with the most hotly-debated elements — including a waiting time to access certain benefits — gaining wider appeal.

This suggests Mr Cameron is on course to secure a package of concessions on migration at a February 18 summit, including benefit restrictions and possibly an “emergency brake” to limit numbers during surges. This will allow him to call the EU membership referendum for June or July.

Austria, Denmark, France, Germany and the Netherlands see the British reforms as potentially offering new policy opportunities, in the face of pressure from populist and Eurosceptic opposition parties. “We will find it impossible to resist,” said one senior official from one of the countries, who is involved in the UK negotiations.

Even with the political will to find a deal for Mr Cameron, negotiations remain hard. Almost all EU leaders have rejected his original plan for a four-year ban on migrant workers accessing benefits; diplomats are scrambling to find an alternative compliant with the EU’s non-discrimination principles.

Negotiators are working on welfare measures that are potentially pan-European, rather than specifically tailored for Britain. The use beyond one country is encouraging for London but does carry the risk that Poland and other EU exporters of workers may become even warier. “It makes it even more important that the deal is proportionate,” said one eurozone official, noting that eastern European countries would not allow nakedly discriminatory measures.

Angela Merkel, the German chancellor, raised the idea of revisiting the “definition of a worker” in talks with Mr Cameron, according to two officials familiar with the conversation.

Germany, which has seen a rise in jobless or part-time claimants who recently arrived from other EU countries, has particular concerns about access to its so-called Hartz IV benefits. In December a Federal Services Court ruling also found jobless migrants are entitled to some social benefits after six months.

Citing Mr Cameron’s proposals, Thomas de Maiziére, German interior minister, said there was “possibly more to do” in restricting social payments. The centre-left SPD, Ms Merkel’s coalition partner, is sympathetic to these concerns; Olaf Scholz, a party vice-chairman, has backed barring EU migrants from social benefits for a year.

Paris, meanwhile, is also considering applying a version of the reforms, as ministers weigh how to neutralise the threat of Marine Le Pen’s far-right National Front, which has held Mr Cameron up as a role model for their Eurosceptic, anti-immigration agenda in Brussels.

François Hollande, the French president, expects Ms Le Pen to attack any deal with Mr Cameron which would give British migrants in France a better deal than French expats receive in the UK. Two diplomats familiar with the Elysée’s thinking said they saw little choice but to implement a variant on the Cameron reforms more broadly.

The Netherlands and Austria have long wanted to tighten migrant access to social assistance and curb so-called “benefit tourism”. Sebastian Kurz, Austria’s foreign minister, told the FT his country had “used its national scope of action to the maximum extent possible” and yet still saw people “migrate to our labour market, but soon thereafter they become jobless and stay in our very attractive social system”.

If treaty change is also needed in order to make the EU fit for the 21st century and closer to its citizens, then I am of the opinion we should not shy away from going this way

Sebastian Kurz, Austrian foreign minister

In a statement that Mr Cameron would interpret as strong support, Mr Kurz added that while reforms to existing EU legislation must be a first step, “if treaty change is also needed in order to make the EU fit for the 21st century and closer to its citizens, then I am of the opinion we should not shy away from going this way”.

Denmark has long sought to tighten access to out-of-work benefits for migrants, as well as end child benefit payments for migrants whose children are overseas, another item on Britain’s wishlist. Copenhagen has established a three-month waiting time for out-of-work benefits and would consider extending that period if the British package expanded the options under EU law.

Lars Løkke Rasmussen, the Danish premier, last month made clear the British package should benefit all EU members and he is facing pressure from the anti-immigration opposition Danish People’s party to take advantage of the UK reforms in full.

On Sunday a new poll of UK voters reported in the Mail on the Sunday gave the “Out” side a six percentage point lead. Former chancellor Lord Lawson, president of Conservatives for Britain, a Eurosceptic group, said the campaign to leave the EU would be led by a Tory cabinet minister.