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Cameron phones potential eurosceptic allies

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Published 15 December 2011, updated 22 December 2011

British Prime Minister David Cameron held telephone talks yesterday (14 December) with potential allies in the European Union as he seeks to avoid isolation after vetoing EU treaty changes to allow closer fiscal union by eurozone members. 

Britain, the EU's third largest economy, was left on its own when 26 of the 27 member states led by Germany and France agreed on 9 December to press ahead with a separate treaty for deeper economic integration to save the euro currency.

Cameron, who vetoed an EU-wide agreement after failing to win safeguards he had sought for Britain's important financial services industry, has held phone conversations with several EU leaders in the last two days, his spokesman said.

He said Cameron spoke to Czech Prime Minister Petr Nečas and Swedish Prime Minister Fredrik Reinfeldt on Wednesday and to Irish Prime Minister Enda Kenny on Tuesday.

The Czech Republic and Sweden are seen as possible waverers on a fiscal convergence deal, while Ireland is worried about a proposed pan-European financial transactions tax that could hurt its financial services industry while bypassing nearby Britain.

Cameron assured all the leaders that Britain wanted the new arrangement to succeed, but said that without the safeguards he sought it was best that the 17-nation eurozone proceeded outside the EU's Lisbon Treaty, his spokesman said.

Cameron told the other leaders that "Britain ... wanted to find the right way forward that preserved the proper role of the EU and its institutions as the guardian of the treaties and the single market," the spokesman said.

Non-eurozone member Britain has raised concerns about EU institutions it says are intended for all 27 states, such as the European Commission and the European Court of Justice, being used to enforce any new eurozone agreement.

Cooperation

"In each call the leaders agreed to build on their close cooperation on EU issues, especially promoting jobs and growth through the single market. They agreed that the priority for the European economy remained comprehensive and decisive action to deal with debt and increase competitiveness," Cameron's spokesman said.

Several of the non-eurozone governments that went along with the new inter-governmental plan on fiscal union, including Sweden, Hungary and the Czech Republic, still need parliamentary approval before they can give their full backing to the move.

Sweden said on Tuesday it was uncertain about signing up to the pact, raising the possibility of it joining Britain on the sidelines.

Ireland warned on Wednesday its financial services industry may be at risk from Britain's opt-out. Britain's decision could also cause political problems for the Irish government, which is keen to avoid putting its participation in the new fiscal union to a referendum.

Cameron also held a private meeting on Wednesday evening with legislators from his centre-right Conservative Party.

Members of Cameron's largely eurosceptic party were pleased with his veto but it has caused a rift with his junior coalition partner, the pro-European Liberal Democrats.

The Guardian newspaper quoted one senior Conservative as saying Cameron told the meeting that there was "no question" of there being 26 EU member states against Britain.

"There are a number of countries that are not all sure what they are being asked to sign up to," the source was quoted as saying. A spokesman for Cameron declined comment.

EurActiv.com with Reuters

COMMENTS

  • It is strange that UK is protecting the Lisbon Treaty, which currently contains serious mistakes. One extremely funny example -- Annex I to the Lisbon Treaty. IT IS CONSTRUCTED ON THE BASIS OF NON-EXISTING FOR MORE THAN 20 YEARS BRUSSELS NOMENCLATURE. It would be useful for the cabinet of Mr. Cameron to check this scandalous fact in order to know -- what they are vetoing.

    By :
    Vetoed Treaty contains serious mistakes
    - Posted on :
    15/12/2011
  • It is a pity that Mr D Cameron does not realise that this isolation - one in 27 - will mean that there will be a wholesale rout of the UK Currency during the next few weeks.

    No one I have spoken to in the EU cares what the UK will do since they will gradually close down trading with the UK as a result of this.

    By :
    Paul Hu
    - Posted on :
    15/12/2011
  • Paul Hu - you need to look around you a bit more. Below are some of the media comments around the EU where realisation regarding the bunch of clowns runnming the show just now is beggining to emerge.What happened last week was a farce which will neither save the euro nor create fiscal responsibility in the future. Who teh hell do you think were the first to break the 3% GDP rule? France and Germany!! Well, there's a surprise!!! And if you really think the Greeks are going to continue with life as it is for the next 9 years only to halve their deficit, you must need some medical treatment.

    In Poland, Arkadiusz Mularczyk, a senior MP for the Conservative Solidarna Polska party, went as far as to argue that:

    "[Polish PM] Tusk should learn from Cameron's diplomacy"
    A leader in Welt am Sonntag entitled: “Britain: Please come back!” argued that:

    “Should the UK actually leave the EU, the Union would lose not only the cradle of European democracy, but also one of its founding members - and the most important financial centre of the old continent”.
    On Monday, in Sweden's main daily Svenska Dagbladet, EU-expert Roger Älmberg wrote that:

    "[Sarkozy and Merkel] Needed to identify Cameron as a scapegoat to paper over their own conflicts...the details that will emerge [from the EU deal in March] will most likely lead to more than the UK feeling excluded.”
    A leader in Sweden’s largest tabloid, Expressen, noted that Cameron may have ended up outside the EU’s core structure, but that it was also “hard to find arguments” for Sweden to join Merkozy’s pact, since:

    “There are no plans or political majority for joining the euro. Besides, Sweden doesn’t like that the euro countries go off on their own outside the Treaties.”
    Meanwhile in Belgium, Baroness Mia Doornaert, a well-known Belgian commentator and former advisor to the former Belgian PM, Yves Leterme, argued in De Standaard:

    "David Cameron says no to a new European treaty, while listening to his English voters, and is accused of being someone who "blackmails" Europe. Twenty six other government leaders and heads of state don't give their parliaments but European bureaucrats control over their budgets...this kind of top down integration carries the risk that democratic support for the Union shrinks. Europe and democracy: for now they don't seem together. Unless you consider it democracy that elected leaders in Brussels agree upon common measures which they can't or don't dare to push through in their own countries."
    There was also nuanced remarks from Dutch magazine Elsevier’s EU correspondent Carla Joosten, who commented that:

    "[Cameron's] fear of European rules which would hit the heart of the British economy, the financial sector in London... isn't unjustified. It wouldn't be the first time that France and Germany are trying to get rid of competition elsewhere in the Union. French President Nicolas Sarkozy keeps on repeating that the City of London is at the heart of the crisis. It isn't of course that simple. The British have already cleaned up their banking sector better than the French and the Germans together."
    The Irish Independent's chief critic, Bruce Arnold yesterday wrote a piece somewhat dramatically entitled "We need to strengthen UK ties before EU strangles us", in which he argued:

    "That is now overshadowed by the darker figures of Angela Merkel protecting German interests, Sarkozy protecting French interests, and doing so with greater skill and duplicity than we have seen before. David Cameron has seen what this would do to British interests and backed away. We should do the same."
    This theme continued this week, with Tuesday's Handelsblatt's editorial arguing that:

    "Even under normal circumstances it would have been hopeless to expect Cameron to approve the EU's conversion into a fiscal union as a first step towards political union without receiving anything to show for it at home. But given that the justification for this step was the rescue of a currency the logic of which the British still doubt today it was utterly impossible…It would be better now to focus on what the two sides still have in common and what can serve both their interests instead of ranting against the Britsh. And a functioning common market is right at the top of the list here."
    While worrying about the UK’s ‘departure’ an editorial in El Pais claimed that:

    "From development cooperation to a European research area, many European projects would look very different today without the UK's influence. And it's difficult to imagine that without the UK the EU would have dared to break up hugely influential national monopolies like the telephone companies or airlines. If the UK leaves, the EU will lose not only military, academic and financial clout but also a country that has demonstrated that it is much better able to renew its public administration and policies than continental Europe"
    Spanish regional paper Las Provincias argued that:

    “Despite doubts, the UK contributes much to the EU in economic and political reforms, and one should avoid reading the pact as a new battle between Europeans, with winners and losers.”
    In this week's Spiegel magazine, London correspondent Marco Evers criticises Cameron’s decision to veto EU Treaty change, but concludes that:

    “Despite all the anger, [the British] might soon be missed… ironically enough, it might just be the Germans who regret losing the United Kingdom. London's dedication to free trade, to the rule of law and to having things run in an orderly manner is not so easy to replace. Berlin is losing a partner who was a dependable counterweight to the club of those slack states in southern Europe whose freewheeling financial policies the restrained Germans have always abhorred.”
    All in all then, to paraphrase Mark Twain slightly, it could be said that reports of the UK’s death in Europe have been greatly exaggerated.

    By :
    Don Latuske
    - Posted on :
    15/12/2011
  • What ever UK has voted it's veto is one thing. What I cannot understand is ''What does UK want from the EU''Perhaps playing 'see saw'between West and the EU.
    This game has to stop, either UK is In or Out. We are either ONE or each of the 27 countries looking for their own interests and what each can gain for free, irrespective if the EU remain to stand as a Union or not.
    A little note to the EU, is that hardely enough information is passed to the citizens of the 27 countries by their goverments. This is very distressing and the life or death of the EU. We see the EU as dictators and Tax collectors, and to implement law changes takes time and at times never considered important by goverments to their citizens.
    What the EU leaders had to say in conferances is hardly given the importance required in the press. The EU looks as if only Merkel and Sarkosy has bright ideas, the others are dead wood.

    By :
    Anonymous
    - Posted on :
    15/12/2011
  • Dear Don Latuske,

    You seem to be pretty informed how much the good old Uk will miss us if she leaves the EU. I already start to cry actually. The biggest "producer" of financial services, trousers and candies=UK will miss only to a guys like you: dedicated to prove the "virginity" of the good old stealers, the football fans, the terrorism providers and so on and so on.
    I'm really sick of such protective blablas.
    So long UK, long live the Queen, the prince the princess !

    By :
    Cyril
    - Posted on :
    15/12/2011
  • Is it just me or is this a desperate scramble to bring someone - anyone - on board? If so, it's probably too late, because I can't think of anything that the UK can offer the Czechs etc. which would make it worthwhile for these countries to take the UK's side. "Come and join me outside the playing field' doesn't quite cut it for me. IMO and all.

    By :
    FestinaLente
    - Posted on :
    15/12/2011
  • Paul Hu - "No one I have spoken to in the EU cares what the UK will do since they will gradually close down trading with the UK as a result of this"

    Of course they will, they really hate selling us all those cars, trains, planes, cheeses, wines, etc etc etc etc.

    What planet are you from?

    By :
    charles
    - Posted on :
    16/12/2011
  • Charles,

    You are absolutely right, but do you think that UK is thaaaat important for the Germans to sell their BMWs?? I guess the British will drive their mini's to the end of their lives. What do you say about that???
    As I see the way you think, is you planet perhaps called UK?

    By :
    Jack the ripper - UK
    - Posted on :
    16/12/2011
  • Jack (the Ripper)

    See Eurostat - http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-16122011-BP/EN/6-16122011-BP-EN.PDF

    Jan - Sep 11 Eurozone exports to UK 158.3 billion Euro
    Jan - Sep 11 Eurozone imports from UK 122.6 billion
    (exports to USA by comparison 145.4 billion Euro)

    So I do think the UK is thaaaat important to Germany, France and the rest of them. To suggest trade will close down (Paul Hu) is plain stupid.

    By :
    charles
    - Posted on :
    16/12/2011
  • Charles,

    Of course the import-export rate now is pretty fascinating, as all those countries were "privileged partners" within the EU (why do you think Cameron boosts his phone bill, to tell jokes on the Belgians??, to look for new partners. Sarkozy or Merkel don't call their friends and looking for alies).
    Summa sumamrum: If UK gets out the EU those numbers would be affected (UK=less export, much less export), given that situation a little child could calculate the economic benefit/lost for the both sites. I don't deny that myself, UK is important. It is stupid to think that trade will close down, but it is OH-SO-STUPID as well to think that this fact will only impact the rest of the EU countries and to think (and write) that UK is the only one "who's gonna smile at the end". My dear Charles, it is a "anti-thought"only a UK football fan would think of.
    UK is not the oxygen of the EU, maybe a little alveole one cortcosteroid (Brazil) could help heal pretty fast.
    Cheer mate !

    By :
    Cyril
    - Posted on :
    16/12/2011
  • Calm down, guys! UK is NOT going to get out of the EU, you know that, don´t you? Both sides are wery well aware of their interdependence. What we see today is partially a PR war and partially the positioning before the next stage of the crisis. It is not over yet. Nothing has been solved, the drama, the comedy and the tragedy wil contunue.

    By :
    Anonymous
    - Posted on :
    18/12/2011
Background: 

An agreement to tighten fiscal discipline in the wider EU-27 proved impossible at the 8-9 December EU summit, after UK Prime Minister David Cameron made "unacceptable demands" to exempt London's financial district from financial market regulations. [more]

Faced with a UK veto, EU leaders agreed that a new intergovernmental treaty should tighten fiscal discipline in the eurozone and address the bloc's debt problems. The treaty will be drafted by March 2012 and opened to ratification by nations outside the 17-member eurozone.

At least six additional countries have agreed to sign up – Bulgaria, Denmark, Latvia, Lithuania, Poland and Romania.

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