Chancellor Merkel's Difficult Battle in Brussels

Spiegel
December 8, 2011

Britain wants concessions. The Czech Republic is concerned referendums triggered by treaty changes. And top EU officials have reintroduced alternatives that German Chancellor Merkel has already rejected. On the eve of a crucial EU summit in Brussels, Berlin is not amused -- and has made it clear that compromise is not an option.

It is a tone that one rarely hears from Berlin on the eve of a major European Union summit. "We have the impression that some actors still haven't recognized the seriousness of the situation," a senior German government official told journalists in Berlin on Wednesday.

There are many, the official added, "who are very generous and very quick when it comes to finding new sources of financing, but have difficulties when it comes to addressing the deficiencies with the euro's design." In order to stabilize the euro, no "baby steps" will be sufficient. And there can be none of the "typical Brussels trickery" that could result in a compromise deal short of what the public and the markets expect.

Corrections to the EU's treaties are essential, the official said. "We aren't going to make any lazy compromises." Not exactly the kind of diplomacy one might expect from Berlin as Chancellor Angela Merkel heads to Brussels.

But if Merkel's goal was to dramatically increase the pressure on the other 26 EU leaders who will attend the meeting, she certainly succeeded. Merkel is intent on establishing a strict new culture of stability, with rigid regulations regarding state debt and budget deficits in addition to severe and automatically imposed penalties for countries that violate those rules. She and French President Nicolas Sarkozy agreed to the framework of such a deal on Monday. In order to make that happen, EU treaties will have to be modified.

The targets of the unusually strong verbal attack by Germany are clear. They are aimed at countries that have questioned or expressed objection to the Merkel-Sarkozy stability plan as well as those who are seeking concessions or want to water the plan down in other ways.

The detractors are led by Britain. In a guest editorial in the Times of London newspaper, British Prime Minister David Cameron offered the prospect of accepting changes to the European treaties, but at the same time demanded concessions in an editorial titled, "Yes to treaty change - but only on our terms." The key condition demanded by Cameron is that Britain be excluded from financial market regulations. "Our requirements will be practical and focused," he wrote. "But euro-zone countries should not mistake this for any lack of steel."

Cameron's demands are the product of significant domestic political pressure. Within his own party, euroskeptics are breathing down his neck. It is only with great effort that he is able to keep them at bay. In October, 81 conservative members of parliament defied Cameron's orders to vote against a call for a referendum on Britain's future membership in the EU. If Cameron comes back from Brussels empty handed, he will be viewed as having given the nod to a German dictate and could face a political revolt back home.

"If David does not set out his stall in a clear and coherent manner then the Tory party will pretty much become impossible to manage," one senior Tory told the Daily Mail newspaper. "He will face a rebellion which makes the last one look like a tea party -- and you'd see resignations."

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