Angela merkel

The EU budget negotiation, now a month away, promises to be David Cameron’s next big European test. The Prime Minister has repeatedly declared that he wants to see the EU budget frozen at 2011 levels and that he’s prepared to use the need for unanimity to achieve that. The Economist this week has a very useful scene-setter for the budget talks. It sketches the contours thus: ‘Countries are coalescing around loose (yet often divided) groups. There are the ‘friends of cohesion’: the net recipients of regional spending, such as Poland, Hungary and the Baltic states. And there are the ‘friends of better spending’: the net contributors, such as Germany, France,

David Cameron appears to be looking for a suite of examples for his party that he’s still fighting their corner. He’s about to deliver his speech on offenders, and his spokesman has just suggested he’s up for a real scrap on the European Union budget, too. The FT’s splash this morning is that Angela Merkel is threatening to cancel next month’s European budget summit if Britain refuses to approve any other deal than a total freeze on spending. The paper reports that Merkel believes there is no point in holding the summit if Cameron is going to veto any deal on the table. The problem for the German Chancellor is

The Prime Minister and Angela Merkel spoke last night on the phone to discuss the European Council meeting later this week. Downing Street said the pair ‘agreed that further work is needed before agreement can be reached’ on banking union, which is a coded acknowledgement that David Cameron is concerned the current proposals are not in Britain’s interest and do not currently protect the single market and that he will push for greater compromise when leaders meet. This is all part of the Prime Minister’s big Europe week. He has a Cabinet meeting this morning, and as its members are increasingly piling pressure on Cameron for a referendum on Britain’s

In case you were in any doubt about how committed eurozone leaders are to the survival of the single currency, Angela Merkel has put out another statement on doing ‘everything possible to protect the eurozone’, this time with Italian Prime Minister Mario Monti. The pair had a phone conversation on Sunday and their remarks follow the joint statement released by Merkel and François Hollande on Friday, and Mario Draghi’s announcement last Thursday that the European Central Bank would do ‘whatever it takes’ to protect the euro. The markets are looking forward to something decisive later today as US Treasury Secretary Tim Geithner arrives in Europe to meet German finance minister

If feminism is ‘a creed of women’s solidarity’, do you pick and choose about which women you’re in solidarity with? In the case of Harriet Harman, the answer is, well obviously. If you’re a Tory you can’t really join in the creed. In an interview with Total Politics magazine she was incredulous at the notion that the Home Secretary, Theresa May describes herself as a feminist. ‘If you’re actually political, you can’t be a Conservative and a feminist,’ she said. So there you have it. But why? Because it’s ‘all about equality and fairness’. ‘Ultimately, delivering for women in this country – in equality, childcare, helping with the elderly, maternity

After Merkel’s decision to allow Eurozone funds to be used to bail out Spanish and Italian banks, the press tomorrow may declare – yet again – that some kind of breakthrough has been reached and that the Teutonic queen of austerity has been forced down from her throne. But, as ever with the Euro summits, there is less – far less – than meets the eye. Here’s my take:  1. Growth pact. Any pact representing no more than 0.0096 per cent of Eurozone GDP is hardly going to have a discernible effect, so let’s not pretend otherwise. 2. About those no-strings bailouts. It seems countries can access bailout funds without

Things in Greece could have been worse after yesterday’s election, but that fact can’t be hailed as a ‘turning point’. Assuming that Greek political leaders form a coalition and push ahead with EU-mandated reforms, which is a very likely outcome given that Greece may only have enough cash in its coffers to soldier on for another month, any such government will inevitably include parties that completely disagree on how to resolve the crisis. The only glue would be the fear of economic catastrophe. This uneasy government would be ill-suited to withstand pressure from Syriza and the rest, who will spare no effort in blaming it for the inevitable economic pain.

‘No’ used to be the French prerogative in matters of European integration. Charles de Gaulle made a late career out of it. But perhaps the title is passing to Britain. David Cameron indicated yesterday that he would veto any EU banking treaty that did not safeguard the City, as James said he would. Meanwhile, George Osborne joined Cameron in recognising that a European banking union, under design by ECB president Mario Draghi, is necessary if the euro is to survive. Angela Merkel agreed, saying that the answer to the present crisis was more Europe everywhere, only at a pace that suits weary German taxpayers. This sedate approach is becoming unsustainable.

I doubt that Angela Merkel is looking forward to the G8 summit very much. It will mostly consist of the other world leaders telling her to give ground on austerity. But I suspect that Merkel won’t budge much, if at all. She clearly believes that the Greeks can be whipped into line by telling them that the election is really a referendum on euro membership. Hence both her suggestion of a simultaneous referendum on election-day and her backing for the European Central Bank cutting off support to Greek banks which shows that while there’s no formal mechanism for ejecting a country from the single currency there are ways of doing

David Cameron’s speech today is a sign of his frustration with the eurozone. Numbers 10 and 11 are increasingly irritated by how eurozone leaders are refusing to accept the logic of their project. What Downing Street is keen to avoid is another wasted year as Angela Merkel gears up for her reelection campaign. So, intriguingly, we see Britain throwing her weight behind Hollande’s support for project bonds. Cameron also uses the speech to again back eurobonds, which Merkel is firmly opposed to as she knows that this would mean Germany effectively standing behind everyone else’s debt. I can’t see a resolution to this crisis coming anytime soon, though. The economics

Now that negotiations have broken down in Athens, and there will be another election, we face the prospect of an almighty staring contest. On one side, the Eurocracy, who will be urging Greek political parties — and particularly the left-wing coalition Syriza, which is ahead in the polls at the moment — to soften their anti-austerity stance. On the other, the Greek politicians, who might be hoping that the eurozone relents to some extent, and allows the cuts to be decelerated. The question is: who will blink first? As it stands, it’s difficult to come up with an answer. The leader of Syriza, Alexis Tsipras, is unlikely to blink over