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David Cameron is already irritating European leaders with his refusal to support any real-terms increases in the multi annual EU Budget, but this week, the Prime Minister is going to come under pressure to go even further and force a real-terms cut. This morning, he has Ed Balls and Douglas Alexander breathing down his neck, with a piece in the Times arguing that a cut is ‘difficult but achievable with the right leadership and the right approach from the UK’. In his own party, Liam Fox says it is ‘obscene’ to ‘even increase for inflation the inflated wages of the eurocrats’ and is arguing in a speech today that weaker

In The Spectator this week, Charles Moore argued that David Cameron — despite his oft-stated desire to renegotiate the terms of Britain’s EU membership — doesn’t actually have a European policy. Charles’ criticisms have clearly stung. For in his Telegraph column, he outlines what post-2015, the Conservatives would seek in any renegotiation: “In essence, the scheme is to turn the EU into two concentric rings. The inner ring shares the euro and undergoes political union. The outer ring avoids both these things and has a looser, trading membership grounded in national parliamentary sovereignty. You could say that this split already exists, in fact if not in theory, but the difference

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 had lunch with Herman van Rompuy in Downing Street today to discuss the UK’s position on the EU budget. Despite the Prime Minister’s tough talking in public about his determination to veto any real-terms increases in the money available for the multi-annual budget, the Downing Street spokeswoman refused to confirm that there was in fact any mention of this threat at today’s meeting, which Nick Clegg apparently popped into briefly. She said: ‘Discussions focused on the multi-annual budget. Both the Prime Minister and the Deputy Prime Minister made clear the Government’s position that we do not support a real-terms increase in the EU budget. They reiterated that at

Throughout his statement on the European Council, David Cameron seemed slightly irritated. One sensed that the headlines of the last few days have rather got under his skin. Cameron began by declaring that the Council meeting had made ‘limited progress’, which is hardly much to report to the House. He also was unable to resist another pop at Chris Bryant; complaining that he still hadn’t apologised to him when the Labour MPs asked a question. It was striking what a pro-European tone Ed Miliband took in his response to Cameron. It was all about how Cameron was losing control of his party over Europe and needed more friends there. When

I don’t suppose too many Coffee House readers will have noticed, but the EU is currently without a dedicated health commissioner. This is because the holder of that important office, a nondescript former Maltese politician called John Dalli, resigned last week in connection with an alleged lobbying scandal. So, until they can find another nondescript Maltese politican to replace him (the country’s foreign minister looks as if he is to be the lucky guy), our health needs at euro level are in the acting hands of one Maros Serfcovic, a Slovak, who is also the Commission’s commissioner for administration. This makes him the EU-equivalent of Jim Hacker, the Minister for Administrative Affairs,

David Cameron is determined to renegotiate the terms of Britain’s EU membership. But to get a good deal and to show his own eurosceptics  – let alone UKIP voters  – that he’s serious about this, he is going to have to be prepared to say that he would be prepared to leave if the rest of the European Union doesn’t play ball. (This poker game is why the other northern European countries that Cameron is relying on to help him secure a better deal have been quick to suggest that they wouldn’t mind Britain leaving that much.) Cameron, though, is highly reluctant to do this. Not only does he think

Yvette Cooper was in a stern mood this afternoon when she responded to the Home Secretary’s announcement about plans to opt-out of 130 European law and order measures and then re-adopt those which it fancies. Her main gripe was that she hadn’t been sent Theresa May’s statement about the plans until 45 minutes before it was delivered in the Commons, but she was also peeved about the content. The Shadow Home Secretary argued that ministers ‘haven’t actually told us anything today at all’, arguing that the different limbs of the coalition were doing entirely different things on this matter. While David Cameron had spoken about an opt-out, Nick Clegg had

When it came to the passage in his speech on Europe, William Hague was clearly building up to a crescendo. He thundered out the lines ‘which will require the fresh consent of the British people’, and then paused for what he expected to be a rapturous round of applause from a Tory audience thrilled to have received more red meat on Europe. The applause certainly came, but it wasn’t exactly full of enthusiasm; more a perfunctory round of clapping. The first thing holding back the cheers was that everyone in the hall had already heard this line. The promise had been that there would be more details at autumn conference

It’s no secret that the Conservative party is in a bit of a pickle about Europe at the moment, and Douglas Alexander quite wisely chose to exploit the ravine that is ever growing between eurosceptic backbenchers and the Prime Minister in his speech this morning. But where does Labour stand? Well, that’s still not entirely clear. This is what the shadow foreign secretary said about the Tories and Europe this morning: ‘Just two years into Government and that’s David Cameron in a nutshell: out of touch at home; out of his depth abroad. But what’s the Conservatives’ strategy for the EU? Nothing, it’s a blank page. What’s the Conservatives’ strategy

The merger of British BAE Systems with French giant EADS finds the government at a tricky crossroads for the future of the UK’s defence industry. Although merging with EADS threatens to rip the heart out of Britain’s largest defence firm, BAE has little choice. The firm has suffered from spending cuts on both sides of the Atlantic — 98 per cent of BAE’s business originates from the defence market and orders are in decline. Therefore a merger appears to be the obvious solution, allowing BAE to diversify and secure its future. But as the world’s third largest defence contractor, any kind of dilution of BAE has security and strategic implications.

Europe, as everybody knows, is one of those issues on which a Tory leader needs to pay particular attention to the words he uses. This makes David Cameron’s behaviour in recent weeks all the odder. First, we had that Brussels press conference in which Cameron sounded rather too enthusiastic about the EU for his own side’s tastes. This was followed by his Sunday Telegraph piece in which he stressed that ‘the two words “Europe” and “referendum” can go together’ for him. Now, those close to Cameron complain that the two positions were perfectly compatible and that in the first instance he was quoted selectively. But given the importance that it is attached

Ministers will be taking heart today that they seem to be finally breaking into buoyant markets outside the European Union. Figures from the Centre for Economics and Business Research show that for the first time the UK is exporting more to non-EU countries than it has been to its traditional main export market within Europe. Over the past three months, 51 per cent of British exports went outside the EU. Exports outside the EU have risen 13.2 per cent, while exports within the EU have fallen by 7.3 per cent. It is the first time since the 1970s, according to the CEBR, that non-EU exports have overtaken those inside the