Germany seeks to give Britain EU leeway — but not at any price

David Cameron, the British prime minister, left a good impression after his recent visit to Berlin. He talked politely about his hope ffor EU reform, ahead of a referendum on membership before the end of 2017. Yet senior German figures worry about the imminent British "renegotiation". They fret that Britain’s toxic domestic debate on Europe may drive Mr Cameron towards tactics that prove counter-productive and demands for change that are unachievable.

The Germans fear that British ministers may adopt the blunt, win-or-lose negotiating style that prevails in Westminster but not in the consensus-seeking EU, and thereby lose potential allies. Another worry is that many Britons assume the renegotiation will be mainly a bilateral conversation with Germany. The Germans stress that, though they have influence, 26 other countries matter too, as do the European parliament and commission. And they ask whether Mr Cameron may put party unity ahead of winning the referendum: a few days ago, after he had said that Conservative ministers would have to back him in the campaign, he changed his mind under pressure from backbenchers.

The Germans stress that, though they have influence, 26 other countries matter too, as do the European parliament and commission. And they ask whether Mr Cameron may put party unity ahead of winning the referendum: a few days ago, after he had said that Conservative ministers would have to back him in the campaign, he changed his mind under pressure from backbenchers.

The biggest concern in Berlin, however, is that many of Britain’s demands may be impossible to satisfy. Take Mr Cameron’s priority of limiting EU migrants’ rights to in-work benefits such as tax credits. The EU treaties ban discrimination over conditions of work — which include in-work benefits — on grounds of nationality. The Germans regard that principle as fundamental to the EU and know that the Poles and many others would never agree to scrap it. (The UK could, however, more easily restrict access to unemployment benefits.)

Another British priority is "safeguards" for the single market, against the risk of the euro countries caucusing and then imposing their wishes on the wider EU. Financial regulation is a particular concern, given its impact on the City of London. But German officials are unsympathetic, pointing out that the eurozone governments never have caucused. They suspect that the UK is really after a veto for the City on financial rules — which they would view as an unfair privilege for one member.

A third demand is for national parliaments to play a bigger role in curbing unwarranted EU laws. The treaties say that if a third of the parliaments raise a "yellow card" against a draft law from the commission, it must withdraw or justify the measure. But although several governments share London’s desire to strengthen this procedure, Germany does not. It worries that more yellow cards could slow down or stymie the passage of essential laws.

One thing that London and Berlin can agree on is that the EU should be more competitive — forging trade agreements with other parts of the world, cutting back red tape and extending the single market. But the new European Commission is already doing these things.

They may also be able to agree on the methods for delivering reform. Mr Cameron says there needs to be “treaty change”. A proper revision, involving ratification by all 28 member states, could not be completed before his referendum. But Angela Merkel is open to the possibility of a document promising treaty change at some point in the future. The Danes were given a set of promises in 1992, after voting against the Maastricht treaty. However, a list of promises to the UK would need the approval of every member state, so could not touch on sensitive topics such as freedom of movement.

The Germans’ desire to keep Britain in — not only for its economic liberalism, but also to prevent Germany’s own power becoming too preponderant — makes them keen to help Mr Cameron. But not at the price of abandoning the EU’s core principles, which would be even worse than Brexit, say senior German figures.

The writer is director of the Centre for European Reform.