German parties negotiating a coalition deal have recommended holding nationwide referendums for major decisions on Europe in what would be a dramatic shift in policy, but Chancellor Angela Merkel looks likely to quash the proposal.

The idea was spelled out in a document by one of the working groups discussing policy compromises to enable a government between Merkel’s conservatives and the centre-left Social Democrats (SPD).

It calls for referendums when new members join the European Union, when powers are transferred from Berlin to Brussels and when Germany commits money at EU level – which could limit its ability to act swiftly in a crisis.

But the proposal has yet to be approved by a larger coalition panel led by Merkel, and a senior member of her Christian Democrats (CDU) made it clear there was no consensus on the issue.

“As before, there are serious doubts about the introduction of referendums at the national level,” said Guenter Krings, a deputy leader for the party in parliament.

“Representative democracy has proven itself in Germany, including on European decisions, and we want to stick with this.”

Still, the document underscores the unease among German parties, particularly in the Bavarian Christian Social Union (CSU), with the democratic legitimacy of decisions to transfer competencies to the European Union and use German money to support struggling partners during the euro crisis.

While referendums are common in Ireland, Switzerland and some Scandinavian nations, Germany’s post-war constitution sets high hurdles, in part because plebiscites are blamed for helping Adolf Hitler’s rise to power.