German Chancellor Angela Merkel told Prime Minister David Cameron she did not support the kind of fundamental reform of the European Union he wanted, but said Britain should stay inside the bloc to help make it more competitive.
In a speech to both houses of Britain’s Parliament – only the third time a German leader had spoken there since World War II – Merkel, the leader of the EU’s most powerful state, ruled out the prospect of a far-reaching overhaul of the bloc’s treaties, signalling she was open to modest reforms only.
“Some expect my speech to pave the way for a fundamental reform of the European architecture which will satisfy all kinds of alleged or actual British wishes. I am afraid they are in for a disappointment,” Merkel said in English.
“Others are expecting the exact opposite and they are hoping that I will deliver the clear and simple message here in London that the rest of Europe is not prepared to pay almost any price to keep Britain in the European Union.
“I am afraid these hopes will be dashed,” she said.
Cameron has pledged EU renegotiation, membership vote
In London for a one-day visit, Merkel was speaking at a time when uncertainty about Britain’s future in the EU is rising because of a promise by Cameron to offer Britons a referendum on whether to leave the 28-nation bloc or not, if he wins a national election next year.
Under pressure from eurosceptics in his Conservative party and from the anti-EU UK Independence Party (UKIP) ahead of European elections in May and next year’s national vote, Cameron has promised to try to reshape Britain’s EU ties first.
He has not spelt out all the reforms he wants, but made clear he wants to curb freedom of movement for people from poorer new EU member states, combat pan-EU “welfare shopping”, cut swathes of EU red tape and improve competitiveness.
Switching between her native German and English, Merkel delivered her speech in one of the British Parliament’s most ornate rooms with Cameron and the rest of the country’s political elite sat in the front row hanging on her every word.
Hers was a delicate balancing act: to be seen to be giving Cameron, a centre-right ally, some support in his politically fraught quest to claw back powers from Brussels, while making it clear that her backing went only so far.
Dressed in a trademark trouser suit with a blue jacket, Merkel praised Britain for its role in safeguarding freedom in World War II, for its pivotal role in transatlantic relations, as an important German ally, and a vital member of the EU.
“We need a strong United Kingdom with a strong voice inside the European Union.
“If we have that we will be able to make the necessary changes for the benefit of all,” she said.
She indicated she supported Cameron’s bid to clamp down on abuse of the EU’s freedom of movement rules when it came to welfare benefits and partially backed his drive to rein in the European Commission. She said Britain would have a chance – along with everyone else – to submit proposals for reform once deeper integration of the eurozone had happened.
“It is not a piece of cake, it will be a lot of work,” Merkel said. “If we want Britain to remain in the European Union, which is what I want, if one also wants a competitive union that generates growth, one can find common solutions.”
Proposals would be judged on whether they bolstered the euro’s “economic strength”, she said.
In comments that will please Cameron, she thought EU red tape should be cut, that unnecessary EU laws should be junked, and the EU principle that member states do things at national level when sensible should be respected.