The German chancellor, Angela Merkel, is to tell David Cameron that Britain does not need to hold a referendum on EU treaty changes, despite demands from senior Conservatives for more powers to be repatriated to Britain.
The letter, written by the German foreign office, was leaked and it revealed some plans for an intrusive new European body that can manage to take over the economies of beleaguered eurozone countries.
It also disclosed that the EU’s largest economy is preparing for other European countries, which are too large for being bailed out, to default on their debts — effectively going bankrupt.
It will cause some fears that German plans to deal with the eurozone crisis involve a collapse of national sovereignty that could pave the way for a European “super state” with its own tax and spending plans set in Brussels.
Cameron to go to Brussels and Berlin to discuss with Merkel growing disagreement between the leaders over how to rescue the eurozone and to urge the Chancellor to do her best to end the crisis wreaking havoc on the economy in the UK and across the world.
“Chancellor Angela Merkel is prepared for the possibility that Greece’s new government refuses to carry out the tough austerity programme required of it in return for the next tranche of the EU-IMF bailout,” said German magazine Der Spiegel.
“It would be the first step towards a vision of ‘political union’ that would have major consequences for the future of the entire EU, and therefore the UK’s place within it,” said Stephen Booth, Open Europe, a think tank’s research director.
“Merkel is daring Cameron to call her bluff, but if the UK is serious about taking a leadership role in shaping the EU, Cameron will have to take a stand sooner rather than later.”
The Prime Minister is discontented with Germany’s refuse to provide more financial help for Italy and other ailing countries cause talks that the crisis is having a bad influence on the British economy.
Angela Merkel announced that she expected Cameron to “examine a stronger involvement with other countries” once the eurozone crisis had been resolved.
“We’ve seen a sovereign debt crisis evolve in some states and particularly those in the eurozone find themselves in the international focus,” she said.
“It was right of David Cameron to concern himself with the UK’s debt issues when he became Prime Minister — that’s my firm conviction, and once the negative focus has moved away from Europe, he will examine a stronger involvement with other countries.”
So, German foreign ministry secret plan is to create a European Monetary Fund with a transfer of sovereignty away from member states.
The fund will have enough powers to take the “problem” countries into receivership and run their economies.
The document has a title ‘The future of the EU’: required to improve policy for the creation of a Stability Union, declares that the treaty changes are a first stage “in which the EU will develop into a political union”.
“The debate on the way towards a political union must begin as soon as the course toward stability union is charted,” it said.
The document also explicitly implies possible ways to limit treaty changes to speed up the reforms. It indicates that Merkel will tell Cameron to rule out a popular EU vote in Britain.
Officials of senior government confirmed their dropping a previous demand that EU powers are better to be “repatriated” to Britain in return for the treaty changes requested by Germany, a step that will anger Conservative MPs.