Sebastian Payne

George Osborne adds meat to Britain’s EU reform demands

George Osborne is speaking in Germany today, where he will apparently tell a business conference that Britain does not want ‘ever-closer union’ and the other EU member states will have to respect and work with this, if they don’t want to see a Brexit:

‘Remain or leave, is the question our democracy has demanded we put because, quite frankly, the British people do not want to be part of an ever-closer union.

‘We want Britain to remain in a reformed European Union, but it needs to be a European Union that works better for all the citizens of Europe – and works better for Britain too. It needs to be a Europe where we are not part of that ever closer union you are more comfortable with.

‘In the UK, where this is widely interpreted as a commitment to ever-closer political integration, that concept is now supported by a tiny proportion of voters. I believe it is this that is the cause of some of the strains between Britain and our European partners. Ever closer union is not right for us any longer.’

If nothing else, the Chancellor has correctly sensed the British mood on the EU. As well as insisting Britain should not be responsible for any more Eurozone bailouts and making participation in the banking union voluntary, he is also going to call for business protections for countries outside of the Eurozone:

‘What we seek are principles embedded in EU law and binding on EU institutions that safeguard the operation of the union for all 28 member states. The principles must support the integrity of the European single market.’

The timing and location of this speech are interesting. As one of the key forces behind the renegotiation, Osborne knows that any new deal will have to be negotiated through Germany — hence him delivering this clear list of demands just 24 hours after meeting the German finance minister Wolfgang Schäuble.

So far, the Out campaign has gained momentum by pointing at the apparently insubstantial nature of the government’s demands for reform, arguing that there has a lack of detail and the desired outcomes from David Cameron and George Osborne have been disappointingly low. Osborne’s speech is an effort to counteract those claims and show that the government is serious about reform, but those campaigning for a Brexit are unlikely to be convinced by this rhetoric that the government will be able to pull off a magical new deal.

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