Wednesday

18th Oct 2017

France and Germany head into summit divided, UK seen as sidelining itself

  • David Cameron (second from left, front row) - slowly saying 'bye bye' to the EU? (Photo: ecrgroup.eu)

The EU summit kicked off on Thursday (18 October) amid a public stand off between France and Germany on what should be discussed at the meeting and how to proceed with a banking union.

French President Francois Hollande arrived at the summit - having given a combative Berlin-critical interview to several European newspapers the day before - saying the only decision needed at the summit was on having a banking union by the end of the year.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

It was a direct challenge to Chancellor Angela Merkel who has indicated she wants to move more slowly on the creation of banking union, which entails setting up a European bank supervisor.

But Merkel also came to the summit well-armed.

In an address to the Bundestag on Thursday morning she said the European Commission should have far-reaching powers to challenge national budgets.

She noted that even though the idea would be unpopular in some quarters - with France keen on retaining sovereignty in this area - Germany would "make the case" anyway.

The two leaders had a brief meeting before the summit. A German delegation source said it took place in a "good atmosphere" and that the summit programme for further development of economic and monetary union was discussed. French diplomats, according to Reuters, briefed that the two leaders agreed on the need for a tight timetable for a banking union.

The banking union - meant to prevent banks building up dangerous debt holes - has become the symbolic battle ground for the different stands of thinking in Berlin and Paris.

While Berlin wants fiscal discipline and centralised budgetary oversight before it will open its coffers, Paris wants more solidarity, particularly towards struggling countries - before committing to such ideas.

Both sides are increasingly frowning at one another in self-righteous incomprehension.

Adding to the strained dynamic of the summit - meant to be a no-decisions affair on how to further political integration - is the relation between euro and non-euro countries.

The UK

The eight mainly eastern non-euro countries that are obliged to join the single currency want to make sure that eurozone area decisions do not adversely affect them.

But one non-euro country in particular is stealing the limelight. Britain, which has no obligation to join the euro, is increasingly being seen as slowly disengaging itself from the EU.

Its notoriously lukewarm stance towards the Union was underlined when it refused to take part in a fiscal discipline treaty late last year and further emphasized when earlier this week announced it intended to opt out of 130 pieces of EU justice and home affairs legislation.

And in a symbolic move Prime Minister David Cameron for the first time since he became UK leader attended a pre-summit meeting with politicians from the anti-federalist Conservatives and Reformists faction that his Conservative Party aligns itself with in the European Parliament.

A post-meeting photo makes it clear, Cameron is not sitting with the power-wielders of Europe.

Remarking on the development, Finnish Europe minister Alex Stubb said Britain appeared to be slowly saying "bye bye" to the EU.

"I think Britain is right now, voluntarily, by its own will, putting itself in the margins," he told Reuters news agency.

Discord simmers ahead of EU summit

It is being billed - by the Germans at least - as a "stepping stone" summit leading to firm decisions on further EU integration in December. But others want answers now.

EU rejects UK claim it's slowing Brexit talks

The EU is "not confident, but hopeful" that the UK will achieve sufficient progress for 'stage 2' by December, as Britain's Brexit negotiator blames the slow pace of negotiations on the EU ahead of a crucial summit meeting.

News in Brief

  1. Spanish Court declares Catalan referendum law void
  2. EU to keep 'Dieselgate' letter secret
  3. No deal yet on Mediterranean alliance for EU agencies
  4. EU Commission condemns Maltese journalist's murder
  5. Poland denies wrongdoing over forest logging
  6. Risk to asylum kids in EU increasing, says charity
  7. Schroeder warns of Turkey and Russia drifting towards China
  8. EU parliament wants equal pay for posted workers

Stakeholders' Highlights

  1. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  2. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  3. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  4. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  5. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  6. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  7. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  8. CECEE-Privacy Regulation – Hands off M2M Communication!
  9. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  10. EU2017EEEHealth: A Tool for More Equal Health
  11. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  12. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year

Latest News

  1. EU rejects UK claim it's slowing Brexit talks
  2. Nepal troops arrive in Libya to guard UN refugee agency
  3. Is Banking Authority HQ the Brexit 'booby prize'?
  4. EU-Russia trade bouncing back - despite sanctions
  5. No sign of Brexit speed-up after May-Juncker dinner
  6. EU defence strategy 'outsourced' to arms industry
  7. EU privacy rules tilt to industry, NGO says
  8. Malta in shock after car bomb kills crusading journalist