Thursday

25th May 2017

Merkel under fire for siding with Cameron on EU budget

The German opposition has accused Angela Merkel of betraying Europe by siding with British leader David Cameron in negotiations on the EU budget, the first ever to be smaller budget than its predecessors.

"This budget is too small to achieve Europe's goals," Social-Democratic leader Peer Steinbrueck said Thursday (21 February) during a debate in the Bundestag.

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  • Cameron and Merkel make for a 'strange alliance', say German opposition politicians (Photo: REGIERUNGonline/Kugler)

Steinbrueck, who will challenge Merkel for the chancellery in general elections on 22 September, accused her of being a "last-minute chancellor", whose decision-delaying tactic is costing both the German taxpayer and other EU countries more than it should.

He said the €960bn deal on the EU's 2014-2020 budget was the result of a "strange alliance between Merkel and Cameron who wants to leave the EU."

"We need partners who see their future in Europe and do not rely on those who want to leave," Steinbrueck said, in reference to Cameron's announcement he wants to renegotiate the terms of Britain's membership and hold a referendum on the results in 2017.

For her part, Merkel and her allies defended the decision not to isolate Britain - whose uncompromising stance on budget cuts helped derail a first attempt for a deal back in November.

"Very few thought this deal was possible because the positions were very far away from each other. In November we didn't go for a deal without Britain and now we achieved one for all 27 members because Herman Van Rompuy led the negotiations in a very smart way and because leaders showed willingness to compromise," Merkel said.

In her view, Germany "achieved all its goals": capping the EU budget at one percent of EU's gross national income or €960bn, "a reasonable ceiling."

Merkel defended the fact that this would be the first ever austerity budget for the EU, saying it is more acceptable in the current economic climate.

"Nobody would understand when all need to tighten the belt in Europe, but not Europe itself," Merkel said.

The German chancellor urged the European Parliament to approve the deal and pointed to two concessions she made in order to meet their demands for more money.

Firstly, Germany reluctantly agreed to more "flexibility" on unspent money, which normally flows back to member states each year.

Secondly, there would be a revision clause after the EU elections next year, with the possibility to "adapt the budgetary framework, because seven years is a long time."

"Without agreement with the European Parliament, there would be no budget at all. So let's look at common things, not at what divides us," Merkel said.

Juergen Trittin, the Green leader tipped as finance minister in a coalition with the Social Democrats if they win the elections in September, pointed to Merkel's hypocrisy in demanding budget cuts and austerity measures when her government did the exact opposite when faced with the fallout of the financial crisis in 2008.

"Why do you force on Europe something you don't practice at home? In 2008, Germany made massive investments against the crisis and its debt went up from 63 to 85 percent of GDP. Don't pretend it wasn't you doing it," Trittin said.

He also said it was "irresponsible" to cut EU subsidies for solar and wind energy while keeping up payments to big agribusinesses that have lobbied the German government intensively.

"You were as cowardly as Cameron, who gives in to his own eurosceptic party and an irresponsible opposition. Instead of fighting for Europe, you gave in," he told Merkel.

Michael Roth, a Social Democrat, summed up the opposition's charges: "Cameron still enjoys his rebate, Merkel defends the agribusiness lobby, while countries are in crisis, with 5.7 million youngsters out of a job. Shame on you for this result."

MEPs attack 'carpet seller' budget deal

The EU parliament's biggest faction, the centre-right EPP, has denounced the proposed €960 billion EU budget in a clear sign MEPs may reject the deal struck by leaders.

Opinion

Secret EU budget vote is unacceptable

A secret ballot on the EU budget would be unacceptable - if you are elected by the people to a political assembly, then the people must be able to hold you accountable, write Swedish MPs Karl Sigfrid and Andreas Norlen.

MEPs vote to start democracy probe on Hungary

The European Parliament took the first step towards launching the Article 7 procedure against Hungary for backsliding on democracy. The process might lead to sanctions, but Orban is not backing down.

MEPs preparing to crack down on Orban

The EU assembly's largest group is split by its "enfant terrible", but enough MEPs are likely to abstain or vote Yes on the "Article 7" crackdown over Orban's illiberal rule.

Schulz fails to beat Merkel in German home state

Former EU parliament leader, Martin Schulz, says the defeat of his social-democrats in North Rhine-Westphalia is "difficult". The elections showed that a "Schulz effect" does not (yet) exist.

Austria heading for snap elections

Foreign minister Kurz has taken leadership of the conservative party in what could lead to an alliance with the far-right.

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