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Germany backs UK over calls for eurozone protection Germany backs UK over calls for 'fairness' in EU reforms
(about 7 hours later)
The EU must ensure non-eurozone countries, such as the UK, are legally protected in the event of further European integration, the finance minister of Germany has said. David Cameron's hopes of renegotiating the UK's place in the European Union have been boosted after Germany said any future changes must be fair to nations not using the single currency.
Chancellor George Osborne and his German counterpart said any changes to EU treaties must "guarantee fairness". Its finance minister Wolfgang Schauble said countries outside the eurozone should not be put at a "systematic disadvantage" by future integration.
Writing in the Financial Times, the pair say non-eurozone nations must not be put at a "systematic disadvantage". Writing in the Financial Times, he said legal protections must be put in place.
It comes a month after Germany's leader Angela Merkel visited the UK. No 10 said it amounted to the German government publicly backing its case.
During the visit she and Prime Minister David Cameron discussed possible changes to the EU.
'Optimism'
Mr Cameron has said that if the Conservatives win the 2015 election, he will seek to renegotiate the terms of the UK's membership of the European Union and put the outcome to an in-out referendum of the British people in 2017.Mr Cameron has said that if the Conservatives win the 2015 election, he will seek to renegotiate the terms of the UK's membership of the European Union and put the outcome to an in-out referendum of the British people in 2017.
One of Mr Cameron's key negotiating demands ahead of the referendum is that the interests of non-eurozone states must be protected. The prime minister says moves towards deeper economic and political integration within the eurozone are a trigger for the UK to secure a "better deal" in Europe and redraft the terms of its membership.
In the joint article, Mr Osborne and the German finance minister Wolfgang Schauble wrote that "as the euro area continues to integrate, it is important that countries outside the euro area are not at a systematic disadvantage in the EU". He has suggested that existing EU treaties will need to be rewritten - although France has signalled that it does not believe this is a priority at the moment.
It is the first time Germany has indicated that countries such as the UK must not be put at a disadvantage by eurozone nations' moves to integrate more closely. The UK has long maintained that safeguarding national interests, such as fair access to the European single market and protecting the City of London, will be vital in any future process.
Writing together, the pair said: "So future EU reform and treaty change must include reform of the governance framework to put euro area integration on a sound legal basis, and guarantee fairness for those EU countries inside the single market but outside the single currency." In the joint FT article, Chancellor George Osborne and his German counterpart said any changes to EU treaties must "guarantee fairness" to all member states.
They said economic recovery in Europe was "vital", but warned that the European economy had "stalled" over the last six years. "As the euro area continues to integrate, it is important that countries outside the euro area are not at a systematic disadvantage in the EU," he said.
The pair wrote that they "approach European reform with optimism", adding that "looking ahead we can create a flexible and outward-looking EU". The pair added: "So future EU reform and treaty change must include reform of the governance framework to put euro area integration on a sound legal basis, and guarantee fairness for those EU countries inside the single market but outside the single currency."
Mrs Merkel, who met the Queen during her visit to UK, said after meeting Mr Cameron that she was willing to work with the UK to reform the European Union but warned it would not be "a piece of cake". It is the first time Germany has publicly indicated that countries such as the UK must not be put at a disadvantage by eurozone nations' moves to integrate more closely.
And during an address to Parliament she praised the "unparalleled success" of the EU free market but stressed that "we need to change the political shape of the EU in keeping with the times". Downing Street said Mr Schauble's comments amounted to the German government stating publicly for the first time that safeguards for non-eurozone states should not simply be negotiated on a case-by-case basis as the single currency area takes further steps towards integration, but should be underpinned formally in the EU treaties.
She told the UK's gathered political leaders the EU had to become stronger, saying: "In order to attain this goal we need a strong United Kingdom with a strong voice inside the European Union. A No 10 spokesman said it was vital that there was a "level-playing field" between countries inside and outside the euro.
"If we have that, we will be able to make the necessary changes for the benefit of all." "What we see is Germany, one of the leading players in the eurozone, accepting that there needs to be these proper safeguards put in place as further changes are made for the eurozone."
"This is a German finance minister coming out and saying there will be treaty change and it must include reform of the framework to ensure the right safeguards between euro-ins and euro-outs."
The BBC's Ben Wright said the prime minister and Conservative backbenchers would be delighted that the Germans were "clearly receptive" to their concerns.
The timing of the comments would also be welcome in No 10, he added, coming as the debates between Nick Clegg and Nigel Farage have put the issue of what can be achieved in Europe top of the political agenda.
However, this would not be enough on its own to satisfy conservative MPs who been promised a return of powers from Brussels to London
Mr Cameron has been seeking to gets Germany's backing for its reform agenda in Europe but on a visit to the UK earlier this month, Chancellor Angela Merkel but warned it would not be "a piece of cake".
During an address to Parliament she urged the UK to remain a "strong voice" inside the EU, adding that "if we have that, we will be able to make the necessary changes for the benefit of all".
Reacting to the article, Conservative MP Douglas Carswell struck a cautious tone about what was being promised. "Hurray! British and German governments promising us EU reform and "subsidiarity" in the FT. Just like the 1990s all over again," he tweeted.