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- Jun 29, 2008
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Ken Clarke clashes with Cameron as he rubbishes calls for a referendum over new deal to save the euro
Ken Clarke has rejected calls for Britain to claw back powers from the EU as part of a deal to save the euro.
The Justice Secretary argued that now is not the right time to renegotiate the UK's relationship with Europe, since 'the financial stability of the western world' is at stake.
His remarks will put him at odds with David Cameron, who last night threatened to veto a new EU treaty as the scale of a planned Brussels power grab became clear.
The Prime Minister said he will not sign a deal that does not include unique safeguards for Britain to protect its position in the single market and the status of the City of London.
Argument: Ken Clarke, left, says that Britain should not seek to take back powers from Brussels despite the Prime Minister's demand for 'safeguards'
But Mr Clarke argued that discussions about the 'wider structures of the union' should be put on hold until the eurozone debt crisis is resolved, and said that there was no chance of a referendum on repatriating powers - a claim which will anger eurosceptic MPs.
He told the Financial Times: 'Were not going to renegotiate any transfers of powers, in my opinion.'
Mr Cameron also appears to have set his face against a referendum on Britain's future in the EU, to the fury of some Cabinet colleagues.
Although new treaty changes will apply only to the countries in the eurozone, the proposals are so dramatic Mr Cameron will come under intense pressure to ask Parliament to approve the deal, if not hold a public vote.
Emergency talks: Merkel (left) and Sarkozy renewed their calls to reform the EU Treaty if they are to stabilise the single currency
In a newspaper article today, the Prime Minister claimed that 'the British Government is simply not able to pass powers to Brussels without a referendum.'
And although he said a eurozone deal would not affect the UK directly, he insisted that the most credible way of pushing Europe forward was with treaty change involving the 27 EU members.
But just as Germany and others have their requirements for treaty change to strengthen fiscal discipline, so Britain has its requirements for treaty change too, Mr Cameron wrote in The Times.
He added: The problem with the eurozone is a problem of competitiveness, with countries that have large trade deficits coexisting with Germany which has a huge trade surplus. These imbalances have to be addressed and without this there will be no lasting solution.
We fully support the eurozones determination to reform its own rules and structures but not if they are just papering over the cracks and threatening Britains own interests in the single market.
The Prime Minister said that the three priorities for eurozone countries should be 'tighter fiscal discipline', avoiding 'a second global credit crunch', and promoting 'improved competitiveness'.
Last night, plans to create so-called slave states inside the eurozone were leaked ahead of Fridays crunch Brussels summit which will determine the survival of the single currency. A confidential paper circulated to EU leaders revealed plans for:
● Intrusive control of national budgetary policies by the EU;
● Powers for the European Commission to impose austerity measures on countries that fail to stick to a deficit limit of 3 per cent of GDP;
● Political sanctions including the suspension of EU voting rights for governments that step out of line;
● Harmonising state pension reforms, labour market policy and financial regulation across the eurozone.
EU officials are aiming to sidestep the need for votes on the deal, whether parliamentary or popular, by individual states by using an obscure clause of the Lisbon Treaty. They believe the passerelle clause gives them the power to impose the sweeping budgetary controls without seeking ratification.
But Ireland said it may hold a referendum on the deal since it would have to pass significant new powers to the EU, raising the awkward prospect for Mr Cameron that our closest neighbours might give voters a say while we do not. He has told colleagues a referendum would smash the Coalition with the pro-EU Lib Dems.
Rescue operation: It is hoped reformation would enable tougher rules and sanctions to reassure markets about the Euro's long-term stability
EU president Herman Van Rompuy is proposing major curbs on the sovereignty of the 17 euro states in setting budgetary and economic policy.
A tough regime, overseen by institutions of the EU, would have powers to intervene in countries affairs. Other steps include the right for the EU to scrutinise all major economic reform plans in advance.
Mr Cameron insisted last night that the priority for Britain had to be stabilising the eurozone. Eurozone countries including Germany and France have been put on notice of a credit downgrade that would force borrowing costs still higher and trigger an endgame for the euro.
He went on: I will not sign a treaty that does not have safeguards in it, around things like the importance of the single market and financial services.
Asked if he was saying he was ready to veto the deal he said: As long as we get those [safeguards] then that treaty can go ahead, if we cant get those, then it wont. Mr Cameron insisted Britains demands would be practical and focused but cautioned EU leaders from mistaking that pledge for a lack of steel.
Ken Clarke has rejected calls for Britain to claw back powers from the EU as part of a deal to save the euro.
The Justice Secretary argued that now is not the right time to renegotiate the UK's relationship with Europe, since 'the financial stability of the western world' is at stake.
His remarks will put him at odds with David Cameron, who last night threatened to veto a new EU treaty as the scale of a planned Brussels power grab became clear.
The Prime Minister said he will not sign a deal that does not include unique safeguards for Britain to protect its position in the single market and the status of the City of London.
Argument: Ken Clarke, left, says that Britain should not seek to take back powers from Brussels despite the Prime Minister's demand for 'safeguards'
But Mr Clarke argued that discussions about the 'wider structures of the union' should be put on hold until the eurozone debt crisis is resolved, and said that there was no chance of a referendum on repatriating powers - a claim which will anger eurosceptic MPs.
He told the Financial Times: 'Were not going to renegotiate any transfers of powers, in my opinion.'
Mr Cameron also appears to have set his face against a referendum on Britain's future in the EU, to the fury of some Cabinet colleagues.
Although new treaty changes will apply only to the countries in the eurozone, the proposals are so dramatic Mr Cameron will come under intense pressure to ask Parliament to approve the deal, if not hold a public vote.
In a newspaper article today, the Prime Minister claimed that 'the British Government is simply not able to pass powers to Brussels without a referendum.'
And although he said a eurozone deal would not affect the UK directly, he insisted that the most credible way of pushing Europe forward was with treaty change involving the 27 EU members.
But just as Germany and others have their requirements for treaty change to strengthen fiscal discipline, so Britain has its requirements for treaty change too, Mr Cameron wrote in The Times.
He added: The problem with the eurozone is a problem of competitiveness, with countries that have large trade deficits coexisting with Germany which has a huge trade surplus. These imbalances have to be addressed and without this there will be no lasting solution.
We fully support the eurozones determination to reform its own rules and structures but not if they are just papering over the cracks and threatening Britains own interests in the single market.
The Prime Minister said that the three priorities for eurozone countries should be 'tighter fiscal discipline', avoiding 'a second global credit crunch', and promoting 'improved competitiveness'.
Last night, plans to create so-called slave states inside the eurozone were leaked ahead of Fridays crunch Brussels summit which will determine the survival of the single currency. A confidential paper circulated to EU leaders revealed plans for:
● Intrusive control of national budgetary policies by the EU;
● Powers for the European Commission to impose austerity measures on countries that fail to stick to a deficit limit of 3 per cent of GDP;
● Political sanctions including the suspension of EU voting rights for governments that step out of line;
● Harmonising state pension reforms, labour market policy and financial regulation across the eurozone.
EU officials are aiming to sidestep the need for votes on the deal, whether parliamentary or popular, by individual states by using an obscure clause of the Lisbon Treaty. They believe the passerelle clause gives them the power to impose the sweeping budgetary controls without seeking ratification.
But Ireland said it may hold a referendum on the deal since it would have to pass significant new powers to the EU, raising the awkward prospect for Mr Cameron that our closest neighbours might give voters a say while we do not. He has told colleagues a referendum would smash the Coalition with the pro-EU Lib Dems.
EU president Herman Van Rompuy is proposing major curbs on the sovereignty of the 17 euro states in setting budgetary and economic policy.
A tough regime, overseen by institutions of the EU, would have powers to intervene in countries affairs. Other steps include the right for the EU to scrutinise all major economic reform plans in advance.
Mr Cameron insisted last night that the priority for Britain had to be stabilising the eurozone. Eurozone countries including Germany and France have been put on notice of a credit downgrade that would force borrowing costs still higher and trigger an endgame for the euro.
He went on: I will not sign a treaty that does not have safeguards in it, around things like the importance of the single market and financial services.
Asked if he was saying he was ready to veto the deal he said: As long as we get those [safeguards] then that treaty can go ahead, if we cant get those, then it wont. Mr Cameron insisted Britains demands would be practical and focused but cautioned EU leaders from mistaking that pledge for a lack of steel.