Six arguments Cameron can make to help reconcile Warsaw to his proposals for reforming EU free movement

Polish Europe Minister Rafał Trzaskowski's comments on Monday's Newsnight, where he said David Cameron’s plans to stop EU migrants from claiming benefits for the first four years after they arrive in Britain would be a "red line" for Warsaw, were widely cited in the UK media, much like Polish Ambassador Witold Sobkow's response to our initial report which heavily influenced Cameron's immigration speech.

As expected all along, Poland will be the biggest single obstacle to the changes.

Some of the reluctance is understandable. Following Poland's accession into the EU after having spent too long on the wrong side of Europe's historic dividing lines, Poles understandably do not want to accept anything that smacks of 'second class' status within the EU. While many Poles may privately think the proposals are reasonable, they also expect their government to stand up for the interests of Poles abroad, and any Polish government will find this hard to sell domestically, including a Law and Justice-led one (the issue has already lead to interesting discussions within the ECR group).

So how should Cameron deal with this? Here are six arguments he can make:

1. These reforms are the best way to let free movement stand: Cameron defended the principle of free movement in his speech and he did not pledge to impose an 'emergency brake' or quotas despite substantial domestic pressure, as to his credit Trzaskowski recognised. This reform package will allow the UK to stay signed up to free movement rules - a key Polish objective.

2. The UK cannot become a contribution-based system overnight: We hear this argument a lot out of Warsaw: "If the UK is concerned that its welfare model is too open, it can re-design it to bring it into line with those on the continent - tomorrow if it so wished. It can be done unilaterally and has nothing to do with the EU."

There are several problems with this position. Re-organising the UK's entire welfare system would be an absolutely massive undertaking - politically, economically and administratively. It would basically involve re-writing the UK's entire postwar settlement. This may or may not be desirable, but it simply won't happen any time soon, especially as a result of EU pressure. For one, the UK public won't have it.

Cameron could even bat the ball back in Warsaw's court by arguing that "It would be super-easy for you to adopt more ambitious emissions reductions. You just need to replace your dependence on coal with renewable energy, and you're in line with the rest of the EU. It can be done unilaterally and has nothing to do with the EU."

3. The UK shouldn't have to choose between keeping its welfare model and staying in the EU: The logical extension of the argument above is that only a French or Germany style insurance system is compatible with EU membership. Clearly, giving the EU an effective veto over such a sensitive area is not politically sustainable - in addition to being awfully discriminatory against the UK. Changing the rules around in-work benefits on the other hand is a pragmatic way to in effect bring the UK into line with continental systems without challenging the country's entire political order.

4. Poles and other EU migrants in the UK could be worse off under such a system: Ironically, if the UK were to adopt a continental model and scrap in-work benefits and tax credits for low-wage earners entirely, it would hit EU migrants in the UK much harder than the introduction of a temporary qualification period as it would permanently reduce their income. Is this really a more desirable outcome from the perspective of the Polish government and other opponents of Cameron's proposals?

5. Workers on low wages do not contribute significantly to the welfare pot: While the vast majority of EU migrants come to the UK to work and make a positive contribution to the UK economy, as our research showed, workers on low-wages pay very little in income tax and national contributions due to the UK's generous tax free allowance (£10,000 per year and rising) and national insurance contributions threshold (£153 per week). This means that far from funding their own benefits, these workers, especially if they have dependent children, can actually be a net burden on the public purse. Furthermore, despite their misleading name, tax credits in the UK are a cash benefit funded via general public spending and are not correlated to individuals' tax payments.

6. The principle enjoys widespread public support across the EU: The basic principle of establishing a link between contributions and right to access benefits enjoys wide-spread support in other EU member states as the YouGov polling below demonstrates:


Finally, tone is also vital. Cameron made a big mistake by singling out Poles earlier this year leading to the deterioration in relations as revealed in the leaked Wprost tapes, a mistake which he avoided making again in his immigration speech last week. The rules will apply to everyone from the rest of the EU and not one particular group or country. 

Will the new migration figures force the Tories to go one step further on free movement?

Where do migrants to the UK come from the EU or non EU?

David Cameron's hopes of getting back on the front foot on migration have been dealt a blow this morning - ONS figures show that immigration is up, and specifically immigration from the EU is up as well.

These figures are important for two reasons, firstly the timing - these figures come ahead of a much anticipated speech David Cameron is about to deliver on the whole subject. Secondly, the numbers when compared to two targets, firstly the Conservatives' 2010 manifesto migration target of "tens of thousands a year not hundreds of thousands." Secondly, the comparison to migration flows under Labour. Here are some of the headline figures:

• Total net long-term migration estimated to be 260,000 in the year ending June 2014 up from 182,000 in the previous 12 months.
• Total gross immigration of 583,000 in the year ending June 2014, a statistically significant increase from 502,000 in the previous 12 months.
• EU immigration up 45,000 and non-EU up 30,000.
• 32,000 Romanians and Bulgarians came to the UK up 11,000 and EU15 migration also up 10,000.
• Estimated employment of EU nationals resident in the UK was 16% higher in July to September 2014 compared to the same quarter in 2013.

Interestingly, while immigration is also up from the new EU member states, the longer term trend driving EU migration is that from the EU15.

So how will all this play out? Well as you can see from the ONS graph below EU migration is not the largest component in total UK migration. That non-EU migration also went up for the first time in a while is politically significant.

However, EU migration is a large portion. The fact it is not showing any sign of decreasing will fuel trust issues over both the EU and migration.

Politically, perhaps the most significant aspect here is that net migration to the UK is now higher than when Labour left office (but lower than the peak during the Labour government). Ukip and some media are already jumping on this. Ahead of the speech, there’s one key question:

Has the Tory leadership already ‘priced in’ today’s figures, or has this made a cap of some sort more likely? 

EU leaders fail to agree on the remaining top jobs. Anything to remember from yesterday's summit?

Yesterday's European Council summit ended without an agreement on the remaining EU top jobs. However, something interesting still came out of the meeting.

A socialist (and a woman?) for next EU foreign policy chief

EU leaders appear to have established that the next High Representative for EU foreign policy will be a centre-left politician. German Chancellor Angela Merkel, French President François Hollande and Italian Prime Minister Matteo Renzi all said it in the respective post-summit statements.

Renzi, who is pushing for Italian Foreign Minister Federica Mogherini to get the job, also stressed that, "Everyone agrees that there's no other candidacy than Italy's." Hollande added that the High Representative "will necessarily be a woman, taking into account the image of Europe we have to offer". The French President also made clear that he backs Mogherini's candidacy.

The next European Council President will be appointed by unanimity, and could be one of the 28 sitting EU leaders

As Hollande put it during his press conference, the next European Council President "will be a personality that will have to gather consensus". Similarly, Merkel said, "We need a personality...who can hold us 28 together."

Interestingly, Renzi told Italian journalists:

"Hollande said that, according to him, the next European Council President has to be one of the 28 [sitting EU leaders]. It doesn't matter whether [he/she is] from the eurozone or not. He got broad support [for this idea]."

Speaking after the summit, Polish Prime Minister Donald Tusk confirmed that his name has been informally floated for the post of European Council President (an option we discussed here and here), but that he had not been approached officially.

Tusk reiterated that he would prefer to remain in Poland, but then added:

"We have to play out a complicated game and sometimes in this game the argument goes that all options remain on the table. Therefore, if you ask me if this is impossible, I will say that in the negotiations I prefer to keep every eventuality in reserve in order to achieve the maximum that Poland could possibly achieve."

And that was it. EU leaders will meet again on 30 August to try and wrap up a deal. We will be monitoring the meeting very closely, despite it being on a Saturday.

Will Tusk take over from van Rompuy, and what would it mean for Cameron?

Tusk and Merkel "discuss the World Cup" ahead of today's
European Council summit (h/t Maciek Sokolowski)

Yesterday, we reported that Italian Foreign Minister Federica Mogherini's bid to become the next EU High Representative for Foreign Affairs has run into trouble due to her perceived lack of robustness vis-a-vis Russia and Putin, with around ten or eleven countries - mostly from central and eastern Europe - opposing her candidacy. We argued that one way to try to square the circle would be to appoint someone from that region as European Council president to replace Herman van Rompuy, with Polish PM Donald Tusk the most credible candidate.

Today's Rzeczpospolita splashed the news that Merkel was urging Tusk to take the European Council President post and a few hours ahead of the European Council summit this scenario remains very much in play:

#EU diplos tell me latest ticket making rounds: #Poland's Tusk as @EUCouncil pres to placate East on #Mogherini at #HighRep. Tusk resisting
— Peter Spiegel (@SpiegelPeter) July 16, 2014

It is understandable why this 'dream ticket' could generate widespread support - it ticks a number of boxes; at least one top post goes to a woman, one to someone from central and eastern Europe, an experienced politician as European Council President and a relatively junior one as High Rep. It is clear why Merkel - who has good relations with Tusk - is pushing his candidacy.

So why is Tusk resisting? Well, the main reason - aside from his lack of language skills - is that he has no immediate successor as Polish Prime Minister (not least because he has culled any potential challengers) and Polish domestic politics are particularly precarious in the wake of the Wprost tapes scandal. Law and Justice are currently leading in the polls and it is not clear whether the government would be able to hang on without fresh elections in the event of a Tusk departure. Moreover, Tusk himself feels he still has unfinished business in Poland.

Nonetheless, Mutti can be very persuasive so it cannot be completely discounted, and van Rompuy's successor does not take over until November, which leaves a bit of time for a transition. Given that the role will be very important in broking David Cameron's potential renegotiation, what would it mean if Tusk got the job?

Well let's start with the positives - like the UK, Poland is a non-euro country so shares concerns about eurozone integration potentially disadvantaging non-euro members. Poland is also economically liberal and backs further expansion of the single market and the EU-US free trade deal (TTIP). Poland and the UK have also been close allies on Energy issues and with Russia having emerged as a common concern, both recently worked together to push the EU to adopt a tougher position on Russia. Finally, if Tusk were to get the job, he would be keen to stay close to Merkel, something Cameron could use to his advantage.

However, on the whole, a Tusk Presidency may not be good for Cameron; the two have a strained relationship, exacerbated in recent times by the row over EU free movement and Cameron's (ill-advised) comments about Poles claiming UK benefits (Tusk's former spokesperson Pawel Gras claimed the Polish PM had a proper f****** go at Cameron over these). Moreover, while Cameron and Tusk may agree on specific issues, Tusk is dismissive of Cameron's broader argument that the EU is need of fundamental reform and he is therefore unlikely to go out of his way to help him get significant concessions - Cameron would therefore need to ensure he has enough support among other national leaders to negate this factor.    

Are things heading towards a showdown on the new EU foreign policy chief?

UPDATE (18:20) - The FT's Peter Spiegel and Alex Barker are reporting that Belgium's Karel De Gucht, currently serving as EU Trade Commissioner, could be a late entry into the race for High Representative.

Like former Estonian Prime Minister Andrus Ansip (see below), De Gucht is a member of the liberal ALDE family - that has joined the 'grand coalition' supporting Juncker in the European Parliament and now looks to be asking for something in return.

ORIGINAL BLOG POST (17:07)

EU leaders will meet in Brussels tomorrow to get on with the assignment of the remaining top jobs. Priority will probably be given to the appointment of the EU's new foreign policy chief (aka High Representative for Foreign Affairs and Security Policy).

Italian Foreign Minister Federica Mogherini is still regarded as the frontrunner for the job. However, things may not go as smoothly as initially thought. Sources close to European Commission President-elect Jean-Claude Juncker have told Italian news agency ANSA that "ten-eleven [EU] countries" are currently against Mogherini's appointment.

The sources didn't name any names, but it is understood that Eastern EU member states are particularly reluctant, since they believe Italy did not take a hard enough stance against Russia during the Ukraine crisis.

The Lisbon Treaty establishes that, similarly to the European Commission President, the High Representative is appointed by EU leaders under qualified majority. And Italian Europe Minister Sandro Gozi has made clear Italy is prepared to go to a vote. He said:

"[The appointment of] Juncker is part of an agreement whereby the High Representative goes to the socialists." 

"Juncker has been designated by [qualified] majority. No-one ever raised objections [against Mogherini] with us. If there were any, that would mean the High Representative will also be designated by majority."

Therefore, things may be heading towards another showdown. This time, though, the outcome of the vote could be a lot more uncertain. A group of ten or eleven countries (very likely to include Poland, a qualified majority heavyweight) would have good chances of success in forming a 'blocking minority' to reject Mogherini's appointment. That would be a blow for Italian Prime Minister Matteo Renzi, who seems to be investing a good deal of political capital trying to secure a post that he considers as of great prestige. But it could also shift the balance in the distribution of the other top jobs - notably the Presidency of the European Council.

Mogherini is from a centre-left party. This means her appointment would make it less likely for Danish Prime Minister Helle Thorning-Schmidt, another centre-left politician, to succeed to Herman Van Rompuy as European Council President. However, this argument could no longer be valid if the new High Representative were to come from a centre-right party.

This would be the case with Bulgaria's Kristalina Georgieva, who looks to be gaining momentum as an alternative to Mogherini, although, as our dove-hawk axis showed, Bulgaria has so far also been quite soft on Russia.

Another option could be to offer the post of European Council President to someone from an Eastern European country in order to assuage opposition to Mogherini. Polish Prime Minister Donald Tusk could be an option, although with Polish domestic politics in a precarious state he may prefer to stay put. In that case, former Estonian Prime Minister Andrus Ansip - who has already been nominated as Estonia's next EU Commissioner - could be one to watch. Ansip's Estonian Reform Party belongs to the liberal ALDE group, that has joined the 'grand coalition' supporting Juncker in the European Parliament and would presumably be keen to get something substantial in return.  

In other words, a few surprises may come out of tomorrow's European Council. Stay tuned.

Why Cameron needs to make a swift decision on the UK's next EU Commissioner

In a recent briefing, we stressed that David Cameron needs to pick a 'heavy-hitter' as UK's next European Commissioner if he wants to secure a key portfolio for the UK. Our point is reinforced by a quick look at the candidates being (more or less officially) lined up by other EU member states.

If the UK drags its feet on 'declaring' its candidate, and then sends someone not considered up for the job, we suspect its chances will pretty much have evaporated.

FRANCE - Former Finance Minister Pierre Moscovici is regarded as the frontrunner. The possible alternative could be Élisabeth Guigou, who has served as French Europe Minister, Justice Minister and Employment Minister.

GERMANY - Günther Oettinger looks very likely to stay on as German Commissioner. A former Minister-President of Baden-Württemberg, he has gained influence within Angela Merkel's CDU party during his five years as EU Energy Commissioner.
 
ITALY - Foreign Minister Federica Mogherini is widely tipped to become the new Italian Commissioner. She is currently regarded as the frontrunner to replace Lady Ashton as EU foreign policy chief. 

FINLAND - Former Prime Minister Jyrki Katainen will be the new Finnish Commissioner. He has already replaced Olli Rehn, who had to take up his seat in the European Parliament. Importantly, Katainen stepped down as Finnish Prime Minister precisely because he had set his eyes on a job in Brussels.

SPAIN - Former Agriculture Minister Miguel Arias Cañete is the favourite to become the new Spanish Commissioner. He resigned in April after being picked by Spanish Prime Minister Mariano Rajoy as Partido Popular's top candidate in the European Parliament elections.

POLAND - Various names have been suggested. Foreign Minister Radosław Sikorski remains the frontrunner (despite the recent wiretapping scandal). Former Finance Minister Jacek Rostowski and former EU Budget Commissioner Janusz Lewandowski - recently elected as an MEP - are also in the race.

NETHERLANDS - The frontrunner is Finance Minister and Eurogroup Chairman Jeroen Dijsselbloem, who is one of the two big contenders for the key post of Economic and Monetary Affairs Commissioner along with France's Pierre Moscovici.

ESTONIA - Former Prime Minister Andrus Ansip, leader of the liberal Estonian Reform Party, will be the new Estonian Commissioner, according to what Jean-Claude Juncker just said during his hearing with MEPs from the ALDE group.

What is somewhat different with this lot is that it includes a range of acting or former senior ministers still very much operating on the political centre stage in their respective countries. With some exceptions, the time when countries sent to Brussels whoever the sitting government tried to 'get rid of' seems pretty much over.

Cameron better get a move on.

Post-Juncker press conference round-up

We have been following the post-summit press conferences of EU leaders. Here is a round-up of the highlights, starting with German Chancellor Angela Merkel:

MOST IMPORTANT POINTS FROM #MERKEL #EUCO PRESSER: (1/3) "Ever closer union" does not mean one-speed Europe.
— Open Europe (@OpenEurope) June 27, 2014

MOST IMPORTANT POINTS FROM #MERKEL #EUCO PRESSER: (2/3) #spitzenkandidaten process will have to be discussed in #Council.
— Open Europe (@OpenEurope) June 27, 2014

MOST IMPORTANT POINTS FROM #MERKEL #EUCO PRESSER: (3/3) "flexibility" on fiscal pact does not mean member states get to re-write the rules.
— Open Europe (@OpenEurope) June 27, 2014

In his press conference, David Cameron took his defeat on the chin but noted that it would make his reform strategy harder:

“Today’s outcome is not the one I wanted. And it makes it harder, and the stakes higher…This is going to be a long, tough fight and sometimes you have to be ready to lose a battle to win a war. It has only stiffened my resolve to fight for reform in the EU, because it is crying out for it.”

Cameron was asked whether much more of this kind of thing would prompt him to recommend an ‘Out’ vote in a referendum. He declined the offer but did make the point that:

“And at the end of 2017, it will not be me, it will not be the House of Commons, it won’t be Brussels who decide about Britain’s future in the European Union. It will be the British people. It will be their choice, and their choice alone.”

He also pointed to the paragraph in the Council conclusions dedicated to the UK:

1. The UK raised some concerns related to the future development of the EU. These concerns will need to be addressed.  

In this context, the European Council noted that the concept of ever closer union allows for different paths of integration for different countries, allowing those that want to deepen integration to move ahead, while respecting the wish of those who do not want to deepen any further.  

Once the new European Commission is effectively in place, the European Council will consider the process for the appointment of the President of the European Commission for the future, respecting the European Treaties.

Italian Prime Minister Matteo Renzi was particularly keen to claim victory on a more 'flexible' application of EU fiscal rules. Van Rompuy’s agenda for the next European Commission is “very very very good on substance. For the first time, the focus is on growth. Insisting on growth is a turning point for Europe,” he said.

“Those countries who implement structural reforms have the right to greater flexibility, which is the most important political point for us.”

Renzi also touched on other EU top jobs, and made clear that:

“The name of [former Italian Prime Minister] Enrico Letta for European Council Presidency has never been made”

As for French President François Hollande, he tried to wrap his battle for looser EU fiscal rules into a European flag:

“I did not intervene only to defend France. When I evoke the flexibility in the margins of the Stability Pact [EU fiscal rules], I defend a conception of Europe.” 

And as regards the next European Commission, he said France wants “an organisation around big Vice-Presidencies. I will demand a Vice-Presidency for France.”

Read our take on what Cameron's defeat means for the reform agenda here.

Can journalists please stop referring to Sikorski as "Cameron's ally"?

The leaked conversation in which senior Polish politicians including Foreign Minister Radoslaw Sikorski savage Cameron's EU strategy - exclusively translated into English by Open Europe yesterday - is all over the UK press today.

Many of the stories have headlines refer to Sikorski as a key "ally" for David Cameron, but as we have repeatedly argued, this has long not been the case; in January, we pointed out in the wake of the row over free movement and EU migrants' access to benefits that "It isn't Brussels that David Cameron should worry about in Europe at the moment – but Warsaw".

Despite being a university friend of David Cameron and Boris Johnson's [insert obligatory Bullingdon club reference here], as well as an Anglophile and self confessed Thatcher fan, Sikorski has never been an ally on EU reform. Poland has its own interests in the EU to look after - and in recent years it become more assertive and effective in doing so - it is under no obligation to support the UK (this is after all what playing the EU game is all about). Poland considers its membership of the EU as its best guarantee of security - especially following recent events in Ukraine - and therefore sees any attempts to 'weaken' it as inimical to its interest. However, Sikorski has not only not supported the UK, he has gone out of his way to undermine Cameron's reform agenda, for example by painting it in 2012 as an attempt to "wreck and paralyse the EU".

It is true that more recently his tone and rhetoric has been more constructive - in April he said that Poland would be "perfectly willing to help [the UK] fix some of the problems of the EU”, but even his only specific suggestion was fixing the Working Time Directive. The WTD is certainly a significant issue which needs to be addressed but its hardly the most pressing problem facing the UK within the EU and it misses the point that there is a much wider critique to be made of how the EU currently operates. Indeed Sikorski's wider rhetoric - “Britain is a great victor of the EU" is implicitly dismissive of these concerns and only serves to sustain the perception that of an out of touch, arrogant EU elite.

Despite their differences over the key issue of free movement, Poland and the UK continue to share strategic interests in a number of areas from free trade, better EU regulation, energy policy, rights for non-euro members (it'll be a long time before Poland can join) and Russia/Ukraine. International diplomacy remains above all else a pragmatic business.

However, just because Cameron and Sikorski used to be Oxford drinking buddies, it does not mean they are natural allies on EU reform.

EXCLUSIVE TRANSLATION: "Cameron f***** it up" - Leaked tapes shed light on difficult relationship between London and Warsaw

As far as leaked tapes are concerned, this is extraordinary - and Open Europe offers the first translation of it all.

Poland has been rocked by a political scandal involving the covert surveillance of senior government ministers, state officials - including the governor of Poland's Central Bank Marek Belka - and business figures, and recordings of their conversations were leaked to Polish magazine Wprost. 

The whole business is distinctly shady - who did the recording and for what purpose (some have suggested Russian involvement) - and could yet lead to early elections. It has also revealed how Polish politics operates behind closed doors and shed light on what senior figures really think about a range of issues, including UK-Polish relations in the context of the EU.

We have highlighted before that this is a crucial bilateral relationship, the health of which will have a significant impact on the success or otherwise of Cameron's EU reform agenda. Unfortunately, this relationship has become particularly strained in recent times, particularly over the related questions of free movement and access to benefits. Here are the key sections of a conversation between Foreign Minister Radoslaw Sikorski and former Finance Minister Jacek Rostowski at some point this spring (we try to keep this blog family-friendly so apologies for the bad language).

Rostowski: “[Cameron] thinks he’ll go renegotiate and come back, no Polish government could agree to it. Except in return for a mountain of gold.”

Sikorski: “Its either a very badly thought through move, or, not for the first time a kind of incompetence in European affairs. Remember? He f***** up the fiscal pact. He f***** it up. Simple as that. He is not interested, he does not get it, he believes in the stupid propaganda, he stupidly tries to play the system... his whole strategy of feeding [his critics] scraps in order to satisfy them is just as I predicted, turning against him; he should have said, f*** off, tried to convince people and isolate [the sceptics]. But he ceded the field to those that are now embarrassing him.”

Rostowski: “For the Polish government to agree, someone will have to give us some mountain of gold. The Brits won’t give it to us, and the Germans, in order to keep the Brits on board, won’t give it to us either in all likelihood. So the answer will be: f*** off... [the impact of a Brexit] will generally be bad for us, because we would like for Great Britain to stay. I think it’ll be the case that [Cameron] will lose the elections. Great Britain will leave. Once they do, they’ll keep open borders. Not for [gypsy] beggars…"

Sikorski: “Just like Norway... Enough of this!” They've f***** up Eastern Europe and a few other things. [Mimics a Brit] If Europe doesn't reform, it’ll end badly! Let them worry about their economy. If they don’t re-organise themselves, they’ll have as bad an economy as Germany. What is that? What, how is that so monstrous?”

In a separate conversation with Jacek Krawiec, head of Poland's largest oil and gas conglomerate Orlen, Pawel Gras, Prime Minister Donald Tusk's then media spokesperson referred to a phone conversation between Tusk and Cameron in the wake of Cameron's comments about Polish migrants claiming benefits in the UK.

Krawiec: “What the f*** are they on about with these benefits? [Cameron] seems like a really sensible bloke... when I met him in London he talked a lot of sense”.

Gras: “Thoughtless, probably suggested by [some spin doctor] probably came from some focus group, he didn't think through the consequences, the whole thing was stupid, Donald called him at once to discuss it, he had such a go at him, I mean f*** it’s a shame we didn't record it, he had a such a proper f****** go at him.”

So what does this tell us (other than politicians use words in private they'd never use publicly)? Well leaving aside the criticism of Cameron's EU policy - which has been made before - here are a few points we've picked up on:

• It is notable that Rosowski assesses the prospects of Brexit as highly likely, and how resigned both he and Sikorski are to that outcome even while admitting that it would be bad for Poland. 
• As such, it is outright bizarre that they are so flippant and dismissive about Cameron's reform agenda - which - for all its flaws from a Polish perspective - remains the best chance for keeping the UK in the EU from a wider perspective.
• Both Rostowski and Sikorski are adamant that even in the event of a Brexit, the UK will not be able to block free movement - if it wants to maintain access to the single market - a key demand of many better off outers (Switzerland is currently facing this dilemma). 
• As the Krawiec comments demonstrate, when addressing issues of substance, Cameron can count on a good hearing from Polish business leaders, a crucial constituency, but he risks alienating Poles by ill-judged claims about 'benefit tourism'.

In conclusion, international diplomacy remains rooted in pragmatism and it is unlikely this incident will result in long term damage between London and Warsaw. It is also worth mentioning that these conversations could well have taken place before the escalation in the Ukrainian crisis which has helped to firm up Polish-British relations (with the UK taking a tougher position on sanctions than other EU member states and sending RAF fighter planes to the region). 

However, it is clear that issues like EU migrants' access to benefits - something UK public opinion will simply not allow Cameron - or indeed any other UK Prime Minister - to ignore. It is crucial therefore that both governments put aside the hyperbole and think about how tricky issues can be resolved in such a way that benefits both countries. 

Meet the man who wants to blow up the European parliament

In our recent briefing ahead of the European elections, we estimated that anti-EU, protest and anti-establishment parties of various forms are set to increase their share of the vote and their number of seats in the European parliament.

One such party building up some impressive momentum as polling day approaches is the Polish Congress of the New Right, led by the mega-eccentric, bow-tie aficionado 71-year old Janusz Korwin-Mikke. A few weeks ago the party was polling at 2/3% but in recent polls the party has consistently been at or above the 5% minimum threshold, a result which would give it 3 MEPs.

The party is an odd mix of extreme libertarians and nationalists and Korwin-Mikke himself has been around Polish politics since the fall of Communism without much success. Unlike most parties in Poland, the New Right is strongly anti-EU with Korwin-Mikke describing the Commission as "bastards and Communists", and saying that:

"We are going to the European Parliament to show what a nonsensical institution it is. It's not possible to achieve anything sensible there".

In a speech a couple of weeks ago Korwin-Mikke said that the party would go into the parliament in order to detonate a bomb inside it, while one of his MEP candidates claimed that "the European Parliament is a brothel, a role for which it is ideally suited". On the surface, the party bears many similarities to UKIP and the party may want to join UKIP's EFD group in the EP. However, such an alliance is unlikely given that Korwin-Mikke's views make former UKIP MEP Godfrey Bloom appear like Polly Toynbee. For example, his long-standing view is that women should not have the right to vote as they do not "understand politics" and tend to vote for pro-welfare parties.

However, even the party does make it into the European parliament - Polish polls have proved notoriously unreliable in the past - it will not have any wider implications for Poland's membership of the EU where support is among the highest in the whole EU. It could make plenary sessions in Brussels and Strasbourg more interesting though....

#EU reform: The status quo is not an option

Our ground-breaking EU reform conference is now imminent and, as widely trailed in today's media, UK Chancellor George Osborne will be giving the opening keynote speech.

You can join the conversation throughout the day on twitter, using the #EUreform hash tag, or follow @openeurope. Uniquely for this type of a conference, all sessions will be on the record. We call it "Open Europe rules" (as opposed to the more secretive Chatham House rules).

In a letter to today's Guardian, six leading MPs from across Europe, all attending the conference, argue:

Too often, the debate about "Europe" is based on emotional and ideological arguments, with all sides – from those who want more EU integration and those who want less – trading in hyperbole rather than engaging with substantive issues of policy. Of course we need to co-operate across borders in Europe. The question, as ever, is how. How do we square the need for cross-border action with democratic accountability? How do we live up to the promise to make decisions as close as possible to citizens? How do we make Europe really work for growth and jobs at a time when global competition is stiffening?  

Today, we are joining hundreds of parliamentarians and opinion-formers from across Europe at a unique conference in London organised by the thinktank Open Europe and the Fresh Start Project, dedicated to one question: how can we achieve EU reform? While our proposed solutions may differ, we agree on one thing: the status quo in Europe is not an option. If the EU is to thrive, it needs to embrace a series of bold reforms. Some of these will involve EU action, but where democratic and economic factors so dictate, this may also mean "less Europe". We want to replace the emotional point-scoring with a policy-based discussion about how to achieve a Europe that works better for both democracy and growth.

Gustav Blix Swedish MP (Moderate party); ranking member, committee on European Union affairs (Sweden)
Klaus Peter Willsch German MP (CDU); member, committee for economy and energy,
Germany; Deputy head of the committee on education, research and technology (Germany)
Angieszka Pomaska Polish MP (Civic Platform); Chair of the EU affairs committee in the Polish parliament (Poland)
Eva Kjer Hansen Chair of the European affairs committee (Liberal party), Danish parliament (Denmark) Andrea Leadsom MP for South Northamptonshire (Con); co-founder, Fresh Start Project; member of No 10 policy board (UK)
Dr Reinhold Lopatka Spokesperson for foreign and European affairs, Austrian People's party (OeVP); former secretary of state for European and international affairs (Austria)

False row alert: Changes to EU benefits rules don’t necessarily need treaty change

Cameron and Tusk do not see
eye-to-eye on EU free movement

The UK-Poland row over immigration continues. Now Polish PM Donald Tusk has waded in by saying that Poland would veto any EU treaty change aimed at striking down on access to benefits – including child benefit for children living in other EU countries. This is in response to David Cameron's remarks on Sunday that:

"I think it's wrong that someone from Poland who comes here and works hard - and I'm absolutely all in favour of that - but I don't think we should be paying child benefit to their family back at home." 

Somewhat confusingly, Cameron said one way of changing the rules was "the treaty change that I'll be putting in place before the referendum that we'll hold on Britain's membership of the EU by the end of 2017".

Tusk hit back, telling reporters in Warsaw that:

"If anyone, whether it is premier Cameron or anyone else, will want to change the European treaty to make this possible, Poland will veto it, today, tomorrow and forever," 

The two men will have what we assume will be a somewhat tense phone conversation later today.

You know what we think of this row. However, whether we agree or disagree with the changes Cameron proposes - and it's hard to see how the current EU rules around child benefits can stand - most of the changes around access to benefits could be sorted through altering EU directives and regulations. Those who favour the status quo point to the EU treaties’ passages on non-discrimination as a barrier to change.

However, the EU’s Rights of Residence (aka Free Movement) Directive already qualifies the right to access certain benefits on the basis of time resident in a country, so it would be a matter of agreeing to extend this already established principle. The rules on child benefit are governed by the EU’s Social Security Regulation. The Directive and Regulation are both decided though qualified majority, meaning that no single EU country has a veto, meaning Poland would need to muster a blocking minority to see off the changes. No need to touch the EU treaties (unlike an outright cap on immigration, for example). Ultimately, the devil would be in the detail.

But, again, a pragmatic compromise is fully possible. The Open Europe/Fresh Start reform conference next week will bring together some of the key players in this debate - including the head of the EU Affairs committee in Polish Parliament, Agnieszka Pomaska and the Bulgarian foreign minister, Kristian Vigenan - to try to replace the current emotional shouting match with a substance-based discussion.

Tories' Polish allies label Cameron's migration comments as "unacceptable"

Much has been said and written about EU free movement, indeed the rhetoric has escalated in the weeks before the lifting of transitional controls on citizens from Bulgaria and Romania. The question of on what terms EU migrants should be able to access the UK's welfare system - a crucial and sensitive issue - has been rolled into a wider debate about the costs and benefits of immigration per se.

While the tough message adopted by the government is designed to reassure a concerned public that EU migrants will not be a drain on the public purse, this has also generated a lot of concern among EU partners. While protests from the likes of Viviane Reding and Laszlo Andor will not cause anyone in Whitehall or Westminster to loose any sleep - in fact quite the opposite - the reaction from broadly sympathetic EU partners like Germany and the Netherlands ought to. 

Today, even Poland's largest opposition party Law and Justice (allied with the Conservatives in the European Parliament) stuck the boot in, letting it be known that leader Jaroslaw Kaczynski had personally written to Cameron to complain after the Prime Minister described Labour's decision not to apply transition controls to the A8 countries in 2004 as a "mistake" and a "shameful dereliction of duty". 

In an interview with Polish Radio today, Law and Justice MP Marcin Mastalerek described Cameron's comments as "unacceptable", adding that:

"If Cameron does not revise his view on this subject it will make working together in the European Parliament exceptionally difficult". 

Wprost cites Law and Justice MEP Ryszard Czarnecki as saying that:

"This is a completely mistaken diagnosis of the situation. The British economy has earned billions of pounds thanks to the work of Polish migrants over the past 9 years... I think the letter from [former] Premier Kaczynski will provide Prime Minister Cameron with some valuable material."

He added that he hopes the Polish government would also protest against Cameron's words which "are hurtful to the hundreds of thousands of Polish citizens who are working to advance the welfare of the UK".

Of course Law and Justice cannot afford to be seen giving Cameron a free pass on rhetoric that is seen as being hostile towards Polish citizens, so the tough tone is partially for domestic consumption. It remains to be seen whether the two parties really will struggle to work together within the ECR group.

Former Polish President Lech Walesa also joined the fray, accusing the UK of not appreciating how much they've benefited from the fall of Communism and of behaving "irrationally and short-sightedly".

The wider risk - as we've pointed out in our recent briefing analysing the results of our simulated UK-EU negotiations - is that Cameron's tendency to jump from headline to headline when it comes to EU issues risks alienating potential allies in his bid for reform.