CSU calls for devolution of EU powers and new subsidiarity safeguards

Der Spiegel this morning reports that the CSU has started an "anti-Brussels election campaign" citing an internal CSU strategy paper which will form the basis of the party's campaign for the 2014 European elections entitled "Europas Zukunft: Freiheit, Sicherheit, Regionalität und Bürgernähe" (which translates as Europe's future: Freedom, Security, Localism and closeness to the citizens). The paper is certainly highly critical of many aspects of the EU but it also sets out concrete reform proposals which include:

The return of certain competencies to member states: The possibility of this was already hinted at by Angela Merkel during the recent election campaign but the CSU are going one step further by providing some additional details by specifying regional policy (as recommended by Open Europe and Open Europe Berlin) and "parts of the over-regulated single market". It is not clear what exactly would come under the latter category but it is possible that it could include areas like social and employment law which are not strictly part of the single market but which have come to be seen as ancillary to it.

A new EU "subsidiarity" or "competences" Court: Der Spiegel quotes the paper as saying that "We need a form of withdrawal therapy for Commissioners intoxicated by regulation". The antidote it would seem will be a new EU subsidiarity or competences Court - composed of national constitutional judges/legal experts - which would mediate in cases where the Commission has allegedly overstepped its limits. This option has been voiced in Germany before but it looks like the CSU will give it a serious push. If combined with new powers for national parliaments, such as binding 'red card', this could be an effective way of keeping the Commission's desire to accrue new powers in check.

The paper also strongly reiterates the party's support for referenda to be held on EU issues in Germany and for shrinking the EU Commission.

Given that Cameron has not enjoyed the best headlines in Europe recently this late Christmas present will be very welcome at Number 10.

UK-German push for EU reform gathers pace as German SMEs call for return of powers from Brussels

Today's FAZ reports on a letter to German MPs from the German Association of Family Businesses (Die Familienunternehmer) which calls for “a fundamental re-calibration of the EU Treaties”. Crucially, this would entail a correction of the distribution of competencies, which in plain English (and German) would mean the possibility of some powers flowing back to member states from Brussels. The letter argues:

“A key element for the sustainable improvement of the situation [in the EU] is the principle of liability. The future of Europe cannot be jeopardised through the progressive pooling of debts with foreseeable cuts to the German budget or the disempowerment of national parliaments in favour of centralisation in Brussels.”

Given the economic and cultural importance of family run businesses/SMEs - the organisation's website notes that there are 180,000 such businesses in Germany employing around 8 million people - this is an important development and the first time a German business group has made such a demand. While it is important not to get carried away - some of the Association's previous calls, such as pushing for MPs to vote down the ESM, fell on deaf ears - it comes at a time when the concept of adjusting the balance of powers between the EU and member states is slowly gaining traction in Germany. Not that long ago the mere suggestion would have been shot down instantly, now even Chancellor Merkel has hinted that it could be a possibility.

As our recent joint opinion poll with Open Europe Berlin demonstrated, there is substantial support among the German public for the return of certain powers.

Source: YouGov Deutschland for Open Europe and Open Europe Berlin

Of course for Germany to support such transfers they must apply to the EU as a whole, which is why British proposals to give national parliaments a greater role in the EU policy-making process could gain support in Berlin, as could proposals to streamline EU legislation. The Sunday Telegraph recently reported that the UK’s CBI is working closely with its German counterpart, the BDI, in order to push through business friendly reforms in the EU which could include the repeal of some EU social and employment laws as well further liberalisation in areas including telecommunications and services.

The momentum for EU reform is definitely growing, and in an encouraging sign of UK-German co-operation (which we advocated before it became fashionable), Conservative MP Alok Sharma and German CDU MP Ralph Brinkhaus argue in a joint piece on the Spectator’s Coffee House blog that “There’s a historic opportunity for Britain and Germany to lead the work of improving the structures of the European Union, together with other like-minded countries. There are areas of common ground for discussion on budget discipline, free trade and efficiency in the public sector to name but a few."

We couldn't agree more.