Advertisement
UK markets closed
  • FTSE 100

    7,893.85
    +16.80 (+0.21%)
     
  • FTSE 250

    19,390.16
    -60.51 (-0.31%)
     
  • AIM

    744.79
    -0.50 (-0.07%)
     
  • GBP/EUR

    1.1632
    -0.0051 (-0.44%)
     
  • GBP/USD

    1.2412
    -0.0026 (-0.21%)
     
  • Bitcoin GBP

    52,002.79
    +680.96 (+1.33%)
     
  • CMC Crypto 200

    1,374.89
    +62.26 (+4.98%)
     
  • S&P 500

    4,995.19
    -15.93 (-0.32%)
     
  • DOW

    37,959.32
    +183.94 (+0.49%)
     
  • CRUDE OIL

    83.00
    +0.27 (+0.33%)
     
  • GOLD FUTURES

    2,408.00
    +10.00 (+0.42%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • HANG SENG

    16,224.14
    -161.73 (-0.99%)
     
  • DAX

    17,739.21
    -98.19 (-0.55%)
     
  • CAC 40

    8,022.45
    -0.81 (-0.01%)
     

PM Needs To Build Allies In EU Reset Bid

David Cameron arrives at his first major European summit since the election with a mandate to negotiate.

In Riga, the main agenda item of the EU Partnership Summit is the troubled Eastern border not the possible break off of its major power on the West of the bloc.

Wars, security, annexation of parts of partner countries by Russia show up the seriousness of the agenda.

High up after that is the EU's southern crisis, as Greece plays chicken with the markets and eurozone officials over its bailout programme and unpayable debts.

But in the sidelines of this summit, the Prime Minister will begin part of a slow process of winning friends at the EU summit table.

ADVERTISEMENT

A historic chance to reset Britain's relationship with its European neighbours.

The meeting is a good opportunity for him to build the case with smaller countries within the 28-member state group.

This is not the time for breakthroughs or even walkthroughs of the difficult dealings ahead.

Mr Cameron said ahead of travelling to Riga: "The last time I met with European leaders I hoped to give the British people their say on the UK's membership of the European Union. Now (NYSE: DNOW - news) that referendum will definitely happen.

"Today I will start discussions in earnest with fellow leaders on reforming the EU and renegotiating the UK's relationship with it".

The PM played down rising expectations of a referendum within a year.

"These talks will not be easy. They will not be quick. There will be different views and disagreements along the way," he said.

The pace of negotiation will be determined by the big European countries.

Right now it is unclear whether Britain's renegotiation will feature on the official agenda, even of next month's full European summit.

The pace will be determined by the major powers of Europe.

It might well be in their interest to get on with a quick negotiation, to avoid the UK referendum clashing with key elections.

Importantly, German finance minister Wolfgang Schauble hinted in an interview with the Wall Street Journal at a grand bargain between the needs of a eurozone requiring closer political union, and the eurozone-outs wanting to mark out a different relationship.

Mr Schauble also showed some flexibility on the possibility of eventual treaty change, and invited George Osborne to Berlin.

There is much that could be achieved without such treaty change, if goodwill is there.

The PM has sounded far more positive about the principle of EU freedom of movement, defined as excluding the freedom to migrate to receive benefits.

His victory in the election seems to have temporarily tamed the restive rebellious streak of his party.

News such as the immigration figures showing record EU immigration into the UK might upset such uneasy equilibria.

The key thing for Mr Cameron right now is to build allies, especially with the eurozone-outs such as Sweden, Denmark and Poland.

He left behind that group of EU allies, for example when he vetoed the eurozone fiscal treaty early in his premiership.

He has a small window of opportunity to carry them.

"I believe we can find solutions that will address the concerns of the British people and improve the EU as a whole," he said before arriving in Riga.

"After all we are not alone in wanting to make the EU work better for people across Europe. And that is what I'm determined to do."

These are not the words of someone who wants or expects to see the UK exiting the EU.