On the face of it, Martin Schulz’s announcement that he is leaving his post as president of the European Parliament would appear to be good news for British policymakers hoping for a soft Brexit. This is because Schulz has been an outspoken opponent of making concessions to the British government to soften the impact of the UK’s departure.
Post-Brexit the British government would like to have the economic benefits of participation in the single Europe market while getting rid of such single market obligations as free movement of EU citizens and EU economic regulations. Doing so would give Britain what many MPs would regard as the best of both worlds. However, this soft Brexit could only be achieved if the European Union were prepared to depart from its principle that the free movement of labour and obedience to EU regulations are necessary conditions of participating in the single market.
In common with President of the European Commission Jean Claude Junker, Schulz views this as Britain wanting to have its cake and eat it too. They fear that any concession to the UK would start an avalanche of demands for exemption from EU rules by other member states. They also fear it would strengthen the hand of anti-EU parties challenging national governments to reduce their commitment to the EU and encourage them to follow the UK in opting for a soft exit.
The bad news for Britain is that Schulz is not leaving European politics but throwing his hat in the ring to be a leading member of the German government after its election next autumn. Even if Angela Merkel succeeds in maintaining her Christian Democratic Union (CDU) as the largest group in the German Bundestag, she will need to form a coalition in order to retain office as Chancellor.
The Socialist Party of Germany (SPD), of which Schulz is a member, is currently the CDU’s coalition partner. Both parties are almost certain to lose seats in the Bundestag to the anti-immigration Alternative for Deutschland, but remain large enough to form another coalition government. In that case Schulz will be in line to receive the post of German Foreign Minister, which is normally reserved for the second partner in a coalition. The post will be vacant as the current SPD incumbent, Frank Walter Steinmeier, is set to become Germany’s next president.
If Schulz becomes Germany’s new Foreign Minister, his voice will be heard in Brussels in meetings where Boris Johnson will speak for Britain. He will also be a major voice in the German Bundestag and in discussions with Angela Merkel about how the European Council should respond to requests from Theresa May for concessions. The most likely alternative to a CDU-SPD coalition is a coalition between the SPD and the parties of the left. Its current leader, Sigmar Gabriel, is just as outspoken as Schulz in opposing the British government’s desire to have an à la carte choice of EU benefits and obligations.
Schulz’s departure from the European Parliament will not change its long-standing commitment to the promotion of greater European integration. The new president is likely to be chosen by the European People’s Party, the parliamentary group from which David Cameron withdrew British Conservative MEPs on the grounds it was in favour of ever closer Union. Crucially, any agreement that the European Council struck with Britain will require ratification by the European Parliament. If Britain were to gain substantial concessions from the European Council, it would invite hard opposition in the Parliament. The refusal of the European Parliament to approve a deal would result in Britain having a “cold turkey” exit without any benefits to cushion the transition and without any obligations. Only the hardest of backers of Brexit would welcome this.
Theresa May faces a hard choice to avoid being boxed in by opposition that Schulz might mobilize in Berlin and Brussels. In terms of British domestic politics, the softer choice is to retain few of the benefits of single market membership in order to bring back to Westminster control of EU immigration and economic regulations. The harder alternative is to accept the EU’s conditions for staying in the single market and facing a challenge to her hold on Downing Street from Conservative MPs and ministers to whom Brexit means a hard Brexit.
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On 1 December 2016, the Permanent Representatives Committee (Coreper) agreed on the Council's negotiating position on the regulation on the European fund for sustainable development (EFSD) and establishing the EFSD guarantee and the EFSD guarantee fund. The text will be presented for adoption to the Council in December 2016.
''This is an important milestone in our efforts to make this fund a reality. The EFSD aims in particular at tackling the root causes of irregular migration by creating job opportunities, encouraging investments and facilitating sustainable development in partner countries. It is a vital instrument. Today's agreement respects the end-of year deadline set by the European Council. Based on this mandate, negotiations with the European Parliament should begin next year.''
Peter Javorčík, Permanent Representative of Slovakia to the EU and President of the Permanent Representatives CommitteeThe EFSD will be composed of two regional investment platforms which will support investments and increase access to financing, primarily in Africa and the European neighbourhood. It will do so by supplying financing capacity in the form of grants, guarantees and other financial instruments, including blending, with the total foreseen budget of 3.35 billion euro, with a potential to mobilise up to 44 billion euro of investments. Its management will be ensured by the European Commission in close cooperation with the European Investment Bank.
The fund will operate as a "one-stop shop" to receive financing proposals from financial institutions and public or private investors and deliver a wide range of financial support to eligible investments.
The regulation also establishes an EFSD guarantee and a guarantee fund. This will allow the EU to provide guarantees to eligible counterparts for specific financing and investment operations. The EFSD guarantee fund will constitute a liquidity cushion from which eligible counterparts would be paid in the event of a call on the EFSD guarantee. Resources for this fund will come from the general budget of the EU, voluntary contributions from member states, returns on invested resources of EFSD guarantee fund, amounts recovered from defaulting debtors and any other payments received by the EU as part of the guarantee agreements.
Today I warmly welcome Prime Minister Kvirikashvili to Brussels. And let me use this opportunity to congratulate you, Giorgi, on your re-appointment as Prime Minister. I have enjoyed working with you during the last year and I now look forward to building on our good cooperation.
The recent parliamentary elections in Georgia were competitive and respected fundamental freedoms. It was a true success for Georgia's democracy and I thank the Prime Minister for his government's dedication to ensuring such an outcome. In our meeting today I encouraged the Prime Minister to continue his close dialogue with the opposition and Georgian civil society and to govern and advance reforms in an inclusive fashion.
In today's talks we discussed the strong relations between Georgia and the European Union. I paid tribute to Georgia's ambitious reform programme under the Association Agreement and Deep and Comprehensive Free Trade Area (AA/DCFTA), for the benefit of Georgia and EU-Georgia relations. The EU will continue to assist you in this process.
I also want to thank Georgia for being a strong partner in the Eastern Partnership. I look forward to setting further common objectives for this cooperation at our next Eastern Partnership Summit in November next year.
And let me also take this opportunity to thank Georgia for its continued contributions to EU crisis management operations, assisting us in advancing EU foreign and security policy objectives.
When it comes to visa-free travel for Georgians, all Member States confirmed last October the assessment that Georgia has met all the required benchmarks. We are now working hard on the EU side, and I want to underline only on the EU side because this is now only our internal problem, to make sure that the required visa suspension mechanism, which is a horizontal mechanism for all EU's visa arrangements, will be agreed as soon as possible. Georgia deserves a timely and positive finalisation of this process.
Finally, let me express my concern about the recent ratification of the so-called agreement between Russia and the Georgian breakaway region of Abkhazia on military cooperation. For the EU it is clear that this agreement violates international law, including the principle of the inviolability of Georgia's sovereignty, territorial integrity and internationally recognised borders. It has no legal status for the European Union.
We are committed to a peaceful resolution of the conflict in Georgia, including through our co-chairmanship of the Geneva International Discussions and the EU Monitoring Mission. In short, the EU will remain firm in its support of the territorial integrity of Georgia.