France and Germany in secret 'No thanks' pact against Britain: Cameron humiliated as Hollande and Merkel tighten their grip and rule out EU treaty change

  • Angela Merkel and Francois Hollande agree deal to tighten political union
  • Franco-German pact shores up Eurozone without EU treaty change
  • PM has vowed to use treaty change to enact string of key demands
  • Came as PM held talks with EU chief Jean-Claude Juncker at Chequers

By Tom McTague, Deputy Political Editor for MailOnline

Published: | Updated:

David Cameron's hopes of securing changes to the EU's treaties within the next two years were left in tatters this morning after France and Germany stitched up a secret deal bypassing the UK to tighten their grip on Europe.

The Prime Minister held talks with the European Commission president Jean-Claude Juncker at Chequers last night – pushing his plan to overhaul Britain's relationship with Brussels before holding an in/our referendum in 2017.

But he was left humiliated after a pact between French President Francois Hollande and German Chancellor Angela Merkel was leaked ruling out the need for EU treaty change – a key plank of Mr Cameron's planned renegotiation.

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'Fight them on the beaches': In a pointed intervention, he told Mr Juncker that they were meeting in the room reputedly used by Winston Churchill to write some of his most famous wartime speeches

'Fight them on the beaches': In a pointed intervention, he told Mr Juncker that they were meeting in the room reputedly used by Winston Churchill to write some of his most famous wartime speeches

French President Francois Hollande and German Chancellor Angela Merkel - pictured in Berlin last week - have agreed a deal ruling out the need for EU treaty change – a key plank of Mr Cameron's planned EU renegotiation

French President Francois Hollande and German Chancellor Angela Merkel - pictured in Berlin last week - have agreed a deal ruling out the need for EU treaty change – a key plank of Mr Cameron's planned EU renegotiation

CAMERON'S KEY DEMANDS FOR EU REFORM BEFORE REFERENDUM

FOR WORKERS FROM THE EU:

No in-work benefits until they have been in Britain for four years

No social housing for four years

No child benefit or tax credits paid for children living outside the UK

FOR UNEMPLOYED EU MIGRANTS:

No support from the UK taxpayer

Deportation if they do not get a job for six months

Other measures include:

Impose restrictions on EU migrants bringing in family members from outside the EU

Longer bans on rough sleepers, beggars and fraudsters returning to the UK

Tougher rules on deporting foriegn criminals

Refusing to allow other countries to join the EU without imposing controls on the movement of their workers until their economies have reached UK levels

The Franco-German agreement aims to shore up the crisis-stricken euro by tightening political union between the countries in the single currency. But, crucially, the two countries have agreed that the measures can be enacted without the need for treaty change.

The secret plan, which was finalised on the fringes of last week's EU summit in Estonia, was leaked to French and German newspapers last night as Mr Cameron sat down for dinner with Mr Juncker.

In France the new accord was dubbed 'Le No Thanks' to Mr Cameron.

In Germany the newspaper Die Welt said the agreement was 'Berlin and Paris showing Cameron the Red Card'.

It is a huge blow to Mr Cameron, who hoped to use EU treaty change to force through his own key demands – including banning migrants from claiming benefits in the UK for four years and withdrawing Britain from the EU's founding principle of 'ever-closer union'.

The French and German proposals are to be put to an EU summit in Brussels next month, where Mr Cameron is also to unveil his shopping list of changes needed if he is to win support for keeping Britain in the EU.

Former Conservative Chairman Bernard Jenkin told BBC Radio 4's Today programme Britain could not renegotiate with the EU without fundamental treaty change.

He said: 'The Prime Minister has made it clear he wants a fundamental change in our relationship with the EU, that he wants a relationship based on trade and cooperation, not continued centralisation, and that is why I am mystified by all these reports that somehow these can all be finessed without fundamentally changing the treaties.

'Either the treaties as a whole fundamentally change, or we have to fundamentally change our relationship with it, which is what the Prime Minister has suggested.'

The Franco-German proposal overshadowed Mr Cameron's unprecedented diplomatic push to win round EU leaders to Britain's demands.

The Prime Minister invited Mr Juncker to his country retreat to mend relations between the two men.

The pair have endured a difficult relationship since Mr Cameron tried to block the former Luxembourg prime minister from getting the job of European Commission president. 

Tension: Mr Cameron could face an uphill battle in winning sympathy from Mr Juncker after he voted against him for the top commission job

Mr Cameron held talks with the European Commission president at the Prime Minister's country retreat, Chequers (pictured) in Buckinghamshire

Mr Cameron held talks with the European Commission president at the Prime Minister's country retreat, Chequers (pictured) in Buckinghamshire

WHAT IS HAPPENING WITH THE EUROPEAN UNION REFERENDUM?

Why are we having a referendum?

The Prime Minister announced in 2013 that he would ask the public to decide whether the UK should remain a part of the European Union if he led the Conservatives to victory in May's general election.

When will it happen?

Mr Cameron has promised to put the question to the electorate by the end of 2017, but it could happen as early as 2016. That would be 41 years since the last such vote, when 67% said they wanted to remain 'in'.

Why wait at all?

Rather than base the choice on the existing relationship with Brussels, Mr Cameron is seeking to secure a new deal. Negotiations with the other 27 member states are bound to be fraught and complex and are only now beginning in earnest. A year is considered the minimum period he will need to pull together what he hopes will be sufficient reforms to persuade the public not to sever formal ties with the bloc.

What will the question be?

The Conservatives' preferred wording has been: 'Do you think that the United Kingdom should be a member of the European Union?' The watchdog which oversees referendums, the Electoral Commission, raised concerns that some people might think the country was not already a member, and proposed instead: 'Should the United Kingdom remain a member of the European Union?'. 

Will a referendum happen automatically?

No. An Act of Parliament is required for any such national vote to happen. It is due to be published on Thursday after being announced in the Queen's Speech. Now that Labour has reversed its opposition to a referendum - it should be easily passed by MPs. But it will face a much stiffer test in the House of Lords where the lack of a Tory majority will allow challenges over key aspects including the question, the timing and who can vote. 

Mr Cameron's welcome to his guest even included a reminder that Britain had saved Europe from the Nazis.

In a pointed intervention, he told Mr Juncker that they were meeting in the room reputedly used by Winston Churchill to write some of his most famous wartime speeches. 'Think of 'we'll fight them on the beaches',' he told him.

The Prime Minister also could not resist teasing the Eurocrat, who has faced rumours about his fondness for cognac, by offering to show him Churchill's brandy glass.

The Prime Minister will visit Paris and Berlin this week as part of a European charm offensive before the summit.

He will fly to Denmark on Thursday for a working breakfast with his counterpart Helle Thorning-Schmidt, going on to the Netherlands to meet Dutch prime minister Mark Rutte before ending the day with talks over dinner at the Elysee Palace with Mr Hollande.

On Friday, the Prime Minister will travel to Poland for discussions with prime minister Ewa Kopacz in Warsaw before concluding the trip in Berlin, where he will hold talks with Mrs Merkel.

His dinner with Mr Juncker was not expected to produce any conclusive solutions for Britain, a source said, but it would give the Prime Minister a chance to air concerns over continued membership of the EU.

The source added: 'It is an opportunity for the PM to underline why he is doing this and the views of Britain about the EU, the case for renegotiation and not sticking with the status quo.'

Mr Cameron could face an uphill battle in winning sympathy from Mr Juncker after he voted against him for the top commission job.

At the time, he described Mr Juncker's appointment as a 'backroom deal' and a 'serious mistake'. Mr Juncker, who wants an ever-closer political union across Europe, has ruled out any changes to the right of freedom of movement, which could thwart Britain's attempts to control its own borders.

However, he has said he will discuss minor treaty changes.

Labour and the SNP were accused of trying to 'hijack' the EU referendum last night – as they vowed to force Mr Cameron to allow 16 and 17-year-olds to vote.

The Prime Minister has prevented 1.5million EU migrants from getting a say in the referendum and his decision to use the general election register also means that only those aged 18 or over will get a vote.

Labour, the SNP and the Liberal Democrats will seek to amend the legislation. Their strength is in the Lords, where they have more peers, and it could create a stand-off between the two Houses.

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