Cameron's referendum gun is firing blanks

The Prime Minister cannot negotiate effectively in Brussels and give his MPs what they want at the same time

David Cameron’s position on whether there should be a referendum on Britain’s membership of the European Union is an entirely rational one. That isn’t to say he is doing the right things at European summits or has the right policy. It is simply an observation about the tricky position he is in, having to negotiate simultaneously in Brussels with fellow heads of government and in Westminster with his own party.

The two sets of demands are incompatible. In Brussels, the Prime Minister wants to influence the evolution of European institutions as they adapt to the single currency crisis. He needs to preserve British influence without signing up to any more political or economic integration. That balancing act gets harder when his continental counterparts think the UK is determined to sabotage their efforts and is, in any case, striding towards the exit. That is precisely the message that would be transmitted by a premature commitment to a referendum regardless of what comes out of current negotiations.

Tory Eurosceptics, meanwhile, argue that the prospect of a referendum will focus the minds of the PM and the rest of the EU, making it clear that the final deal has to be a good one for Britain ...or else. That view rests on the uncertain premise that other European countries desperately want to avoid a British exit. Diplomatic patience with the UK is running thin. Besides, seasoned observers of the Tory right (at home and abroad) recognise that the end game for many MPs is exit no matter what concessions are wrung from Brussels. Why should Angela Merkel or François Hollande offer David Cameron favours on the basis that it might help him control his party and buy a renewed mandate of the UK’s EU membership when they know perfectly well that it won’t?

But Cameron can’t simply tell his party to shut up and wait and see what he has negotiated before demanding a referendum. Tory MPs don’t trust his pledges on Europe and want some indication that the plebiscite they crave will materialise. So he has to indicate that he recognises the need for a vote without actually stating that there will definitely be one. Britain’s membership of the EU really ought to be ratified by a national vote but there isn’t much point asking the question until the terms of that membership are settled and they are now, thanks to uncertainty over the single currency, in flux. That is Cameron’s position and, as I say, it is reasonable given the political constraints he is under.

The most aggressively eurosceptic section of the Tory party, however, is minded to be unreasonable. I don’t mean that in the pejorative sense of ‘irrational’. I mean their patience has run out and they don’t want excuses. They feel Cameron has been given the benefit of the doubt on Europe in the past and has been flaky on the subject. (In fact he has been extraordinarily accommodating.) His promises to deliver something – maybe - at an unspecified point in the future are worthless currency in the Conservative ranks.

There is no great diplomatic advantage in sounding off about a referendum; if anything it weakens Britain’s negotiating position. Nor does the vague promise of a referndum do very much for non-aligned voters with other things on their minds. So the only point of even talking about a vote is as a gesture to the Ukip-leaning tendency and the only gesture that will satisfy them – a clear irreversible commitment to an in/out question - is one the Prime Minister cannot make. It is, in political terms, as if Cameron has pulled out a gun to look all macho eurosceptic when everyone knows he is firing blanks.

David Cameron "can’t simply tell his party to shut up and wait and see". Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.