EU Governance task force memo aims to paint Cameron into corner

The Slog’s main Brussels source has seen a secret memorandum outlining disciplinary steps to take against the UK should the Government stick to its strict ‘red line’ on not submitting budgetary proposals prior to Parliament seeing them. Recipients are listed by number (but not name) as ‘Task Force Economic Governance’. The TFEG is chaired by Herman van Rompuy.

The paper -written by a German official working for the Commission – refers to ‘previous discussions’, and confirms what it calls ‘a bundle’ of measures with which the UK would be hit without warning should the British Coalition Government prove intransigent. These include:

* An immediate fine (described as ‘very substantial’) following failure to comply with a majoritarian vote in favour of the pre-submission system. [Under the Lisbon Treaty, Britain would be legally bound to pay this]
* The threat of removal of any and all UK rights to help in the event of economic hardship as an EU member. [France’s Christine Lagarde is already on the record as supporting this measure]
* In extremis, the imposition of a ‘punitive tariff’ on all British goods sold to other EU members.

A hastily contacted FCO source denied any knowledge of such a paper, but when exposed to the above points told us, “The first two are possibilities, but the third would be illegal under the [Lisbon] Treaty and, once seen by the markets, have a catastrophic effect on both Sterling and the euro.”

A Parisian source admitted that “This sort of thing has been floated by Rehn [EU economic commissioner Ollie Rehn] but I would be amazed if this is anything other than a working paper. To boycott British goods with Channel Port blockades is one thing, but to freeze out an EU member like the UK would seem so desperate, it would be viewed by lenders as the beginning of an anarchy”.

Finally, the Slog’s Treasury mole also expressed surprise at the third item, saying,

“It would backfire horribly in almost every way. If you want my view, this is a ruse….you were meant to see this. It’s a classic van Rompuy tactic”.