Britain keen to override 'Paris-Berlin axis' in EU

Britain will try to weaken the recently revived Franco-German alliance as the European Union prepares to take crucial decisions that will determine its future powers and structure.

Today is the 30th anniversary of Britain's entry to the EU and the Government has disclosed plans to work more closely with France on EU decision-making while agreeing with Germany on economic policy. A government source described the reforged Paris-Berlin axis as "a marriage of convenience rather than ideology" that was aimed at appealing to public opinion in both countries.

The aim of Britain's offensive is to stop France and Germany setting the agenda when a new EU governing treaty is drawn up. The battleground will be the convention that will produce proposals this summer.

France and Germany will make a joint submission to the convention later this month that marks the 40th anniversary of the Elysee treaty, which sealed their post-war co-operation. The move threatens to undermine Britain's early successes in shaping the blueprint of the convention.

Peter Hain, the cabinet minister who represents the Government on the convention, told The Independent yesterday that France and Germany could not run Europe alone. "Europe today is a much more pluralistic Europe. The idea that 15 or 25 [EU members] can be run by two countries is very unlikely," he said. "It is important that Germany and France have a closer relationship than they have enjoyed in the last five years. It is good for Europe. We have a closer relationship with Germany and France separately than probably we have ever enjoyed."

Insisting he was "relaxed" about the Paris-Berlin submission to the convention, Mr Hain said: "The days of Britain's insecurity and inferiority complex are over. We are right at the heart of Europe. We don't always get our own way, but then nobody else does."

Mr Hain, the Secretary of State for Wales, won early victories when the convention agreed plans to enforce the rule on subsidiarity "devolving decisions to national level where possible" and a guarantee that a new EU charter of rights could not overrule the British courts. But he faces difficult battles over the next few months on demands for more social protection for workers and pressure for more majority voting on tax, foreign and defence policy.

Britain shares France's view that national governments should be in the EU's driving seat and opposes Germany's federalist vision. But Britain will join Germany in resisting French-backed demands for more labour market regulation.

Mr Hain said: "It is a very old-fashioned agenda that ignores the fact that Europe has too high a level of unemployment and that would only help those in jobs and holding a trade union card, not those out of work who would like to join a union."

He denied the British Government wanted an American-style free-market approach. "We support a vision of a social Europe by minimum standards, but in a way that does not erect a protectionist barrier to job creation," he said.

* Tony Blair sent a clear signal yesterday that he had not ruled out calling a referendum this year on whether Britain should join the euro and was keeping the door firmly open for a poll.

The Prime Minister used his New Year message to confound reports that Downing Street had ruled out a referendum during this parliament.