Brussels must watch its step as it tries to assert its authority over Berlin

 

Proposals to integrate the supply chains of the British and German defence industries, and ease rules on military procurement, collide head on with the big push by France and Brussels for an integrated EU defence industry, under a newly-minted defence commissioner, all linked to the EU’s law-making machinery, and therefore subject to the European Court of Justice.

This emerging structure is highly protectionist and designed to keep “third countries” well away, especially Britain. 

Sir Keir aims to win over Germany, bringing it closer to Holland, the Nordics, Poland, Italy and others less wedded to EU ideological purism and defence mercantilism.

The EU institutions can bring almost any member country to heel if it strays too far

Enforcers toppled an elected Greek government in 2010, and toppled the elected Italian government in 2012 after Silvio Berlusconi threatened to take Italy out of the euro. 

In both cases they parachuted in an EU loyalist. They starved Greek banks of Target2 liquidity in 2015 until Syriza rebels finally capitulated.  

But they cannot treat Germany like that without risking serious consequences

Ambrose Evans-Pritchard Telegraph 30 August 2024

https://www.telegraph.co.uk/business/2024/08/30/europe-anglo-german-axis-astonishing-turn-events/

Target2 credits have reached €920bn

https://englundmacro.blogspot.com/2019/06/target2-credits-have-reached-920bn-and.html