The great EU battle begins

He will demand EU allows Britain to ban payouts to migrants for first 4 years

DAVID Cameron will demand sweeping changes to EU benefit rules – including a ban on migrants claiming any handouts for four years – as the price for trying to keep Britain in Europe, Downing Street said last night.

The Prime Minister will tell Angela Merkel and other EU leaders he now has a ‘mandate’ from the British people for reforms designed to slash the numbers coming from Europe.

His official spokesman said proposals to ban them from claiming any benefits, including tax credits, for four years were now ‘set in stone’ – as are plans to allow the deportation of jobless migrants after six months and moves to ban them from sending child benefit home to children living abroad.

Other ‘red line’ issues include removing Britain from the EU’s founding principle of an ‘ever-closer union’.

Germany has indicated it would meet some of the Prime Minister’s demands, but insisted no new EU treaty would be drawn up. Mr Cameron will table the details at an EU summit next month. But he is expected to hold preliminary talks with a number of leaders in the Baltics next week.

A spokesman said the negotiations were ‘something he wants to get on with’.

The sense of urgency will fuel speculation that Mr Cameron could hold the in/out referendum on Europe next year – 12 months earlier than promised. Downing Street yesterday said no decision had been taken on timings, but acknowledged the referendum could be held ‘earlier’ if negotiations allow.

Chancellor George Osborne, who will play a leading role in negotiating a new EU deal, travelled to Brussels yesterday for preliminary talks with finance ministers.

He said: ‘ We come here with a very clear mandate to improve Britain’s relationship with the rest of the EU and to reform the EU.

‘We go into the negotiations aiming to be constructive and engaged, but also resolute and firm, and no one should underestimate our determination to succeed.’

In an early victory yesterday, the European Commission backed down over demands that all EU countries must take their share of migrants crossing the Mediterranean into Europe.

The move, which would mean the UK taking an estimated 60,000 migrants a year, was proposed this week. But, following warnings that the UK would veto the plan, the Commission said Britain would not be forced to take part.

Germany’s finance minister Wolfgang Schäuble, who held talks with Mr Osborne yesterday, indicated the EU was willing to meet some of Mr Cameron’s demands. He said: ‘The British wish to reduce bureaucracy and reduce misuse of free movement is to be welcomed.’ But he warned there was little prospect of a new EU treaty, saying: ‘The German government wants treaty change one day. We don’t think it will happen tomorrow.’

Mr Cameron has all but abandoned hope of getting an opt-out from the EU’s principle of free movement of labour, following signals from Berlin that Mrs Merkel would block the move.

But senior Tories believe they could slash immigration from the EU by removing the lavish benefits on offer to those who come to Britain, whether in work or not. Research by the think-tank Open Europe last year revealed generous tax credits provide a massive incentive for EU workers.

A migrant worker with two children earning the minimum wage sees their basic income of less than £200 a week boosted by £330 in tax credits and other benefits, for a total of £527 a week. A similar worker in Spain could expect to receive £362, while a worker in Bulgaria would receive just under £150.

In total, Britain spends £5billion a year on tax credits for 415,000 qualifying migrant workers.

Mr Cameron will also demand the right to kick out those who fail to find a job within six months. And he will seek tougher powers to deport foreign criminals and prevent them returning to Britain. Migrants from the EU will be barred from qualifying for a council house until they have lived in this country for four years. And they will no longer be allowed to claim child benefit for children who live abroad, which currently costs around £30million a year.

Mr Cameron is also seeking protections for the City, and new powers to allow national parliaments to work together to block unwanted laws from Brussels.

The proposals fall well short of the demands of some Tory backbenchers. But Eurosceptics have indicated they would be willing to back the Prime Minister in return for a referendum in which they can campaign to leave the EU.

However, Mr Cameron is under pressure to abandon plans to force Cabinet ministers to adopt a common position in the referendum.

‘Determination to succeed’

‘We can find common solutions’