FRANCE and Germany have issued their clearest warning yet that they are ready to move with other countries to closer economic and political union outside the EU if Britain blocks their right to do so inside the EU.
The warning came as the French and German governments formally presented proposals to the Maastricht Treaty review conference in Brussels which would eliminate the present power of just one country to veto all the others co-operating more closely on their own.
Both Bonn and Paris insist that their "flexibility" strategy to allow "enhanced co-operation" among those EU countries which want it does not mask any immediate intent to exclude Britain from closer integration.
But they have in effect served notice on the British Prime Minister, Mr Major, that what they are prevented by Britain from doing inside the EU they are ready, if necessary, to do outside.
Neither government yesterday would spell out the precise areas where an inner core group of EU countries might move to closer union. But both France and Germany may want closer co-operation ranging from economic action to supporting a single currency, through foreign and security policy and joint action on immigration.
"There are those who have fears about our proposal. But we insist on closer co-operation within the framework of the European Union and in a way which safeguards the single market and the integrity of the EU Institutions," the German Minister for European Affairs, Mr Werner Hoyer, declared. "We want to leave the door open to all to join us, if necessary at a later date.
"But, if we are denied the right to enhanced co-operation in the European Union, we will have to do it outside in various other arenas, on what will inevitably be a more selective basis," he said.
Mr Hoyer insisted that France and Germanywere less concerned about the Euro-sceptic policies of the present British government than about the need to preserve the capacity of the EU to act effectively as it expands from 15 to between 20 and 30 member-states in the years ahead.
"Flexibility is going to be a big, long-term project and a major item in the review of the Maastricht Treaty," the French Minister for European Affairs, Mr Michel Barnier, said. "Perhaps the UK will eventually change its views on this issue. We want the UK involved in as many fields of co-operation as possible."
France and Germany accept that the principle of enhanced cooperation, like the treaty as a whole, will have to be agreed by all 15 EU countries. But they insist the veto must be removed when a majority of countries actually decides on the concrete areas in which they want to co-operate.