Financial Times FT.com

MERKEL IMPRESSES WITH PLAIN SPEAKING

By Quentin Peel

Published: December 17 2005 02:00 | Last updated: December 17 2005 02:00

Angela Merkel, Germany's new chancellor, is not a great orator, nor a very charismatic figure in the media spotlight. Yet she emerged from her maiden summit of the European Union yesterday as a critical player in the bruising negotiations over a new budget deal, putting Germany back at the heart of EU decision-making, writes Quentin Peelin Brussels.

Plain-speaking Ms Merkel came to the summit as a broker, determined to defuse the hostility of Britain and France over farm spending and the UK rebate. She declared her interest in engaging the small member states - especially the poorer new members from eastern Europe - and preventing a confrontation between rich and poor over budget contributions.

From the start of the summit, she impressed leaders with her command of the detail involved in settling a seven-year budget deal. The days when Germany could be relied on to resolve any budget wrangle between the EU members by paying a larger cheque are long gone. Reducing the German federal budget deficit to 3 per cent of gross domestic product is the top priority for Ms Merkel's grand coalition in Berlin. Yet she was the first to suggest that raising the ceiling on budget contributions from the level proposed by the UK presidency would be the way to solve the EU budget deadlock, and bring the unhappy Polish government on board.

French officials were impressed by her style. "She is very good on the details, but also very careful not to give away her bottom line," said one diplomat who saw her in action at bilateral meetings with Jacques Chirac, the French president.

The British were more cautious. "Frankly, the biggest thing is she is not Gerhard Schröder," said one official, still smarting at the bad chemistry that existed between Ms Merkel's predecessor and Tony Blair, the prime minister. But the mood has clearly changed. "It is a much more constructive atmosphere," he said.

Experienced EU-watchers are hopeful that Ms Merkel's style will mark a return to the days of Helmut Kohl, her erstwhile mentor, who was far more of a convinced European than Mr Schröder.

The signs from her first summit are that she shares many of Mr Kohl's convictions. She talks passionately about how a coherent and integrated EU is an essential part of making Europe more competitive with the rising economies of Asia.