Thatcher wary of Germany after euro: Biographer

Former British prime minister Margaret Thatcher believed the euro was always going to lead to the Germanification of the eurozone rather than the Europeanisation of Germany, according to her biographer Charles Moore.

The former editor of the Daily Telegraph was in Dublin yesterday speaking at the Institute of International and European Affairs about whether Mrs Thatcher was justified in her increasing level of euro-scepticism towards the end of her premiership.

The Iron Lady had been an enthusiastic supporter of the EEC in its early days, said Mr Moore. She supported Britain’s referendum on joining the Community in 1975.

Moreover, when she took over as prime minister in 1978, Mrs Thatcher believed the Single European Act was an important step in promoting free trade across Europe as well as rolling back the frontier of the State.

But she would later change her mind. Towards the end of her tenure, Britain’s first female prime minister thought that the EU was becoming too centralised. Worse still, she believed that under the Commission presidency of Jacques Delors, the bloc was becoming socialist, said Mr Moore.

However, the fall of the Berlin Wall and the reunification of Germany was the single biggest event that shaped her increasing antipathy to Europe.

These feelings were initially based on “anti- German prejudice”, said Mr Moore.

There was also a compelling economic rationale to her position, he added.

The French wanted a single European currency to constrain Germany’s growing power. But because the Deutschmark was the strongest currency in Europe, it was inevitably going to lead to the Germanification of the region.

Moreover, Mrs Thatcher believed a ‘one size fits all monetary policy’ was not sustainable over the longer term and this would lead to an overall loss of competitiveness vis-a-vis the rest of the world.

Mr Moore said that the former prime minister’s concerns have been fully vindicated. He had supported Britain’s decision not to join the single currency.

Now British prime minister David Cameron has promised an in/out referendum, which is building up a head of steam. “Now he has to do something big, although he doesn’t quite know what that is.”