In spite of a traditionally different approach towards European integration in Britain and Germany, under New Labour and the red-green coalition British and German European policy positions have moved closer than ever before. In a European Union which is increasingly characterised by a multiplicity of shifting alliances, a British-German working partnership could potentially provide leadership on a number of issues. The British government's failure to balance European and American interests over Iraq has, however, seriously damaged the basis for future British-German co-operation. Tony Blair's choice to sacrifice the domestic political campaign on the euro and to focus instead on supporting the Bush administration over Iraq has once again p...