UK left isolated in Europe over intergovernmental treaty
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The UK is now the only country refusing to consider whether to join an intergovernmental treaty aimed at saving the euro.
Until now Hungary had stood beside the UK saying it would not take part in the treaty. But according to the Guardian, Hungary has joined Sweden and the Czech Republic in saying it will take the final deal to its parliament. It means that 26 of the 27 member states are now signed up to negotiations or willing to consider being involved.
Talks in Brussels to secure a new EU treaty to strengthen fiscal union failed after Prime Minister David Cameron vetoed any agreement as he was unable to secure concessions for the UK’s financial services industry.
Eurozone leaders are now working on a new intergovernmental treaty.
Following the talks, which ended early this morning, Cameron said: “We wish them well because we want everyone to sort out their problems because we all need that growth.
“But at the end of the day I made my judgement that it was not in Britain’s interests. I effectively wielded the veto.”
According to the Financial Times, French president Nicolas Sarkozy said: “Very simply, in order to accept the reform of the treaty at 27, David Cameron asked for what we thought was unacceptable: a protocol to exonerate the UK from financial services regulation. We could not accept this as at least part of the problems Europe is facing came from this sector.”
France and Germany were pushing for changes to the EU treaty which would see EU member states subject to the same financial regulation and the creation of a financial transaction tax. Cameron has warned a European FTT would hit the UK hardest, see financial services firms move outside Europe and burden pension savers and other investors with extra costs.
Cameron said: “I had to pursue very doggedly what was in British national interest.”
European Central Bank president Mario Draghi signalled his approval for the intergovernmental treaty, which the FT says is a key vote of confidence and could allow the ECB to move more aggressively in eurozone bond markets.
However it is unclear how the treaty will be enforced, as EU institutions such as the European Commission cannot have a formal role in agreements outside of the EU treaties.
The new treaty is expected to be published in March.
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Readers' comments (10)
Anonymous | 9 Dec 2011 8:41 am
About time our spineless political classes actually did something right in our national interests. The Euro is dead and we are best out of this mess. They only want our money to continue to indulge themselves. Bye!
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Anonymous | 9 Dec 2011 8:57 am
Well done Mr Cameron about time...
Let's look at the most important industries in each country..
france-agriculture-veto.
germany-manufacturing-no discussion.
UK-financial services-want to impose financial tax.
Let them keep their failed euro and we'll keep our competitiveness WORLDWIDE not just in bankrupt eurozone...
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Anonymous | 9 Dec 2011 9:18 am
The Germans and French will want common tax rates such as a common corporation tax rate circa 20%.
Can anyone see the Irish agreeing to this?
Come Dave now build on this. How about cutting UK taxes on wealth creation and employment?
Cut Corporation tax to 18% and NI by at least 1% on employer contributions immediately.
Then watch the Germans and French squeal.
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huw | 9 Dec 2011 9:38 am
Well done DC. The Germans and French would love to see the City castrated. I support better regulation within the UK but the main financial beneficiaries of a strong City should be UK citizens. I haven't liked Cameron too much so far but today I am warming to him somewhat.
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Keith | 9 Dec 2011 9:51 am
He's found a backbone at last.
All this scaremongering about us being isolated/losing trade with Europe etc. It is like some science fiction film where those in power or with influence tell the citizens that they can't leave the sealed bubble of a city because the air outside is unsafe to breathe, when in reality they know it is not.! Once one person finds life can be sustained on the outside the edifice soon crumbles. Leave Europe to it's failed Euro they all lied about the figures to get in. Let them fudge the failed concept once more. Eventually they will think the unthinkable that they got it wrong.
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Mary Lockyer | 9 Dec 2011 10:23 am
Agreed, well done DC, the Germans and French see our Financial Services as a potential "cash cow" to prop up failed policies, trade will not stop if we left Europe, however, our fundamental weakness as an economy is having abandoned manufacturing and being more self suffiicent, as inevitable rises in price occur, as China and India aspire to a higher standard of living, and those with essential natural resources flex their muscles, we will have to re-evaluate the long term effect "globalisation" has had. The writing has been on the wall for some time, we just have not wanted to read what it said.
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Anonymous | 9 Dec 2011 10:25 am
I for one am finally proud of David Cameron, right move at the right time.
Enough is enough from Europe and I do believe he has done the right thing.
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Peter Herd | 9 Dec 2011 11:42 am
I just hope that it is that easy, we will see in the years ahead
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Meijerati | 9 Dec 2011 5:45 pm
Take care DC! Those who are not sitting at the table will be on the menu.
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Julian Stevens | 9 Dec 2011 7:33 pm
So what? Certain people talk about the dangers of the UK being marginalised and not having sufficient influence in the EU decision-making processes, but nobody ever gives any examples of what this might actually mean in practice. It's all hot air and hubris.
Switzerland isn't part of the EU and what harm has it done to the Swiss people, the Swiss economy, Switzerland's international interests or to any other aspects of Swiss interests? None whatsoever as far as I can see.
We're better off out of it, rather than agreeing to throw further millions (maybe billions) of pounds of good money after bad and surrendering yet more elements of our national sovereignty.
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