Britain will be exempt from paying for crises in the Eurozone from 2013.
According to Sky News, European leaders have reached a “clear and unanimous agreement” which means Britain will not be expected to bail out Eurozone countries from 2013.
On the final day of an EU summit, Prime Minister David Cameron said Britain will not bail out the eurozone once the new bail out fund, the European Stability Mechanism, is created.
However Eurosceptic Conservative MP Douglas Carswell says in the Daily Mail the agreement is not legally binding and so could be overturned in future.
He says: “This is a piece of paper that has no legal force. It demonstrates onlyone thing – the complete impotence of the British Government.”
The ESB will replace the temporary €750bn European Financial Stability Facility. But the creation of the fund will mean the Lisbon Treaty will need to be amended.
Cameron said: “It is in our interest that the Eurozone achieve stability and that treaty change is a key part of that.”