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UK vetoes EU treaty

Prime Minister David Cameron has vetoed an EU-wide treaty change to tackle the Eurozone crisis, stating that it was “not in the UK’s interest”.

Now a new ‘accord’ will be drawn up for at least 23 of the 27 member states, countries in the Eurozone and others who want to join, setting out tougher budget rules.

Countries will be required to have a structural deficit no greater than 0.5% of the gross domestic product, and to submit their national budgets to the European Commission, which will have the power to request revision.

The veto was used amid concerns of the implications of the deal, which would mean giving up a degree of national control. However, some are worried it will mean a degree of isolation and a loss of influence over the single market.

Cameron said: “We want the Eurozone countries to come together and solve their problems. But we should only allow that to happen within the EU treaties if there are proper protections for the single market, for other key British interests.

“Without those safeguards it is better not to have a treaty within a treaty, but have those countries make their arrangements separately.

“It was a tough decision but the right one.”

Foreign Secretary William Hague insisted that decisions would continue to be made in institutions that include all 27 members, and “no treaty made outside of those institutions can undercut or override the treaties of the European Union”.

European Commission President Jose Manuel Barroso said it was the “proper decision to go ahead at least with those ready to commit immediately.”

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