Britain blocks changes to EU treaty, eurozone members to agree separate deal

Delegates at the ongoing EU summit in Brussels failed to agree EU treaty changes after objections from the UK. British Prime Minister David Cameron (in picture) said he rejected plans because safeguards to the British economy were not met. He said the proposals “weren't in Britain's interests,” adding that he was not prepared to give up any more sovereignty to Brussels. UK foreign secretary William Hague said that safeguards for the operation the of the single market and Britain's financial services market had not been met. French President Nicolas Sarkozy called the UK's demand's “completely unacceptable.” Hungary also rejected the treaty, and the Czech Republic and Sweden would not agree any changes until consulting their parliaments. Romania agreed to the changed to the treaty. Cameron's full speech on the subject here. Following failure to achieve unanimity on treaty changes, a pact between countries in favor of France and Germany's plans for closer economic union and tighter control on national economies has been thrashed out. The new deal will include all eurozone nations and at least six others. Politicians have not been slow in heralding this eurozone pact as the best way forward and denying that the countries outside the agreement will be in anyway sidelined. Jose Manuel Barroso called the agreement the best way forward. Germany's Angela Merkel referred to the Schengen zone agreement as a precedent of a deal between a limited number of EU states. Fears of the pact creating a two speed Europe have been vigorously rejected by politicians. Liam Lever, liam@romania-insider.com (photo source: 10 Downing Street)