A group of 23 EU member states is to forge

ahead with an intergovernmental agreement

EUROZONE - LATEST DEVELOPMENTS - A group of 23 EU member states is to forge
ahead with an intergovernmental agreement on tightening economic governance in the
eurozone, following a stormy summit in Brussels that saw the UK sidelined after it
overplayed its hand. All 17 euro countries as well as Denmark, Poland, Latvia,
Lithuania, Bulgaria and Romania have agreed to make the pact outside the current EU
treaty.
Sweden and the Czech Republic have said they need to seek parliamentary approval
before making a decision, while the UK and Hungary refused to join. Underlining
London's isolation, Budapest is understood to have said it needs more time to consider
the issue, meaning that if Stockholm and Prague sign on as well, the UK will be the only
country outside the new formation.
Talking to journalists at 5.30am local time - 10 hours after the meeting first started -
French President Nicolas Sarkozy, who publicly fell out with British Prime Minister David
Cameron at a summit in October, laid the blame firmly at London's door. "t's our British
friends' choice. We respect this choice but they cannot blame us. You cannot on the
one hand be asking for an opt out from the euro and on the other hand ask to be
involved in all the decisions of a euro that you not only do not want and but also often
criticize." ..."We are not going to apologize for what we are doing to save our currency,"
said the French president. He added that demands by Cameron for a protocol
exonerating the UK from certain laws on financial services in return for accepting a full
treaty change involving all 27 member states were "unacceptable".
The new set-up fits in well with Paris' wish to have countries move forward without being
unnecessarily constrained by recalcitrants or by EU institutions. The 23 have agreed to
greater budgetary surveillance by Brussels, stronger fiscal discipline as well as to
automatic sanctions for misbehaving states.
For his part, Cameron justified the situation on Friday morning by saying that the 23 "are
having to make radical changes including giving up sovereignty." "We had to pursue
very doggedly what is in Britain's national interest. wish colleagues well in the euro.
While there were strong disagreements, it was good natured. What was on offer wasn't
good enough for Britain." The break represents a major symbolic shift for the European
Union which has never before cemented a disagreement so publicly and so thoroughly,
however. "We would have preferred unanimous agreement," said European
Commission President Jose Manuel Barroso, adding that as this was not possible "this
was the only option left." ..."This does not mean the EU institutions will not have a role,"
he added on the question of whether the new EU17+ will be allowed to use EU27-level
institutions, making reference to legal advice from the commission's own department.
The new arrangement is likely to throw up a series of unpredictable political and legal
problems which will emerge as the intergovernmental text is drafted in time for the EU
leaders' Spring summit in March. Leaders will reconvene later on Friday to discuss legal
details surrounding their agreement.
avid Cameron's veto creates a new era for Europe and the coalition
"Sometimes it is the right thing to do to say ' cannot do that'." With that, David
Cameron announced a new British relationship with the European Union, and a new era
for the EU. He also raised questions about the future of his Coalition with the pro-EU
Liberal Democrats. Almost every leader at the Brussels summit, except Nicolas Sarkozy
of France, wanted to strike a deal to save the euro zone among all 27 EU members.
Mr. Cameron said he was vetoing an agreement among all 27 EU members because he
did not get the safeguards he wanted for the City.
David Cameron fought and lost, but wielded his veto, battled for Britain and put
concessions to the City of London ahead of the fate of the euro. For most of the rest of
Europe this is unforgivable. The EU's worst ever crisis and its possible resolution being
held to ransom so Cameron can please the City and his europhobic backbenchers.
For sure it will be payback
While the EU is now unable to follow the German-inspired route of renegotiating the
Lisbon Treaty to impose a decade of austerity on the eurozone, most of the 27 - the 17
eurozone countries plus at least another six joining them - ignore Cameron's objections
and strike out on a separate treaty.
That, however, may result, because of legal problems, in a weaker "fiscal union",
underwhelm the markets, and fail to shore up the currency. We will see. There will be
months of wrangling before the new treaty is ready by March.
And quietly there are plenty of leaders hiding behind Cameron, happy that the German
bid to re-open Lisbon is being dropped since they viewed this as a can of worms.
But despite his veto, Cameron does not get his financial regulation exemptions and
concessions. He has isolated himself and Britain, failed to achieve his key goal, shut
himself and Britain out of the negotiations on the future shape of Europe all in the name
of the Great British national interest. There are senior experienced UK officials who
believe this is a disaster for the British national interest.
Whether or not it has saved the euro remains, of course, to be seen, but the summit in
Brussels might go down as a watershed event, the beginning of the end for Britain in
Europe.
Source - EUobserver
ate: dec. 09.2011

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