Britain in isolation as Europe mulls new fiscal union
Britain is threatend with islation as Europe found itself divided on Friday over building a fiscal union to preserve the euro, Xinhua reported.
Twenty-three of the 27 leaders agreed to pursue tighter integration with stricter budget rules for the single currency area, but Britain said it could not accept proposed amendments to the EU treaty after failing to secure concessions for itself.
Prime Minister David Cameron has antagonized many European leaders. In their view he used his veto at a time of Europe's hour of need.
If there was to be a treaty change, Cameron wanted an exemption from some financial regulations but Germany and France would not budge. Cameron concluded that agreeing to a change to the EU treaties would be against British interest.
His priority was to protect Britain's financial sector and the single market, which he regards as one of the principal benefits of belonging to the EU.
French President Nicolas Sarkozy said Cameron had made "unacceptable" demands.
But British Foreign Secretary William Hague said the move was "very sensible" and would not leave his country isolated.
He said signing up to a change to the Lison Treaty - the treaty which governs the running of the EU - would have meant a loss of national sovereignty.