David Cameron has defended his decision to block an EU-wide treaty change to tackle the eurozone crisis, despite warnings it will leave the UK isolated.It looks likely that all 26 other members of the European Union will instead agree to a new "accord" setting out tougher budget rules.
Labour said the UK would be left out of key decisions affecting its future.
But the PM said he had done "the right thing" and the UK would continue to be a major player in the single market.
Mr Cameron said he had demanded certain safeguards in return for a change to the Lisbon Treaty - the treaty which governs the running of the EU.
Those concerned maintenance of the single market and protection of the financial services sector in the City of London, but the prime minister said such guarantees were not forthcoming.
Having failed to reach an agreement of all 27 EU members, the 17 eurozone countries and the other EU states apart from the UK are expected to sign up to the new deal, which includes:
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End Quote David CameronI think I did the right thing for Britain”
• a commitment to "balanced budgets" for eurozone countries- defined as a structural deficit no greater than 0.5% of gross domestic product - to be written into national constitutions• automatic sanctions for any eurozone country whose deficit exceeds 3% of GDP
• a requirement to submit their national budgets to the European Commission, which will have the power to request that they be revised
Mr Cameron said the abandoned treaty change involving all 27 members had been in danger of "distorting the single market".
"I think I did the right thing for Britain," he said. "We were offered a treaty that didn't have proper safeguards for Britain and I decided it was not right to sign that treaty."
He added: "This does represent a change in our relationship with Europe, but the core of our relationship - the single market, the trade, the investment, the growth, the jobs that we want to see - that remains as it was."
taken from http://www.bbc.co.uk/news/uk-politics-16116276