16/12/2011

UK To Watch EU Deal 'From Sidelines'

The UK is to attend negotiations on the European rescue deal as "observers" only after David Cameron's decision to veto the terms of the agreement.

According to The Financial Times, UK officials are expected to have "observer status", during "technical discussions". UK officials said that although the UK had now opted out of the agreement, they still wanted to see it work.

A spokesman for Mr Cameron said: "The Prime Minister reiterated that he wants the new fiscal agreement to succeed, and to find the right way forward that ensures the EU institutions fulfil their role as guardian of the EU treaty on issues such as the single market.

"That's why we have today agreed to participate in technical discussions to take forward this work."

At the weekend, David Cameron made the surprise decision to veto a change to the EU treaties affecting all 27 EU members, leading to a public split between the Conservatives and Lib Dem partners on the issue.

Meanwhile, in recent days, Hungary and the Czech Republic have said they would not join the new agreement unless plans for tax harmonisation were dropped.

Neither country uses the euro and both said in Brussels last week that they would consult their parliaments before deciding whether to sign up.

(DW)

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