PM in warning on EU treaty deal

Jan 31 2012

Britain will be ready to use legal action if the new treaty being agreed between 25 EU states threatens UK national interests, Prime Minister David Cameron has insisted.

Reporting back to the House of Commons after Monday's summit in Brussels, Mr Cameron rejected suggestions that the new inter-governmental agreement on fiscal discipline in the eurozone would create a new "inner group" within the EU.

Britain would neither sign nor ratify the treaty and would not be bound by any new obligations, he said.

But the Prime Minister faced mockery from Labour leader Ed Miliband, who said he had gone back on a promise in December that he would not allow EU institutions like the European Commission or European Court of Justice to be used to support the new agreement. "With this Prime Minister, a veto is not for life, it's just for Christmas," Mr Miliband told MPs.

Mr Cameron said some use of the institutions by the group of 25 is already permitted by existing EU treaties, and he added: "I made clear we will watch this closely and if necessary we will take action, including legal action, if our national interests are threatened by misuse of the institutions."

The PM blocked a full treaty of all 27 EU states on eurozone fiscal discipline by wielding the UK's veto at the December summit of the European Council.

On Monday, the Czech Republic joined Britain in saying it would not sign up to the "fiscal compact", expected to be finalised in March.

Mr Cameron told MPs: "The new agreement sets out roles for the European Commission and the European Court of Justice. While some of those roles are already permitted through existing treaties, there are legal questions about what is planned.

"It is in Britain's interest that the eurozone sorts out its problems and it is also in our interest that the new agreement outside the European Union is restricted to issues of fiscal union and does not encroach on the single market.

"The new inter-governmental agreement is absolutely explicit and clear that it can't encroach on the competences of the EU and they must not take measures that in any way undermine the EU single market. Nevertheless, I made clear we will watch this closely and if necessary we will take action, including legal action, if our national interests are threatened by misuse of the institutions."