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EU veto: Cameron says he negotiated in 'good faith' EU veto: Cameron says he negotiated in 'good faith'
(40 minutes later)
  
David Cameron has said he "genuinely looked to reach an agreement" on a EU Treaty but vetoed it because it was not in the UK's national interest. David Cameron has said he "genuinely looked to reach an agreement" at the EU summit but vetoed treaty change because it was not in the national interest.
Mr Cameron told MPs he negotiated in "good faith" and his demands were "modest, reasonable and relevant".Mr Cameron told MPs he negotiated in "good faith" and his demands were "modest, reasonable and relevant".
The prime minister said he vetoed because he did not secure "sufficient safeguards" on financial regulation. The prime minister said he used the veto as he did not secure "sufficient safeguards" on financial regulation.
There is no sign of his pro-European Deputy PM Nick Clegg, who usually sits alongside the PM in the Commons.There is no sign of his pro-European Deputy PM Nick Clegg, who usually sits alongside the PM in the Commons.
The prime minister is giving an account of the decisions he took in Brussels and will then face questions from across the House of Commons. Labour leader Ed Miliband questioned why Mr Clegg was not in the Commons, saying the PM could "not even persuade" his deputy of the merits of his actions.
'Not easy' BBC Political Editor Nick Robinson said he had been told Mr Clegg - who said on Sunday the result "was bad for Britain" - had decided that his presence in the Chamber would be a distraction.
No 10 insists the UK will still work closely with other EU countries but deputy prime minister Nick Clegg has said the result was "bad for Britain". 'National interest'
Explaining his decision, Mr Cameron said vetoing the treaty was "not an easy thing to do but it was the right thing to do". The statement began with Labour MPs shouting "where's Clegg" - and later during the statement Tory backbencher Nadine Dorries accused the Lib Dem leader of "cowardice".
The prime minister insisted the UK was still a "full member" of the EU and would vigorously debate the proposals put forward by the eurozone group. Giving an account of the decisions he took in Brussels, Mr Cameron insisted he had agreed his negotiating stance with his Lib Dem partners before the summit and the two parties had to "put aside differences" to work in the national interest.
During rowdy exchanges, Commons Speaker John Bercow has had to intervene on several occasions to restore order.
Explaining his decision to veto the treaty, Mr Cameron said it was "not an easy thing to do but it was the right thing to do".
He said he was faced with the "choice of a treaty without proper safeguards or no treaty at all".
He dismissed claims that he had demanded "an opt-out" for the City from EU directives on finance, seeking only proper regulations and a "level playing field" for British business in Europe.
"I went to Brussels with one objective - to protect Britain's national interest. And that is what I did."
He argued: "I do not believe there is a binary choice for Britain that we can either sacrifice the national interest on issue after issue or lose our influence at the heart of Europe's negotiating process.
"I am absolutely clear that it is possible to be a both a full, committed and influential member of the EU but to stay out of arrangements where they do not protect our interests."
'Bad deal'
But Ed Miliband said the prime minister had gained nothing from the negotiations and had "given up his seat at the table".
"He has come back with a bad deal for Britain," he told MPs. "Far from protecting our interests, he has left us without a voice."
Suggesting the outcome was a "diplomatic disaster" for the UK, Mr Miliband said the prime minister "did not want a deal as he could not deliver it through his party".
Mr Cameron's efforts were applauded by a succession of eurosceptic Conservative MPs, one - John Redwood - saying he had shown "excellent statesmanship".
"Britain today has much more negotiating strength because they know they are dealing with a prime minister who will say no if he needs to," he said.
But former Lib Dem leader Sir Menzies Campbell said it was "vital" for the UK to remain an engaged member of the EU, while his colleague Martin Horwood said international investors needed reassuring that the UK remained "at the heart" of European decision-making.
Mr Cameron blocked changes to the EU's Lisbon Treaty, which were aimed at addressing the euro crisis, at a summit on Friday.Mr Cameron blocked changes to the EU's Lisbon Treaty, which were aimed at addressing the euro crisis, at a summit on Friday.
Senior Conservative figures have insisted the veto was in part to protect the City of London from excessive intervention by Europe, but Labour and the UK Independence Party have both argued that actually no additional safeguards were achieved.Senior Conservative figures have insisted the veto was in part to protect the City of London from excessive intervention by Europe, but Labour and the UK Independence Party have both argued that actually no additional safeguards were achieved.
The treaty changes needed the support of all 27 EU members, including those not in the euro, such as the UK, to go ahead.The treaty changes needed the support of all 27 EU members, including those not in the euro, such as the UK, to go ahead.
It now looks likely that all 26 other members of the European Union will agree to a new "accord" setting out tougher budget rules aimed at preventing a repeat of the current eurozone crisis.It now looks likely that all 26 other members of the European Union will agree to a new "accord" setting out tougher budget rules aimed at preventing a repeat of the current eurozone crisis.
The new accord will hold eurozone members to strict budgetary rules including:The new accord will hold eurozone members to strict budgetary rules including:
  • a cap of 0.5% of GDP on countries' annual structural deficits
  • "automatic consequences" for countries whose public 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
  • a cap of 0.5% of GDP on countries' annual structural deficits
  • "automatic consequences" for countries whose public 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
French President Nicholas Sarkozy has suggested he and German Chancellor Angela Merkel "did everything" to let the UK agree to the treaty but Friday's outcome signalled "there are now clearly two Europes".French President Nicholas Sarkozy has suggested he and German Chancellor Angela Merkel "did everything" to let the UK agree to the treaty but Friday's outcome signalled "there are now clearly two Europes".
However the deal still has to be agreed by a number of national parliaments, and the reaction of the financial markets suggests it has failed to bring a swift end to the euro crisis.However the deal still has to be agreed by a number of national parliaments, and the reaction of the financial markets suggests it has failed to bring a swift end to the euro crisis.
The BBC's Rob Cameron in Prague said: "Commentators here have taken a more cautious - and arguably more accurate - view, reflecting the fact that the Czechs haven't signed up to anything yet."The BBC's Rob Cameron in Prague said: "Commentators here have taken a more cautious - and arguably more accurate - view, reflecting the fact that the Czechs haven't signed up to anything yet."
The current French presidential front-runner, Socialist Francois Hollande, said on Monday that if he was elected next May he would renegotiate the accord, saying: "This accord is not the right answer."The current French presidential front-runner, Socialist Francois Hollande, said on Monday that if he was elected next May he would renegotiate the accord, saying: "This accord is not the right answer."
One of Chancellor Merkel's close aides in the German parliament told the BBC's Stephen Evans he does not see why "Britain should stay isolated".One of Chancellor Merkel's close aides in the German parliament told the BBC's Stephen Evans he does not see why "Britain should stay isolated".
CDU Chief Whip Peter Altmaier said: "Over the last years there has been very intensive cooperation between the UK and Germany and I'm deeply convinced that this will continue. It will last. We have so much in common and there are so few issues that divide us."CDU Chief Whip Peter Altmaier said: "Over the last years there has been very intensive cooperation between the UK and Germany and I'm deeply convinced that this will continue. It will last. We have so much in common and there are so few issues that divide us."