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UK officials 'to observe negotiations' over EU deal UK officials will join talks over eurozone deal
(about 14 hours later)
The UK has been asked to play a role in negotiations over an EU-wide fiscal pact despite refusing to sign up to the proposed agreement. UK officials will join talks over what should be in a eurozone fiscal pact, despite refusing to sign up to it.
No 10 said the UK would participate in "technical discussions" over the accord since, although not an active participant, it wanted it to succeed. The UK has accepted an invitation from the European Council to join talks, alongside 17 eurozone and nine other EU states considering signing up.
href="http://www.ft.com/home/uk" >The Financial Times reported that UK officials might have "observer status". Last week David Cameron vetoed a treaty change involving all 27 EU states, saying it was not in UK interests.
This would enable the UK to monitor discussions on the role EU institutions may play in enforcing the deal. No 10 said the UK would join "technical discussions" as "equal participants". However it will not have a vote.
David Cameron's decision to veto a treaty change of all 27 EU members last week led to a huge row between the Conservatives and Lib Dem partners. The aim is for the new fiscal compact to be drawn up by early February.
The UK declined to sign up to the agreement - which proposes central oversight of EU members' budgets, tougher sanctions for overspending and moves towards tax harmonisation - because of a lack of satisfactory safeguards on financial regulation. Common tax
'Right way forward' BBC Europe correspondent Chris Morris said it remained to be seen what France and Germany, among others, would try to get inserted into the text during discussions.
Labour have said the outcome has left the UK isolated in Europe and unable to influence key decisions affecting the economy. He said Franco-German proposals which emerged before the summit were much more detailed and ambitious - on issues like a common eurozone corporate tax base and financial transactions tax - than what had actually been agreed in Brussels.
But the coalition government has insisted that it remains committed to being fully engaged in Europe and co-operation in a wide range of areas. And it remained to be seen if all the other 26 states would sign up.
The UK has now accepted an invitation to sit in on negotiations in the coming weeks to formalise last week's outline deal. On Thursday the Czech and Hungarian leaders, whose countries are not in the eurozone, said they would not sign anything that would force them to give up independent tax policies.
Although much of what is discussed is not likely to directly affect the UK, the BBC's political correspondent Vicki Young said that with Treasury officials included in the European working group, Britain will be able to keep a close eye on deliberations. The Financial Times reported that UK officials might have "observer status", allowing them to monitor discussions on the role EU institutions may play in enforcing the deal.
No 10 said that, in a phone call with European Council president Herman van Rompuy on Thursday, the prime minister "reiterated 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". Richard Corbett, an adviser to President of the European Council Herman Van Rompuy, told BBC Newsnight UK officials would "have the right to speak at those talks and put their view forward".
'Boost confidence' 'An observer'
"That's why we have agreed to participate in technical discussions to take forward this work," a spokesman added. But he added: "The agreement that is being negotiated is among the other member states of the union, certainly all eurozone countries and all the other ones that choose to join in.
"The UK has already indicated that it does not wish to join in with the treaty therefore it will be in a sense an observer at those talks."
But Downing Street said on Friday the UK had been invited to join the talks as "equal participants".
"You need people there from all the 27 to work out how to implement [the summit deal]," a spokeswoman for the prime minister said.
The British delegation would be "there to ensure that the views of the UK are represented and our national interest is maintained".
The government says it wants 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".
Mr Cameron has supported moves for closer fiscal integration in the eurozone to help it deal with its debt crisis.
But he would not agree to treaty changes that would involve all 27 EU states last week, arguing he had not been given safeguards for the UK's financial services industry and access to the single market.
Instead the 17 eurozone countries and all other EU states apart from Britain said they would consider an intergovernmental agreement which included tougher fiscal rules for the eurozone.
Mr Cameron's critics accused him of leaving Britain without a seat at the table when important issues that could affect Britain - like the single market - were discussed.
And his deputy PM, Lib Dem leader Nick Clegg said later the outcome was "bad for Britain". He said Mr Cameron had been put in a "very difficult position" by his Eurosceptic backbench MPs.
BBC Brussels correspondent Matthew Price said that despite the UK being invited to join talks about what would be in the accord, it was unlikely that it would be present at future meetings following an agreement.
Whether the EU Commission and other EU-wide bodies can be used to enforce and monitor rules applying to the new grouping is likely to be one of the most controversial points up for discussion.Whether the EU Commission and other EU-wide bodies can be used to enforce and monitor rules applying to the new grouping is likely to be one of the most controversial points up for discussion.
No 10 also confirmed the UK would take part in an informal summit of all 27 EU members in January focused on boosting jobs, growth and competitiveness.No 10 also confirmed the UK would take part in an informal summit of all 27 EU members in January focused on boosting jobs, growth and competitiveness.
France and Germany want the new agreement to be concluded as soon as possible to help boost confidence in the eurozone but the nine other countries outside the single currency area have said they will need Parliamentary approval before they can agree to take part.