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EU split over new treaty

Friday, December 09, 2011 - 01:43

Dec. 9 - Britain and Hungary exclude themselves from new EU treaty as Nicolas Sarkozy says those in the euro must do all they can to save the currency. Lily Grimes reports.

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An historic rift within the European Union led to a long night of negotiations. But early on Friday EU leaders announced they had found a solution. The majority want tighter integration with stricter budget rules but Britain's prime minister dug his heels in. (SOUNDBITE) (French) FRENCH PRESIDENT NICOLAS SARKOZY SAYING: "David Cameron asked for something that we all thought was unacceptable: a protocol in the treaty that would allow the United Kingdom to be exempt from a certain number of regulations on financial services. We weren't able to accept that because we consider on the contrary that a good part of the worries of the world comes from the deregulation of financial services." Those countries within the euro will now work on an intergovernmental treaty that excludes Britain and Hungary. In his defence David Cameron said tension between those in and those out of the single currency is inevitable. (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON SAYING: "And so I think the idea of Europe being more of a network where you choose the organisations you join and you choose those organisations you don't join, is actually a way that Britain can get what we want and what we need." Germany's Angela Merkel was upbeat about the outcome saying the new agreement would bring stronger rules and more coherence in Europe. This is the eighth crisis summit this year as leaders fight to save the single currency. Lily Grimes, Reuters

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