Eurozone deal leaves Britain isolated
09 Dec 2011
EU nations have taken a major step towards closer integration, largely on fears of leaders that the EU project was in danger. Last night most of the countries in Europe, except Britain, agreed to partly dispense with national sovereignty to embrace a more integrated future with tax and spending plans to be referred to European officials before national governments.
Britain, the region's third largest economy after Germany and France, refused to join the other 26 countries in a fiscal union and was isolated.
The monetary union is moving fast towards a fiscal union, according to analysts. Countries that overspent would automatically be hit with sanctions.
The late-night discussions have produced a two-speed Europe. Accepting the result, French president Nicolas Sarkozy said it was ''the responsibility of those who opted out of the single currency''.
Several countries that were not in the euro zone had argued passionately against a Europe of the "ins" and "outs", of two categories of membership but to no avail.
Europe's leaders failed to agree on changes to the EU treaties, rather new rules would now be adopted and implemented through an inter-governmental treaty.
