Forex News – EU push for closer fiscal union concerns British politicians

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The recent push by German Chancellor Angela Merkel and French President Nicolas Sarkozy for a closer fiscal union through treaty changes is concerning many British politicians.

Eventhough the United Kingdom is not part of the euro zone, British Prime Minister David Cameron is heading to the Brussels Summit with an aim to protect British interests. The Conservative Party leader is facing pressure by his party members who are “euro-sceptic”. However, coalition Liberal Democrats are in favour of closer integration as a need to resolve the debt crisis.

Cameron will play a key role in talks in Brussels but risks delaying the Franco-German push for to get the backing of all 27 European Union members for treaty changes. The UK Prime Minister is opposing matters such as financial-services regulation.

“The more that countries in the euro zone ask for, the more we in Britain will ask for,” he said.

If Mr. Cameron returns from Brussels empty-handed, the reaction among Conservatives and the wider country “will not be pretty,” Mr. Carswell said. Recent polls suggest nearly 75% of the country wants any treaty to be put to a referendum.

One Brussels-based diplomat said much depends on “which” David Cameron turns up in Brussels. A “combative” Cameron demanding additional powers for the U.K. would be a “killer” for any EU-wide treaty, while British support for such a treaty would encourage others to follow suit, he said.