David Cameron has vetoed the proposed treaty on the euro involving all 27 member states because he is so incapable. He failed to adequately negotiate a situation which would ensure Britain is kept in the process.
If the treaty of all 27 member states had gone ahead British sovereignty would not have been anymore affected because British sovereignty was never at threat, the new treaty clause was solely about the euro.
The real consequence of Cameron’s actions for Britain is that our influence will now be severely limited. There is a real danger that we will not be able to protect important British interests especially in the EU single market which is very important for British trade and jobs.
Just one example of our monthly trade with the EU shows how important it is financially to the UK to have such good relations. An example can be found in just one month in the UK’s EU exports which increased by £1.6 billion (13.4%) in a single month from August-September 2011, to £13.6 billion. And compared to September 2010, exports have increased by £1.7 billion (14.8 %).
It’s becoming increasingly apparent that Cameron is despised in the EU, by Merkel and Sarkosy especially. The problems began in 2009 when Cameron pulled Conservative MEPs out of the European People’s Party (EPP), the centre-right political grouping in the European Parliament. He then formed his own grouping with various fringe parties from across Europe, leaving Merkel and Sarkosy incandescent.
Such a loss of power is not helpful for the UK and it is imperative that we continue to be part of future negotiations with the euro zone. A two tier Europe, which may well result from this, would be disastrous for the UK and as a result we will not be able to fully protect British interests, as Sarkosy has already pointed out.
Domestically there are going to be fallouts. Nick Clegg, is as we know, very pro-European and yet the Deputy Prime Minister is also part of a government which has loosened ties with the EU and lost the respect of European heads of state. This will undoubtedly have implications for the survival of the coalition. And globally there are massive implications; markets have fallen and during this uncertain time it will continue to hit the already fragile global economy.