Britain's demand for special treatment for financial services at last week's EU summit would have harmed the union's single market, European Commission president Jose Manuel Barroso said today.
"The United Kingdom, in exchange for giving its agreement, asked for a specific protocol on financial services which, as presented, was a risk to the integrity of the internal market. This made compromise impossible," he said in a speech to the European Parliament.
He said that the result of the Brussels talks did not amount to a split in the EU between the 17 euro zone countries and the rest, describing Friday’s accord as “not an agreement at 17-plus, but an agreement at 27-minus”.
Addressing the European Parliament in Strasbourg, Mr Barroso said that talks dragged on until 5am on Friday not because of any dispute over the contents of the new fiscal compact but because of a row about whether the changes should be enshrined in the EU treaties or introduced by means of a new agreement between the eurozone states.
Mr Barroso said that he, European Council president Herman van Rompuy and euro group president Jean-Claude Juncker put forward a proposal for treaty change, which would have required the approval of all 27 EU members.
“As you know, one member state was opposed to amending the Lisbon Treaty,” Mr Barroso told MEPs.
“The United Kingdom, in exchange for giving its agreement, asked for a specific protocol on financial services which, as presented, was a risk to the integrity of the internal market.
“This made compromise impossible.
“All other heads of government were left with the choice between paying this price or moving ahead without the UK’s participation and accepting an internal agreement among them.”
Mr Barroso said that in search of compromise, he tabled a clause which made clear that the measures in the fiscal compact applied only to the eurozone and must not undermine the single market or permit any discrimination against non-euro states.
But he added: “Unfortunately, that compromise proved impossible and so it was not possible to have a solution that could allow all 27 member states to agree in the framework of current treaties.”
The Commission president told MEPs: “Fortunately, we have not seen a split in the EU between the 17 and the other 10. This was indeed the greatest risk ahead of the summit.
“This is not an agreement at 17-plus, but an agreement at 27-minus.
“Last week, most heads of state or government of the member states showed their willingness to move ahead with European integration towards a fiscal stability union. They showed that they want more Europe, not less.”
Reuters
