Prime minister David Cameron’s refusal to back European Union treaty changes has caused further uncertainty in Europe.
Cameron is understood to have blocked Europe-wide treaty changes after failing to win concessions for the financial services industry.
A joint statement by the European heads of government said the proposals will now be adopted through an international agreement and will seek to incoprporate those into European Union treaties “as soon as possible”.
The UK was joined by Hungary in rejecting the deal, while Sweden and the Czech Republic will consult their parliaments.
German chancellor Angela Merkel and French leader Nicolas Sarkozy have enthusiastically backed plans in recent months for a financial transactions tax, or ‘Robin Hood’ tax, which has met stiff opposition from the UK.
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