The very coalition that had been set up to rehabilitate what is the money-craving Eurozone collapsed last night as British Prime Minister, David Cameron, vetoed the European rescue package. The U.K does not use the Euro, and decided to opt out of the deal. This was not the first time that the British refused to become closer to the European states. An excellent example of this was given back in 1992, when the U.K refused to sign the Maastricht Treaty and as a result, did not become part of the European Union.
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| British Prime Minister David Cameron at the Europe Summit |
It now looks like as if the other 26 members of the Summit will agree to the accord, and while Britain did opt out, Labour and Liberal Democrats warn Britain is now dangerously isolated. It should be noted that Britain has 143 billion pounds in exports to Europe (more than the rest of the world combined). This alone makes the threat evident.
Cameron is blamed for caving into pressure by the right-wing in his party. "What is on offer isn't in Britain's interests, so I didn't agree to it", David Cameron stated at a briefing. However, one source close to the talks said that Cameron had "overplayed his hand".
This crisis did not go unnoticed as Asian markets fell Friday with the news that the talks at the Summit had been shattered.
- Tokyo fell 1.48%
- Hong Kong marked down 2.73%
- Shanghai fell 0.62%
- Seoul went down 1.97%
- and Sydney shed 1.82%
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