What is the deal?
Cameron's veto of the European initiative was not really a veto. As critics have pointed out, vetoes stop the process in question. In Cameron's case, the process simply took a new form, shrugged its shoulders and carried on anyway. The form is that of an intergovernmental treaty. While there is still a lot of uncertainty around it, it is likely to impose rules on all 26 EU members — not just the 17 countries which use the euro.
The treaty will hold members to strict new budgetary rules, including a cap of 0.5% of GDP on their annual structural deficits, a requirement for them to keep public deficits under three per cent of GDP and a rule that insists they must submit their budgets for European approval.
While it originally appeared that just the eurozone countries would be affected by the rules, it is now likely they will be imposed on all the EU countries. Most of the non-eurozone members have plans to join the euro eventually and they want to maintain theirRead More »from Everything you need to know about the eurozone deal in five minutes