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British
Prime Minister David Cameron faced searching questions Saturday over
his veto of a new EU treaty to solve the eurozone crisis, despite
receiving a hero's welcome from his party's lawmakers.
Cameron
hosted a dinner for a number of Conservative MPs on Friday night at his
country residence after he returned from a summit in Brussels where he
took the historic step, his Downing Street office told AFP.
Finance
minister George Osborne dismissed suggestions that Britain would now
lose influence within the EU, saying Cameron had to protect Britain's
interests, including the City of London financial services hub.
Cameron's
veto torpedoed a new EU treaty aimed at saving the eurozone, but the
other 26 EU states looked set to join a "new fiscal compact", proposed
by France and Germany, to resolve the crisis.
"We have protected
Britain's financial services and manufacturing companies ... from the
development of eurozone integration spilling over and affecting non-euro
members of the EU," Osborne told BBC Radio.
"This is not about
letting the City off regulation, this is about the right regulation for a
very large financial centre, which is much, much larger than any
financial centre in France or Germany or any other country of the EU."
Downing
Street said there was a "pre-planned meeting" for Conservative
lawmakers late Friday at Chequers, the prime minister's official country
house outside London, but gave no further details
The BBC
reported there were around 30 lawmakers present, including leading
eurosceptic MP Andrew Rosindell, who had urged Cameron in parliament
last week to show "bulldog spirit" at the Brussels summit.
Cameron was "very relaxed" and the mood was "extremely positive", Rosindell was quoted as saying by the BBC.
But
former Conservative cabinet minister Michael Heseltine, a key figure
under Margaret Thatcher in the 1980s, warned eurosceptics that Britain
could not protect its interests by walking away from the EU.
He
backed Cameron's use of the veto but added: "In saying he wanted to
protect the interests of the City, there is no way you can protect those
interests by floating off into the Atlantic, frankly."
He said there would now have to be a discussion about the City's relationship with the eurozone.
There
were also tensions with some Liberal Democrats, the junior partners in
the coalition government, although Deputy Prime Minister and Lib Dem
leader Nick Clegg insisted the coalition was "united" on Cameron's
demands.
Eurosceptic newspapers hailed Cameron's decision, with
the mass-selling Daily Mail describing it as "The Day He Put Britain
First".
Rupert Murdoch's Sun tabloid put a picture of Cameron
dressed as wartime leader Winston Churchill on its front page with the
defiant headline "Up Eurs -- Bulldog PM sticks up for Britain".
But other newspapers warned London was now dangerously isolated.
"The
EU leaves Britain", the Independent said in a headline, while the
left-leaning Guardian said "Cameron cuts UK adrift" and accused him of
acting not for the good of the economy but to appease eurosceptics.
The
Financial Times and The Economist criticised Cameron's decision, saying
it could lead to the City of London losing business to eurozone rivals
Frankfurt and Paris.
"Mr Cameron must now find a way to restore
the UK's influence over the single market," the FT said in an editorial.
"One thing is clear: an empty chair resolves nothing."
Enlarge PhotoLiberal Democrat leader and Deputy Prime Minister Nick Clegg addresses his party's …
Enlarge PhotoPrime Minister David Cameron, seen here, faced searching questions Saturday over …
British
Prime Minister David Cameron faced searching questions Saturday over
his veto of a new EU treaty to solve the eurozone crisis, despite
receiving a hero's welcome from his party's lawmakers.
Cameron
hosted a dinner for a number of Conservative MPs on Friday night at his
country residence after he returned from a summit in Brussels where he
took the historic step, his Downing Street office told AFP.
Finance
minister George Osborne dismissed suggestions that Britain would now
lose influence within the EU, saying Cameron had to protect Britain's
interests, including the City of London financial services hub.
Cameron's
veto torpedoed a new EU treaty aimed at saving the eurozone, but the
other 26 EU states looked set to join a "new fiscal compact", proposed
by France and Germany, to resolve the crisis.
"We have protected
Britain's financial services and manufacturing companies ... from the
development of eurozone integration spilling over and affecting non-euro
members of the EU," Osborne told BBC Radio.
"This is not about
letting the City off regulation, this is about the right regulation for a
very large financial centre, which is much, much larger than any
financial centre in France or Germany or any other country of the EU."
Downing
Street said there was a "pre-planned meeting" for Conservative
lawmakers late Friday at Chequers, the prime minister's official country
house outside London, but gave no further details
The BBC
reported there were around 30 lawmakers present, including leading
eurosceptic MP Andrew Rosindell, who had urged Cameron in parliament
last week to show "bulldog spirit" at the Brussels summit.
Cameron was "very relaxed" and the mood was "extremely positive", Rosindell was quoted as saying by the BBC.
But
former Conservative cabinet minister Michael Heseltine, a key figure
under Margaret Thatcher in the 1980s, warned eurosceptics that Britain
could not protect its interests by walking away from the EU.
He
backed Cameron's use of the veto but added: "In saying he wanted to
protect the interests of the City, there is no way you can protect those
interests by floating off into the Atlantic, frankly."
He said there would now have to be a discussion about the City's relationship with the eurozone.
There
were also tensions with some Liberal Democrats, the junior partners in
the coalition government, although Deputy Prime Minister and Lib Dem
leader Nick Clegg insisted the coalition was "united" on Cameron's
demands.
Eurosceptic newspapers hailed Cameron's decision, with
the mass-selling Daily Mail describing it as "The Day He Put Britain
First".
Rupert Murdoch's Sun tabloid put a picture of Cameron
dressed as wartime leader Winston Churchill on its front page with the
defiant headline "Up Eurs -- Bulldog PM sticks up for Britain".
But other newspapers warned London was now dangerously isolated.
"The
EU leaves Britain", the Independent said in a headline, while the
left-leaning Guardian said "Cameron cuts UK adrift" and accused him of
acting not for the good of the economy but to appease eurosceptics.
The
Financial Times and The Economist criticised Cameron's decision, saying
it could lead to the City of London losing business to eurozone rivals
Frankfurt and Paris.
"Mr Cameron must now find a way to restore
the UK's influence over the single market," the FT said in an editorial.
"One thing is clear: an empty chair resolves nothing."