Calls to change treaty deepen Cameron’s Eurosceptic troubles

After emergency talks at the Elysee Palace in Paris, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they wanted change to be carried out by all 27 member states if possible – or at least the 17 eurozone countries.

The aim would be to allow far tougher rules and sanctions governing the eurozone in future to reassure markets about the euro’s long-term stability.

Downing Street insisted that the scale of the proposal – to be put to an EU summit later this week – did not amount to change warranting a referendum in the UK.

Deputy Prime Minister Nick Clegg said as much at the weekend, insisting a referendum was only needed if treaty change meant giving up more UK sovereignty to Brussels.

But Work and Pensions Secretary Iain Duncan Smith sided with the Eurosceptic Right in the Tory Party by suggesting that the impact from any treaty change would demand a national vote.

“The Prime Minister has always been clear, if there are substantial changes that affect Britain’s position, then he would go for a referendum because that’s what we said to the British public we would do,” said Mr Duncan Smith.

But Mr Cameron insisted nothing had changed to justify such a move. He said: “Clearly, there are negotiations going on in Europe. If there is a treaty at the level of 27, and if that passed powers from Britain to Brussels, there would be a referendum.”

But he made clear he did not expect any treaty change which would be significant enough to require a referendum, adding: “We have legislated now so that it is impossible for a British government to pass power from Britain to Brussels without asking the British people in a referendum first.

“As Prime Minister I am not intending to pass any powers from Britain to Brussels, so I don’t think the issue will arise.”

Leading Tory eurosceptic Bill Cash insisted: “This is a major treaty change whether it is for the eurozone-17 or the EU-27 because it fundamentally changes the relationship of Britain to the EU.

“Ideally the treaty should be vetoed but if the Government is determined to persist then it must hold a referendum.”

He said the proposed treaty change would pave the way for a “fiscal union” of the 17 eurozone countries, undermining the single market and destabilising the City of London. It amounted to “a bid for political union” and “the British people whose lives are affected must be allowed to have their say”.

UK Independence Party leader Nigel Farage said: “If all member states are to implement treaty changes, then David Cameron must give the people of the UK the referendum he promised. Failure to do so will see not only a Tory backbench revolt, but a rebellion at the ballot box.

“The Prime Minister must use this opportunity to finally let the people of the country have their say on the UK’s future membership of the EU.”

The Paris talks marked the start of a week of intense efforts to settle a eurozone stability deal to convince markets once and for all that the single currency can survive the current economic turmoil. The key plan is to toughen eurozone checks and balances – something lawyers say will need treaty change.

Mr Sarkozy said talks on a new treaty should be completed by March, allowing the swift introduction of automatic penalties for eurozone countries breaching debt and deficit thresholds, and closer-than-ever monitoring by Brussels of eurozone economic plans. He described the new unity with Germany’s Chancellor Merkel as “a forced march toward re-establishing confidence in the eurozone”.

Coupled with fresh austerity measures in Italy and Ireland, the hope is that the 27 EU leaders can agree the details of the plan at their summit on Thursday and Friday.

As economy threatens to implode why aren’t our MPs talking about it? Page 11.