EU president denies delivering Cameron ultimatum over euro

Commission President Jose Manuel Barroso held talks with the Prime Minister in Brussels last week and, according to some reports, made clear his frustration over what is seen as a British bid to play EU powerbroker from outside the eurozone.

Mr Cameron is accused of wanting the best of both worlds – no responsibility for eurozone bailouts and exemptions from EU financial rules which might harm the City of London.

The Prime Minister is currently under pressure from fellow members of the Tory party to capitalise on any forthcoming EU Treaty change designed to help fix the eurozone to seek the repatriation of powers to London.

It was reported yesterday, in the run-up to another crucial EU summit next month, that Mr Barroso had told Mr Cameron to make a choice between defending the City of London and maintaining its presence within the EU.

However last night the commission flatly denied the reports of the conversation.

In a statement issued in Brussels, a spokesman said: “We totally refute the claim made today on the front page of The Times.

“President Barroso has repeatedly called for strong financial centres in Europe, including in the City of London.

“President Barroso did not say to Prime Minister Cameron that he must choose between protecting the City of London and influence in the European Union.”

Mr Barroso this week unveiled long-awaited plans to curb the excesses of some eurozone governments which has led to a financial crisis and introduce common “stability bonds” to replace national debt issuance.

Mr Cameron has been pressing hard for completion of the single market in financial services, something Mr Barroso has also been pushing for in recent weeks.

After last week’s Brussels meeting, the pair said: “President Barroso and Prime Minister Cameron agreed on the importance of prioritising the decisive action needed to ensure the stability of the euro area as well as fast-tracking measures to stimulate growth and jobs.

“They both underlined the central importance of further developing the single market to deliver its full growth potential in the interests of businesses and citizens across the Union and especially to help small and medium-sized enterprises.”

Mr Cameron’s official spokesman said in a statement: “There is a planned European Council discussion coming up on December 8 and 9 that will look at the issue of new governance arrangements for the eurozone.

“One of the options being considered is limited treaty change and we have no doubt that many countries will come forward with proposals and views.

“There will be a paper from (Council president) Herman van Rompuy and it sounds as if there will be proposals from the French and Germans.”

He added: “The European Council will be a first discussion on those governance arrangements and the proposals and then there will be further discussion in the coming months. Primarily, what is being looked at are the rules for the eurozone – how does the eurozone organise itself, how does it organise fiscal policy in particular, given what has happened in the past with the Security and Growth Pact?

“We are keen to ensure that those discussions don’t result in anything which would undermine the single market. We will think very carefully about how we approach the negotiation and look at opportunities for furthering our national interest in any negotiation that takes place.”