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International News Title: David Cameron vows to reclaim EU powers amid looming Tory rebellion The Prime Minister is to demand more British control over employment and social laws in return for supporting a new European treaty to shore up the single currency. Although British taxpayers’ money will not be used for the new multi-trillion euro bail-out, it is expected to require a rewriting of EU treaties, which needs Britain’s backing and may prompt a referendum in this country. Mr Cameron’s “repatriation of powers” offer came as the Conservative leadership was making a last-ditch attempt to stop at least 60 Tory MPs voting for a referendum on leaving the European Union in the Commons today. Dozens of MPs were expected to reject the “olive branch” from the Prime Minister and vote against the Government, or abstain, in the biggest rebellion Mr Cameron has faced since entering No10. He has infuriated backbench MPs by enforcing a three-line whip on this evening’s backbench debate and vote, with at least two ministerial aides expected to resign in protest. The future of the EU is set to dominate both Westminster debate and the movements of the financial markets this week. Last night, Mr Cameron cancelled a visit to Japan and New Zealand so that he could attend further emergency talks on a euro rescue package in Brussels on Wednesday. Speaking following a meeting of European leaders last night, the Prime Minister said: “I don’t think this is the right time to legislate for an in/out referendum. This is the right time to sort out the eurozone’s problems, defend your national interest and look to the opportunities there may be in the future to repatriate powers back to Britain. Obviously the idea of some limited treaty change in the future might give us that opportunity.” It had been hoped that European leaders would be able to agree a bail-out for beleaguered economies and banks over the weekend. But any deal will not now be unveiled until at least Wednesday, prompting fears of a meltdown in the markets this week. Downing Street aides believed that a sharp fall in stock markets today would provide a “sobering moment” for MPs calling for a referendum on EU membership — a move which would be likely to trigger further uncertainty. There were also growing concerns that the problems undermining Greece could spread to Italy this week. Silvio Berlusconi, the Italian Prime Minister, yesterday held private talks with French and German leaders, who are pushing for further reforms. Related Articles Sarkozy tells Cameron: 'We’re sick of you telling us what to do' 23 Oct 2011 New euro 'empire' plot by Brussels 22 Oct 2011 Cameron: elements of strong eurozone package coming together 23 Oct 2011 European leaders are negotiating a multifaceted deal which is expected to see Greece go bankrupt and write off more than half its debts. Banks across the continent will also be lent about €100 billion (£87 billion) to boost their balance sheets, so that the impact of the Greek meltdown will not lead to another banking crisis. Other European countries are also expected to be allowed to borrow money from a central European facility at rates cheaper than they receive on the financial markets. These loans will effectively be underwritten by wealthier EU countries, primarily Germany. In return for the large rescue package, the German government is likely to insist on new legally-binding rules that would stop euro countries from borrowing beyond their means in future. Creating these rules would require a rewriting of EU treaties that would need to be endorsed by all countries. The relationship between members of the single currency and those, such as Britain, outside the arrangement was the subject of heated discussion at the weekend. Nicolas Sarkozy, the French President, pushed for greater euro-area integration but Mr Cameron is wary about decisions affecting Britain being taken without this country’s approval. Angela Merkel, the German Chancellor, said that it was “quite a discussion” which unexpectedly led to the prospect of a rewritten EU treaty being proposed. Guido Westerwelle, the German foreign minister, said: “We urgently need changes to the treaty so we can have a real stability union.” Herman Van Rompuy, the EU president, said: “We decided to explore the possibility of limited treaty change. The aim is deepening our economic convergence and strengthening economic discipline.” Mr Cameron has previously warned that the eurozone needs a “big bazooka” to tackle the crisis, which has threatened to push the global economy back into recession. Last night, the Prime Minister said: “I’ve argued that this crisis means that greater fiscal and economic integration of the eurozone is inevitable. But this must not be at the expense of Britain’s national interest. “I think we are beginning to see the elements of a strong package coming together. What is needed to help deal with the current uncertainty is a clear recapitalisation of Europe’s banks, and a good agreement was reached last night, we need to make sure we increase the scale of the European financial stability facility, and conversations are ongoing about that, and we need to make sure we deal decisively with the Greek situation.” Wednesday’s summit is increasingly being seen as a “make or break” moment for the single currency and the global economy. Alistair Darling, the former chancellor, said: “They better come up with a definitive answer on Wednesday, or we will be in real, real problems.” Mr Cameron warned that renegotiating the EU treaty may take many months or years. This means that Britain’s relationship with Europe may dominate political debate as MPs lobby for the return of powers to Westminster.
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