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International News Title: UK opts out of EU pact to deal with debt crisis There was some backslapping but few expressions of glee after 26 of the 27 European Union countries reached a tentative agreement Friday to impose binding limits on national budgets and borrowing, with stiff penalties for those who overspend. The sole EU country to reject the deal was Great Britain. German Chancellor Angela Merkel called the agreement "a great step toward a stable Europe" and a crucial part of the continuing political and monetary integration and reformation of Europe. But the accord's principal architect repeatedly pointed out Friday that the deal was no quick solution. It would be implemented "step-by-step," and that that would take several years, she said. One of the problems that was already apparent Friday was that at least eight of the countries that signed the new accord must also seek approval from their own parliaments - a process that is expected to take at least several months. However necessary such delays are, it is an open question whether such a languid timeline will satisfy those who have been clamouring for immediate relief for the struggling euro and strong financial measures to restore public confidence in the battered European economies. Markets in Asia, Europe and North America provided mixed signals Friday, with the New York Stock Exchange being among the most bullish. But the euro was down against the dollar. Perhaps ominously, three French banks had their credit ratings lowered for the second time this year. Speaking in Toronto, Finance Minister Jim Flaherty told reporters that Europe must do more to fix the eurozone, and that European countries must use their own resources before calling for assistance from the International Monetary Fund. "They've made progress in the last two days in Europe. I think they need to go farther. We think there needs to be monitoring of those countries that have sovereign debt issues that are critical," Reuters quoted him as saying. Lost in the political and media noise created by Britain's differences with its European partners, the EU also agreed Friday to inject as much as 1.5 trillion euros (about $2 trillion Cdn) into the financial markets. But only 200 billion euros of that money will be released immediately to help bail out Italy and Spain. The rest will be available over the next three years. When Polish Prime Minister Donald Tusk was asked Friday in Brussels if the euro were now safe from collapse, he spoke for millions of Europeans when he replied: "I'm not sure." Left unsaid by all the principals at Friday's meeting was that there will likely be more emergency economic summits in Europe's future. It was unclear what impact Britain's refusal of the 11th hour deal at an emergency meeting of EU leaders will have. Prime Minister David Cameron said he was not "frightened" that his country might be excluded from future European economic talks.
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