Veto threat unless City of London is not undermined by plan to forge fiscal union in eurozone.
David Cameron looked isolated last night as other European Union leaders rebuffed his demand for special safeguards for Britain in return for approving a deal to rescue the euro.
As a make-or-break EU summit got under way in Brussels, the Prime Minister repeated his threat to veto any agreement to forge a "fiscal union" in the eurozone if it undermined the City of London.
Several countries accused Britain of overplaying its hand. They doubted that Mr Cameron would risk scuppering their moves to end the euro turmoil, and warned that if he did kill off an agreement among all 27 EU members, the 17 eurozone nations would merely do a deal among themselves.
A 45-minute meeting between Mr Cameron, the German Chancellor Angela Merkel and the French President Nicolas Sarkozy before the full summit failed to break the deadlock.
The Prime Minister warned that, unless he returns from Brussels with concessions, Tory Eurosceptics could defeat a Bill to set up a permanent bailout mechanism for the euro which is due to be approved by Parliament next year.
