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UK 'made compromise impossible'

The President of the European Council, Herman Van Rompuy, in Brussels, 9 DecemberMr Van Rompuy was speaking to MEPs

The President of the European Council, Herman Van Rompuy, has said he hopes a new fiscal deal will be signed by most EU states by early March.

He was reporting to the European Parliament in Strasbourg on last week's EU summit, which discussed deeper economic integration in the eurozone.

The UK vetoed a new treaty for the 27-member EU, arguing it had to protect Britain's financial services industry.

But at least 23 other EU states agreed to forge ahead with deeper ties.

They envisage an intergovernmental treaty, or "compact", on stricter fiscal rules.

"Early March at the latest, this fiscal compact treaty will be signed," Mr Van Rompuy said.

The fiscal compact is designed to allow closer monitoring of countries' spending, in order to prevent a repeat of the eurozone's current debt crisis.

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