David Cameron vetoes EU-wide treaty change

A long night of drama and disagreement has finally led to a deal - but it is limited. The leaders of the 17 countries in the eurozone have accepted a plan which brings stricter controls on their economies.

But German hopes for a new treaty involving all countries in the European Union were scuppered, as Britain refused to go along with it. The French President Nicolas Sarkozy told reporters that David Cameron had demanded concessions on the protection of financial services that Germany and France could not grant.

Talks are now expected on an inter-governmental agreement between the euro states, plus as many as eight of the 10 others.

Mike Wooldridge reports.