Is Britain now isolated in Europe?

David Cameron has defended his decision to block an EU-wide treaty change to tackle the eurozone crisis, despite warnings it will leave the UK isolated.

It looks likely that all 26 other members of the European Union will instead agree to a new "accord" setting out tougher budget rules.

Labour said the UK would be left out of key decisions affecting its future.

But the PM said the UK remained a "full and very influential member" of Europe on the issues that mattered to it.

Gavin Hewitt reports.