Veto defense

British Prime Minister David Cameron returned from Brussels last week lauded as a hero by many of his party representatives but facing howls of derision from the opposition Labour Party, and even from coalition members, the Liberal Democrats.

In the House of Commons on Monday, the Conservative prime minister put up a forthright defense of his position taken at the two-day EU crisis summit, insisting he vetoed European Union treaty changes because he did not receive the safeguards he required for British interests. Cameron said he had negotiated in Brussels in "good faith" and that his demands were "modest, reasonable and relevant."

Opposition Labour leader Ed Miliband, however, accused Cameron of actually harming the national interest by isolating Britain in the European Union, rather than safeguarding it as he set out to do.

Miliband also called his rival's negotiating skills into question, insisting: "It is not a veto when something goes ahead without you. That's called losing."

Coalition divisions

Cameron's important speeches in the House of Commons are usually delivered with his deputy prime minister at his side, but not this time. Liberal Democrat leader Nick Clegg stayed away, sayings his presence would have been a "distraction."

But many political analysts are interpreting his move as a provocation and an indication that relations within the coalition government are souring.

Later Monday, Clegg gave a television interview, admitting "the prime minister and I do not agree on the outcome of the summit."

According to Ian Dunt, of the independent political website politics.co.uk, the "TV appearance gave the impression of disunity at the heart of government." The issue of Europe is a difficult one for the Liberal Democrats, however, which may explain their relatively muted performance in parliament as Cameron set out his position.

A Populus poll for the Times newspaper recorded 57 percent of respondents saying Cameron was right to use his veto in Brussels. In addition, 49 percent of people who voted for the Liberal Democrats in the last election also back Cameron.

Political conundrum

All three main parties now face complicated decisions when it comes to their policy on the European Union.

Cameron finds himself on the right side of public opinion and popular within his own party. However, the prime minister still claims to want Britain to remain an important part of the EU, so he may face problems from the electorate and his own MPs if he shows signs of backing away from the euro-skepticism that seems to be winning him support.

Clegg needs to impress upon his Liberal Democrat party members that he is pushing the pro-Europe line they favor. On the other hand he knows this is currently an unpopular line with voters, and the Liberal Democrats can hardly afford to lose more ground in the polls. If an election were to be forced in the near future, they could face obliteration as a party.

Miliband's Labour Party feel they have found an issue - EU policy - on which they can legitimately and successfully challenge the prime minister. But voters have not warmed to Miliband since he took over leadership of the party, and he cannot afford to alienate potential blocs of support.

Despite the loud, boisterous divisions between the three main parties, their three leaders currently agree, or say they agree, on one thing: Britain should remain part of the EU.

Business interests

Cameron set out for Brussels insisting he would protect the interests of the City of London. It's long been felt by the UK government that France, in particular, wants to trim the influence of UK financial services, and Cameron is keen to show he will not let that happen.

However, Cameron's veto did not actually gain the UK any safeguards for British business interests - it merely proved he was not willing to sign a deal without receiving them. His argument was potentially weakened by several business leaders telling the Guardian newspaper there are now fears the UK could lose a "leadership" position in some industries and become isolated from the EU, a key market.

Others, however, point out that European businesses will continue to follow the money and are unlikely to stop signing contracts with UK firms simply because Cameron and French President Nicolas Sarkozy are not getting along.

Author: Olly Barratt, London / glb
Editor: Martin Kuebler