Britain has rejected proposed amendments to the EU treaty, making an agreement by all 27 member states impossible.
British Prime Minister David Cameron refused to sign off on the changes after failing to get concessions and opt-out clauses for the UK.
The sticking points involved banking and financial regulations that Cameron felt would negatively affect the City of London.
“What is on offer is not in Britain’s interest, so I didn’t agree to it,” explained Cameron.
“We are never going to join the euro. We are never going to give up the sort of sovereignty that these countries are having to give up in order to enter a fiscal union. So, in some ways, the fact they are going to do this in a separate treaty without distorting the European Union treaty itself, in many ways, given that we could not get those safeguards, perhaps it is a better outcome,” he said.
After a series of disagreements with French President Nicolas Sarkozy, and under pressure from eurosceptics at home, Cameron used the UK’s veto to end any chance of changing the treaty.