By Marcus Leach

Despite David Cameron vetoing the EU treaty proposed by Sarkozy and Merkel the majority of member states have agreed to push on with a tax and budget pact aimed at tackling the mounting eurozone debt crisis.

It was hoped that all 27 EU member states would back the treaty, but David Cameron vetoed the pact and subsequently the union's treaty was dropped.

Prime Minister David Cameron had insisted on an exemption for the UK from some financial regulations.

However, 23 states have reached an accord which will see penalties applied for breaking any deficit rules.

"We wish them [eurozone states] well because we want everyone to sort out their problems because we all need that [economic] growth," Mr Cameron said.

"But at the end of the day I made my judgment that it was not in Britain's interests [to take part]. I effectively wielded the veto."

Due to Cameron's veto the treaty will now not be applied, but instead new rules on spending and budgets will be backed by a seperate treaty between governments.

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