Cameron, Tusk fail to strike deal on British reform demands

European Council President Donald Tusk and British Prime Minister David Cameron have failed to strike a deal aimed at keeping the UK in the EU, but agreed to more talks for another day.

Both sides had hoped the dinner meeting would close the gap over Britain's demand for more control over immigration. But Tusk emerged from 10 Downing St and told reporters there was "no deal."

Cameron tweeted that it had been a "good meeting" and said late yesterday the two men had agreed on "another 24 hours of talks" before proposals were published.

Before the meeting, Tusk had said that if the two men reached an agreement, he would present it to the 27 other EU member states today.

After the two politicians failed to resolve their disagreements over a distinctively British dinner of smoked salmon, fillet of beef and fruit crumble, Tusk tweeted that "intensive work" over the next day would be crucial.

Britain and the EU have been hoping to reach a final pact at a February 18-19 summit -- an increasingly unlikely prospect unless there is quick progress.

Welfare benefits have become the key issue, and main sticking point, in Britain's negotiations with the rest of the EU before a UK referendum on whether to remain in the bloc. The referendum must be held by next year and could come as early as June.

Cameron wants to limit British welfare benefits to migrants from other EU countries, but other EU leaders say that undermines the right of EU citizens to work and live freely among member nations.

Britain's Conservative government says hundreds of thousands of people from Eastern Europe who have flocked to the UK are straining schools, hospitals and social services.

On Friday, top EU officials offered Britain a mechanism known as an "emergency brake" that would let the UK temporarily limit tax credits -- given to workers in low-paid jobs -- and housing benefit to immigrants if the country's welfare system comes under pressure.

The proposal could satisfy Britain's goal of regaining some control over immigration and other countries' desire to maintain the principle of free movement.

Cameron said the proposal was positive, but didn't go far enough. Britain wants the "emergency brake" to take effect immediately after a British vote to stay in the EU, and last for as long as it takes to reduce the level of migration. Cameron's initial proposal was for a four-year halt on benefits to new EU immigrants.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel