Cameron and Sarkozy
David Cameron and Nicolas Sarkozy

Britain refused Friday morning to join a deal that aims at resolving the EU debt crisis and stabilising the currency.

The BBC has reported that Prime Minister David Cameron refused to join the intergovernmental accord after 10 hours of talks in Brussels, as he felt the deal was not in the UK's interest.

Hungary too is likely to stay out of the deal, while the Czech Republic and Sweden will have to secure the approval of their parliaments before endorsing the deal, the report has said.

According to the BBC, French President Nicolas Sarkozy has said the prospects of a full treaty have hit a roadblock following "unacceptable" British demands for exemptions over financial services, a vital part of the UK economy. "A full accord of all 27 EU members wasn't possible, given the position of our British friends," Sarkozy said.

A report in the Telegraph has added that Cameron and Sarkozy clashed with angry words at the summit before the treaty was blocked.

The BBC has quoted the French president as saying: "We want the eurozone countries to come together and solve their problems. But we should only allow that to happen within the EU treaties if there are proper protections for the single market, for other key British interests.

"Without those safeguards it is better not to have a treaty within a treaty, but have those countries make their arrangements separately. It was a tough decision but the right one."