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As part of Britain's renegotiation with the European Union, members states will have the power to use a so-called "red card" to block EU laws they deem unwanted. Following a meeting with EU officials, the mechanism will be set into place, a source from UK Prime Minister David Cameron's office reported.
European Council President Donald Tusk will publish a draft of the proposal to meet the demands set forth by Cameron's government, which will allow members of the 28-country bloc to demand changes or completely veto EU legislations if they manage a 55% majority. According to the proposal, members will be given three months during which they can object to new laws enforced by the union.
Leaders of countries from within the union will meet at a summit on 18 and 19 February to discuss the draft agreement and if accepted it will allow the referendum to be held by June 2016.
"This breakthrough will ensure that national parliaments' voices are heard loud and clear in Brussels," the source from 10 Downing said.
Britons have protested against the law-making powers ceded to Brussels as part of the current EU set-up.
The Vote Leave campaign, however, sees little strength to the proposed amendment and believes it will not do much to restore power to the UK. Vote Leave chief executive Matthew Elliott said: "These gimmicks have been ignored by the EU before and will be ignored again as they will not be in the EU treaty."
Along with the issue of Union laws, Cameron also plans to deal with problems related to competitiveness, closer integration within the eurozone, single currency area and immigration.
The PM has proposed that EU migrants be denied certain payments like in-work benefits until they have lived as a resident in the UK for a minimum of four years. Rejecting the idea as being "highly problematic", the Euro Commission recommended the UK use an "emergency break" for the period of four years following which the situation can be reviewed.