Cameron's EU balancing act

The prime minister has secured a limit on the EU's budget increase, after a delicate balancing act in the face of diplomatic pressure from abroad and domestic anger from his own backbenches.

David Cameron played the result of the EU summit, with the increase down to 2.9% from six per cent, as a victory even though he had previously pushed for a complete freeze.

Many Tory backbenchers feel any increase in the EU budget while public spending cuts are hitting domestically is a step too far.

The issue of Europe has until now been kept at arm's length by the highest echelons of the government, to avoid potential splits both between the coalition partners and between the Conservative leadership and its backbench members.

The prime minister has promised to prevent any further constitutional change in Britain's relationship with the EU unless approved by referendum.

The possibility of an amendment to the Lisbon Treaty as part of plans to protect the eurozone from another financial crisis has been argued not to fall into this category by Mr Cameron, who insists any change would not affect Britain given it remains outside the euro.