EU-UK deal reached in marathon talks

EU leaders have reached a deal on keeping the UK in the bloc after marathon talks in Brussels.

"Deal. Unanimous support for new settlement for #UKinEU," EU Council chief Donald Tusk i tweeted on Friday night (19 February), shortly after leaders met for an informal dinner on the latest proposals.

Minutes later the Lithuanian president Dalia Grybauskaite i tweeted: "Agreement #UKinEU done. Drama over."

The final text, put together by EU Council chief Donald Tusk and European Commission president Jean-Claude Juncker i is meant to address the issues raised by British prime minister David Cameron i for a reformed EU membership.

It will form the basis of a UK referendum on EU membership, possibly in June.

The agreement came after two days of intensive bilateral talks, which delayed plans to hold a joint “English breakfast” into an "English lunch" and, eventually, the leaders' dinner.

The deal clears up all outstanding issues in the EU-UK talks, such as restricting access to in-work benefits for EU workers in UK and curbing child benefit.

It also contains British safeguards on eurozone governance, a re-interpretation of the phrase "ever closer union" in the EU treaty, and incorporates pieces of the UK deal in a future treaty change.

On the controversial issue of curbing in-work benefits for EU workers in the UK, the mechanism can be applied for seven years, without the possiblity to renew.

The UK originally wanted 13 years. But eastern European countries opposed the longer period, originally proposing a five-year duration, later offering the seven year deal.

In a major win for the UK over France, just one country will be sufficient to pull the emergency “brake” on eurozone issues.

The brake can be applied if that member state believes a decision by the 19-member euro club might endanger its national interests.

France had wanted a quorum of several states to use the brake, which delays potential eurozone decisions.

On cutting benefits to children of EU workers who live in Britain, but who’s children don't, curbs will only apply to new claims.

But the text, leaked by the Financial Times, says that from 2020 "all member states may extend indexation of child benefit claims already exported by EU workers," meaning the tool will be available for all from 2020.

A clause in the deal also says the offer is null if British voters decide to leave the bloc.

Meanwhile, Cameron got an easy way out of the phrase others interpret as a political commitment to further EU integration.

The deal says the EU will “make it clear that the references to ever closer union do not apply to the United Kingdom" and that this will be incorporated in the EU treaty in the future.

"I have negotiated a deal to give the UK special status in the EU. I will be recommending it to Cabinet tomorrow," Cameron tweeted shortly after the deal was reached.

"UK will ... never be part of a European superstate" he also tweeted.