Britain may sue European countries against new EU grouping: Cameron

Britain is prepared to sue other European countries if the new financial agreement between 25 member states  threatened its national interest, prime minister David Cameron said today.

Cameron is facing pressure over the fact that Britain, along with Czech Republic will be denied use of joint institutions including the European Commission and the European Court of Justice which the group would be able to use. Last month, he had vetoed a new European treaty for greater fiscal integration between eurozone countries as it did not contain enough safeguards for UK's banking industry.

He today stressed that Britain would take robust action if the 25-member group used the institutions to act against the single market.

"I made clear we will watch this closely and if necessary we will take action, including legal action, if our national interests are threatened by misuse of the institutions," Cameron said.

He rejected suggestions his decision had left Britain at a disadvantage. Cameron however, was challenged by Labour leader Ed Miliband, who said he had watered down his original plan to block the group of 25 using EU institutions.

"With this Prime Minister, a veto is not for life, it's just for Christmas," Miliband told MPs.