France plots eurozone 'breakaway group’

The Telegraph:  France is drawing up plans to create a breakaway organisation of eurozone countries with its own treaty, parliament and headquarters – a move that could significantly undermine the existing European Union.

The proposal would see a formal "union within a union" created, but would lead to a significant deterioration in Britain's influence in Europe.

David Cameron is drawing up urgent plans to stop Britain being "railroaded" into agreeing to decisions taken by the new eurozone bloc.

France and Germany are understood to want to strengthen the union between eurozone countries with new taxes and legal measures to stop nations borrowing and spending too much in future.

Weaker countries such as Greece could even be barred from the new eurozone, under radical suggestions from some of those involved in discussions over the plan.

It comes amid growing concerns that France could be the next nation to become embroiled in the single currency crisis.