here's gavin hewitt. >> this was a summit when the e.u. changed, a summit full of tension. the french president chipper. a british prime minister managing a clenched smile as brit tap's relationship with europe changed, too. france and germany had wanted to amend the e.u. treaties to impose tougher discipline over budgets. that needed british agreement, but the prime minister wanted safeguards in return. the arguments continued until 4:00 in the morning. >> good morning, everyone. sorry for keeping you up quite so long. i said before coming to brussels that if i couldn't get adequate safeguards for britain in a new european treaty, then i wouldn't agree to it. what is in the offer isn't in britain's interests, so i didn't agree to it. >> david cameron wanted to protect the u.k.'s financial services sector, but the french and germans were in no mood to make concessions to the british. >> david cameron asked for something that we thought was unacceptable, to exempt the u.k. from some regulations on financial services. we think a large part of the problem comes from the deregu

here's gavin hewitt. >> for a second day, senior french ministers have been criticizing britain and its economy. it has now led to an open row between the two countries. this was the french finance minister on national radio this morning. >> we don't have any lessons to give, but we don't want to be given any lessons either. the economic situation in great britain is very worrying, and from an economic standpoint, we prefer being french than british. >> stroll back to yesterday and it had been the turn of the governor of the bank of france who suggested that ratings agencies should start by downgrading britain. then the french prime minister in brazil said that the ratings agencies don't seem to have noticed, but britain is more indebted than us. it began to look like a coordinated attack on the british economy. later the french prime minister placed a call to nick clegg, the deputy prime minister, to, in his words, clear up misunderstandings. but nick clegg said the comments have been simply unacceptable and steps should be taken to calm the rhetoric. and later, number 10 downing stree

gavin hewitt said this report from paris. >> in a landmark speech, the french president said that europe would have to make crucial choices in the weeks ahead. he said that europe needs to be re-thought and redesigned. it deals of spoke about what would be unimaginable, life without the euro. >> the euro exists. it's that would have dramatic consequences for the french. it would make our debt unsustainable. the collapse of confidence would paralyze everything. the french would get before. we have no right to let such a disaster occur. >> president sarkozy said that europe could be swept away by the crisis if it does not get a grip. he said he would push to give the eu a new treaty to enforce strict budgetary discipline. >> france is fighting with germany for a new treaty, more disciplined, more solidarity, more responsibility, a true economic government. >> although there would be much greater control over national budgets, the french president said this would not be a march towards super nationality. he knows how sensitive this would be for the french people. he envisions clochard -- cl

gavin hewitt has details. >> at parliament, david cameron was the man you everybody seemed to want to talk about. his use of a veto to protect british interests has drawn comment from the french president and the germans chancellor. today, it was the turn of the president of the european commission to criticize the british for demanding safeguards. >> the united kingdom, in exchange for keeping its agreement, asked for a specific protocol on financial services which, as presented, was a risk to the integrity of internal market. this may compromise -- made compromise impossible. >> downing street denied the prime minister had any intention to undermine the single market, but the prevailing view was that britain was now on its own. >> in politics, there is one golden role -- you only walk away if you are sure the others will come after you to when you back. when you are invited at the table, either it is as a guest or otherwise you are part of the menu. >> one french member of the european parliament demanded britain be punished for acting selfishly. >> i think the british rebate is up

gavin hewitt has the latest. >> this was a summit when the e.u. change, full of tension. at the french president was chipper. the british prime minister managing a clenched smile as britain's relationship with europe changed, too. ifrance and germany had wanted o amend the treaty to impose tougher discipline over budgets. that needed british agreement, but the prime minister wanted safeguards in return. the arguments continued until 4:00 in the morning. >> good morning. at the sorry for keeping you up so long. i said before coming to brussels that if i could not get adequate safeguards for britain in a new european treaty, i would not agree to it. what is on offer is not in britain's interests, so i did not agree to it. >> david cameron wanted to protect the u.k.'s financial services sector, but the french and germans were in no mood to make concessions to the british. >> david cameron asked for something that we thought was unacceptable, to exempt the u.k. from some of regulations on financial services. we think a large part of the problem comes from the deregulation of