The European Union moved a step closer to a new treaty giving the eurozone greater fiscal integration over the weekend after Chancellor George Osborne said a new treaty was likely in the next two years.
The new treaty would aim to strengthen fiscal integration in the eurozone area, which has been rocked by some members' crippling sovereign debt.
"It's on the cards that a treaty change may be proposed," Osborne said on the sidelines of the weekend meeting of finance ministers from the Group of Seven leading economies.
There is a "remorseless logic from monetary union to fiscal union and it's in Britain's interests that the eurozone is stable," he said.
Osborne indicated the UK would support a new treaty - which requires ratification from all 27 EU states to take effect - but said he had told the other finance ministers Britain's interests must first be protected.
"It's crucial that Britain's interests on financial services, on the single market, on competition are protected, that we're not outvoted by the eurozone, that there is not an in-built eurozone caucus into the system," Osborne said.
Osborne's backing for a new treaty is a break from many in his Conservative party's strong skepticism on the euro and to transferring any further power to the EU.
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019