Markets expected to react badly to EU move

Britain's Prime Minister David Cameron will address the House of Commons today to explain his decision to veto a new European Union treaty.

A deal to strengthen economic governance was signed off on Friday in Brussels, with Britain the only one to reject the proposal.

Deputy Prime Minister, Nick Clegg, has said the move was "bad for Britain" and insists he is "bitterly disappointed" in Mr Cameron.

Meanwhile, EU leaders' eyes will be on the markets this week, to see their verdict on the latest effort to halt the eurozone debt crisis.

Nick Bullman, founder of Check Risk, has said he does not expect the markets to show much faith in this latest plan.

Mr Bullman said: "I would not be surprised if markets react very poorly indeed over the next coming months because March is just too far away, they won't have all the pieces in place and meanwhile Europe is burning.

"The situation is being fanned by cold winds that are coming, in terms of recession next year, and you really do get he sense that they haven't actually faced into the problems at all."