As expected, the European Council on 24/25 March agreed on “a comprehensive package of measures to strengthen EU economic governance and ensure the stability of the euro area”, including the Euro Plus Pact, previously referred to as the ‘Pact for the Euro’ and the ‘Competitiveness Pact’. The European Council adopted the draft decision amending the Treaty to set up the future European Stability Mechanism (ESM). Angela Merkel was able to renegotiate the terms of European Stability Mechanism (ESM) recently agreed by the eurozone finance ministers. There was no agreement on expanding the size of the European Financial Stability Facility (EFSF). That decision has been postponed until June. There was, therefore, a lot of room for negotiations and the Prime Minister should have sought a better deal for the UK.