Home Secretary Theresa May today inflamed Coalition tensions by blocking 130 separate measures designed to harmonise policing and justice laws around the European Union.
In a move that delighted many Conservative backbenchers she used a Commons statement to declare Britain will not rush over deciding which of the measures, including controversial European arrest warrants, it might choose to adopt in 2014.
It follows David Cameron's announcement made three weeks ago that he will fight for the repatriation of powers lost to Brussels.
In another sign that the Conservatives are swinging to a more openly eurosceptic position, a string of senior Cabinet ministers, led by Education Secretary Michael Gove, have signalled they are willing to use the threat of quitting the EU altogether in order to negotiate a better overall relationship.
Sources say the Prime Minister will go into battle at a dinner in Brussels with EU leaders this Thursday to protect the City from a financial transactions tax or anti-competitive regulation, making clear that he would use his veto if necessary.
The louder euro-sceptic noises from the Tories have dismayed Nick Clegg’s Liberal Democrats, who today insisted that they will help decide which of the Euro-justice measures Mrs May finally agrees over the next two years.
The arrest warrant system is particularly contentious, with Tory opponents arguing it has led to British citizens facing unfair trials abroad.
However, Mr Clegg says it helped return runaway teacher Jeremy Forrest to the UK and could be vital in bringing criminals to justice.
A senior Lib-Dem source said the Coalition parties were “not even close” to an agreement. “They won’t be able to say that we are definitely opting out... until we are a lot closer to agreement,” he said.
But Dominic Raab, one of 100 Tory MPs who asked for the move in a letter to the premier earlier this year, welcomed it.
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“Given rising demand for Britain to renegotiate its wider relationship with the EU, this is a test for them as much as it is for us,” he said.
Mr Cameron is now making clear he is willing to play hardball with the EU to renegotiate Britain’s relationship. The Prime Minister recently said he would veto the next budget if it was excessive and has suggested a referendum is likely on the next big treaty.
