Britain's veto of EU fiscal pact heralds dangerous era of isolationism and protectionism

The European Union has been seriously fractured after Britain opted out of a critical treaty that will change the way the single market is regulated.

Britain's Prime Minister, David Cameron told reporters that he went to the European Summit looking for safeguards for companies in Britain but didn't get them. It was therefore not in Britain's interests, he said, to sign the new treaty.

But France and Germany are adamant that the other 26 members countries of the EU will push ahead with an agreement that now threatens to isolate Britain.

Read the special coverage on ABC News Online.

Here's my analysis of the fallout.