An historic rift within the European Union led to a long night of negotiations.<br/> But early on Friday EU leaders announced they had found a solution.<br/> The majority want tighter integration with stricter budget rules but Britain's prime minister dug his heels in.<br/> (SOUNDBITE) (French) FRENCH PRESIDENT NICOLAS SARKOZY SAYING:<br/> "David Cameron asked for something that we all thought was unacceptable: a protocol in the treaty that would allow the United Kingdom to be exempt from a certain number of regulations on financial services. We weren't able to accept that because we consider on the contrary that a good part of the worries of the world comes from the deregulation of financial services."<br/> Those countries within the euro will now work on an intergovernmental treaty that excludes Britain and Hungary.<br/> In his defence David Cameron said tension between those in and those out of the single currency is inevitable.<br/> (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON SAYING:<br/> "And so I think the idea of Europe being more of a network where you choose the organisations you join and you choose those organisations you don't join, is actually a way that Britain can get what we want and what we need."<br/> Germany's Angela Merkel was upbeat about the outcome saying the new agreement would bring stronger rules and more coherence in Europe.<br/> This is the eighth crisis summit this year as leaders fight to save the single currency.<br/> Lily Grimes, Reuters
