The pound rose on the news of a deal after some 32 hours of negotiating that saw prolonged haggling over Cameron’s demands for welfare curbs, legal changes to the EU treaties and attempts to protect the financial industry in the City of London, according to a Bloomberg report.
The pound rose for a second day against the dollar, gaining 0.3 percent to $1.4379 at 4:32 p.m. in New York. That’s up from a decline of as much as 0.6 percent earlier in the day.
The focus will rapidly shift to the domestic campaign that will determine the U.K.’s future in the EU.
“A deal to give the U.K. special status within the EU,” Cameron told reporters after the summit. “This is enough for me to recommend that the U.K. remain in the EU, keeping the best of both worlds.”
The U.K. won a seven-year “emergency-brake” period in which it can impose welfare curbs on other EU citizens arriving to work in Britain, according to the final draft of an EU communique prepared for the dinner. One of the most contentious of his demands, Cameron had surprised his counterparts by pressing for 13 years; the original proposal had been for five years. Each worker falling into this category would have their benefits phased in for over four years.
The draft text obliges the U.K.’s financial industry to abide by what the EU calls its “single rule-book” — the common rules for banks and credit institutions in every country. However, it gives the U.K. some flexibility, stating that lenders outside the euro area may be able to have “specific provisions,” giving Cameron the ability to claim a shield for the British financial industry.
Cameron will now present the deal to his cabinet in London at a meeting at 10 a.m. on Saturday and recommend a vote to stay in the EU. “I have negotiated a deal to give the U.K. special status in the EU,” he said on Twitter.