The British Prime Minister’s being blamed for the collapse of attempts to agree a new Europe-wide treaty to deal with the economic crisis in the Eurozone.
It’s after a long night of talks in Brussels – which are due to resume today.
The French President Nicolas Sarkozy says his demands for concessions to protect Britain’s financial sector were "unacceptable".
France and Germany say they will now pursue a separate treaty.
David Cameron says the UK could not accept the deal – as the safeguards he had demanded were not on offer.
However some decisions were reached at the talks overnight.
Leaders agreed that the permanent bailout fund, the ESM would be capped at 500 billion euro when it comes into effect next summer.
EU member states are also signed up to providing 200 billion euro in loans to the IMF to help the fund tackle the debt crisis.
150 billion of that will come from Eurozone countries.
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