The government has just suffered an embarrassing defeat on the EU budget. The rebel amendment, which called for a cut rather than the real terms freeze David Cameron is proposing, passed by 307 votes to 294.
There are, I think, three significant consequences of tonight’s vote. First, it has been yet another reminder that David Cameron can barely control his party when it comes to Europe. We’re waiting for the precise number of Tory rebels tonight but it seems like about 50 MPs defied the whips. This means that if Labour is prepared to join with the Tory rebels, it can overturn the coalition’s majority.
This is the second lasting consequence of tonight, it will have strengthened the hand of those in the Labour camp, especially Ed Balls, who argue for more alliances of convenience with Tory Eurosceptics to defeat the Prime Minister.

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