David Cameron under fire from MPs over Europe Mr Cameron's dramatic use of the veto in the early hours of an EU summit in Brussels in December saw him cheered by his party's backbenchers and handed the Tories a swift opinion poll bounce. However, the leaked report has emerged after one of Mr Cameron's toughest weeks in office - with the country gripped by a panic over petrol supplies and ongoing post-Budgets rows over the tax of the rich, pensioners and pasties. At the Brussels summit before Christmas, Mr Cameron argued it would be wrong for the 25 states seeking to integrate more closely on tax and public spending to use the European Commission and other institution to police their new union. However, by January, the Prime Minister said he would not object to the institutions being used to draw up and enforce the new treaty. Amid further confusion, in a letter to the EU Council in late February cited by the committee, the Government "reserved" its position on whether the European's institutions should be used to enforce the new pact. The committee argues that Mr Cameron was right to use the veto, but suggests that the Prime Minister did so for the wrong reasons. When Mr Cameron blocked the new treaty he emphasised that he had been unable to secure protection for the City of London from new EU taxes and regulations. However, the Committee argues that legal basis of the Treaty is dubious and provided a more compelling case for exercising the veto. "The conduct of this treaty provides further and ever more disturbing evidence of the European Union dangerously ignoring its own precepts for political ends," the draft reads. The committee's report is sceptical that the new treaty will resolve the eurozone crisis. It fears that the treaty will only provide "temporary" comfort to world markets and prove impossible to enforce. It notes that the Stability and Growth Pact, which set rules over how much eurozone members could borrow and spend in the early years of the single currency, was "violated without further action." After several months of calm, anxiety has crept back into bond markets over the vast debts of some European countries. Yields on Spanish and Italian debt has started to rise again, even though the Madrid government on Friday passed a new set of €27billion (£22.2billion) austerity cuts. At a meeting in Copenhagen on Friday eurozone finance ministers agreed to increase the single currency's bailout fund from €500billion to €700billion in the hope of calming financial markets. However, many observers still expect there will be renewed turbulence in the coming weeks. Europe remains a danger area for the Prime Minister, with back benchers continuing to demand a tougher eurosceptic stance from Mr Cameron. A key test in the coming months will be a parliamentary vote on whether Britain should deploy more taxpayers" money to the International Monetary Fund to ease the eurozone debt crisis. The Commons last summer agreed to give the IMF more funds, but the motion was passed by only 274 votes to 246, with 32 backbench Tories rebelling. Christine Lagarde, the head of the IMF, has called for Britain and other countries to contribute at least $500billion (£312billion). Labour have signalled they may oppose the move and with euro-scepticism growing in Tory circles, the issue could lead to the Government's first defeat in the Commons. It is expected that George Osborne, the chancellor, will call for a vote in either May or June. One Tory eurosceptic MP: "I cannot see the Government getting this through Parliament. Giving more money to the IMF is throwing good money after bad and far more of our party now realise that.