1st Ld: European Council chief unveils proposals to keep Britain in EU

European Council President Donald Tusk here on Tuesday unveiled his proposals to retain Britain's membership in the European Union.

According to a letter by Tusk to the members of the European Council, the proposal included the four areas of economic governance, competitiveness, sovereignty, and social benefits and free movement.

"We need to fully respect the current treaties, in particular the principles of freedom of movement and non-discrimination. Therefore, the proposed solution to address the UK's concerns builds on the clarification of the interpretation of current rules, including a draft commission declaration on a number of issues relating to better fighting abuse of free movement," Tusk said in the letter.

Also on Tuesday, the EU side unveiled a draft decision of the heads of state or government concerning British referendum issue.

"The draft decision notes, in particular, the Commission's intention to propose changes to EU legislation as regards the export of child benefits and the creation of a safeguard mechanism to respond to exceptional situations of inflow of workers from other member states," said Tusk, adding that the approach, as well as the exact duration of the application of such a mechanism "need to be further discussed at our level."

Concerning economic governance, Tusk said that the draft decision of the heads set out principles to ensure mutual respect between the member states taking part in further deepening of the economic and monetary union and those which do not.

However, Tusk said the respect "cannot constitute a veto nor delay urgent decisions."

"To my mind, it goes really far in addressing all the concerns raised by Prime Minister Cameron. The line I did not cross, however, were the principles on which the European project is founded," said Tusk. Enditem