2nd Ld-Writethru: European Council chief unveils reform 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.

"I propose that member states discontinue the consideration of a draft legislative act where a number of national parliaments object to it on the grounds of subsidiarity, unless the concerns raised can be accommodated," he said.

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

According to the draft decision, the European Council could, by means of an implementing act, authorize the member state concerned to "limit the access of Union workers newly entering its labor market to in-work benefits for a total period of up to four years from the commencement of employment."

"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."

"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.

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.

Tusk said European affairs advisors and permanent representatives will meet on Friday to have the first discussion of the proposal.

"The clear objective is to have an agreement of all 28 [member states] at the February European Council. To succeed we will all need to compromise. To fail would be compromising our common future," he said. Enditem