French PM hopes for deal with UK at EU summit, insists on conditions

PARIS: French Prime Minister Manuel Valls expressed hopes on Wednesday of striking a deal to keep Britain in the European Union at a summit of the bloc's leaders on Thursday and Friday in Brussels.

But, speaking to French lawmakers, he repeated that Paris would insist that any deal does not affect the functioning of the euro zone and of Europe's single market.

"Is a deal possible? We think so and we hope so, because a British exit would be a shock whose consequences for Europe are hard to imagine," Valls said. "It is in Europe's interest, in France's interest, in Britain's interest, for it to stay in the EU."

Proposals drafted by summit chairman Donald Tusk should pave the way for a solution that works for everyone, Valls said, while adding that there was still work to be done.

He said that "the euro zone cannot be deprived of the possibility to integrate more closely, because it needs to do so."

Another key point for France in the talks is to ensure the unity of Europe's single market, and in particular for financial services, as well as freedom of movement within the bloc, Valls said.

British Prime Minister David Cameron will discuss a final draft, expected from Tusk late on Wednesday, when he meets the other 27 EU leaders on Thursday evening.

Key issues unresolved include: concerns in eastern Europe that a deal to help Cameron cut immigration by barring low-paid EU migrant workers from British benefits will hurt their citizens; French insistence the City of London match euro zone regulation; efforts to ensure British exemptions from closer EU integration do not become more widespread.