The UK's decision to boycott the new EU fiscal pact leaves it poorly positioned to defend its economic interests and weakens like-minded countries from resisting statist policies from France and Germany. As a result, the EU will become less economically liberal. The fiscal pact creates an inner core of countries that will dominate decision making, limiting the UK's ability to influence economic policy. Additionally, the UK's veto weakened its allies by preventing them from governing the new rules and reduced the influence of institutions like the European Commission that its allies prefer. This isolation of the UK and weakening of its allies will make it more difficult for the UK to advance its ideas around boosting growth in Europe.