Shadow chancellor Ed Balls has dismissed a deal on euro debt as "not a big step forward".
He insisted that the policies pursued by David Cameron and German Chancellor Angela Merkel were the wrong ones to sort out the financial crisis.
Yet again, the governments have muddled through and we have not had a decisive step forward. We have not seen the change we actually wanted to see.
I'm afraid we are going to get back to the wrangling and we still have the Cameron/Merkel view which is that big spending cuts will get growth when that is clearly not working.
Italian PM Mario Monti has won a concession from Germany over debt hours after Mario Balotelli helped Italy beat the Germans in Euro 2012.
European leaders have agreed that its banks should have direct access to EU bail out funds without adding to its government's debts.
As European leaders continue to work in to the night it is clear that there will be no big gesture here