[WATCH] 'We need the UK’s healthy Euroscepticism,' Muscat says

Prime Minister comments on EU summit

The United Kingdom will "fundamentally change" its relationship with the European Union in 2016, Prime Minister David Cameron said after talks with EU leaders in Brussels.

The UK prime minister said he was a "step closer" to getting the reforms he wanted, which he will put to the British people in a referendum.

Cameron has presented his government’s four main requests to the EU in what Prime Minister Joseph Muscat described as “a positive discussion”.

EU leaders offered Cameron a limited "emergency break", allowing Britain to stop migrants claiming benefits if they are harming public services.

However, Muscat said that UK proposals do not conform with EU rules and therefore the UK must return back with amended proposals.

“Europe needs the healthy Euroscepticism of the UK but we can’t agree to exceptions just because it’s the UK that wants it. If we’re agreeing with flexibility then what will be made available to the UK should be made available to all member states,” Muscat said.

Cameron is demanding change in four areas, including protection of the single market for Britain; exemption for Britain from Europe's "ever-closer union"; a deadline for the reduction of the "burden" of EU red tape; and restrictions on EU migrants' access to in-work benefits in the UK.

European Council President Donald Tusk said: "Building on this positive debate we agreed to work together to find solutions in all four baskets raised by prime minister Cameron."