From the European Affairs debate on Wednesday - per Hansard:
On the question of the European Union proposals for hedge funds and private equity and a point raised by Bill Cash on the primacy of the Commons, David Miliband stated:
"I can assure the hon. Gentleman, however, that there will be no majority voting at the European Council this week......... and that we will be able to exercise our own democratic rights in a way that I think he would approve of."
According to bloomberg.com:
Buyout firms and hedge funds, “Read my lips: You’re going to have regulation.” So says Poul Nyrup Rasmussen as he thumped a desk in an interview at the European Parliament in Strasbourg, France.
So that has cleared up who governs Britain!