David Cameron Promises 'In-Out' EU Referendum

Cameron And The EU: A Q&A

Updated: 10:18am UK, Wednesday 23 January 2013

By Nicola Boden, Sky News Online

David Cameron's speech on Britain's position in Europe is significant for his party and for the country. Here is an explainer.

Why has Cameron made this speech?

Mr Cameron's speech on Britain's position in Europe has been a long time coming.

He wanted to set out his views on the future role the UK should play in the European Union to try and settle rumblings in his own party and beyond.

The issue has become increasingly significant as the eurozone crisis developed and single currency members started pushing for closer integration in a bid to prevent a repeat of the crippling financial crisis.

This will require a new treaty, which could allow Britain to renegotiate its membership on a looser basis.

Mr Cameron wants to use this as a way of addressing growing calls for a referendum due to fears about the steady loss of sovereignty to Brussels.

Why was it delayed?

The speech was first planned months ago but put off until after Christmas.

It was initially planned for January 22 but then Downing Street were told this clashed with the anniversary of the signing of the Elysee Treaty between France and Germany and the timing would therefore play badly with these two key European allies.

January 21 was not an option because of Barack Obama's inauguration.

It was moved to January 18 and Amsterdam was fixed as the location, only for it to be delayed again because of the hostage crisis in Algeria.

Mr Cameron eventually chose to speak in London on Wednesday because it fits best with his schedule.

Why is it significant?

This speech has been billed as the most important foreign policy speech made by Mr Cameron since he first became Tory leader.

Europe is certainly becoming an increasingly pressing issue within the Tory party and nationally.

Senior ministers including Michael Gove have now openly talked about leaving the EU if powers cannot be brought back to Britain.

The Prime Minister hopes to settle the question with a clear strategy - the promise that he will work on a new settlement and hold an in-out referendum in the next parliament if he stays as PM.

Europe has long been a fault line in the Tory party and Mr Cameron is hoping that he can keep his party united as he increasingly focuses on winning the next general election.

It is also an opportunity to steal a march on Labour, whose leader Ed Miliband is very woolly about his own position, and the Lib Dems - led by renowned europhile Nick Clegg.

Furthermore, it could help stem the flow of support to UKIP, who advocate total withdrawal from the EU and have been surging in recent opinion polls.

What are Tory eurosceptics pushing for?

There are varying degrees of feeling on the Conservative benches but it has been suggested that a document drawn up by the "Fresh Start" group could become party policy.

This called for:

:: the repatriation of all social and employment law, such as the Working Time Directive;

:: an opt-out from all existing policing and criminal justice measures;

:: an emergency brake on any new legislation affecting financial services;

:: stopping the European Parliament moving between Brussels and Strasbourg.

What is David Cameron's position?

The Prime Minister wants to establish a "fresh settlement" with Brussels and then hold a referendum on it in 2018.

His plan would be to negotiate a looser relationship for Britain while allowing the single currency countries to forge stronger links, thus retaining the common market.

His speech was relatively broad but called for an end to the principle of "ever closer union", greater flexibility, accountability and competitiveness, a resolution to the eurozone crisis and a system that allows the return of powers from Brussels.

When pushed, he also signalled that the referendum pledge could be a red line if he is forced into a new coalition in 2015, insisting: "If I am prime minister, it will happen".

Downing Street seems confident the public would vote to stay in the EU if significant powers were returned to the UK.

Mr Cameron insists he wants Britain to remain in the EU but accepts that public support is "wafer thin" and that fundamental change is needed.

Is repatriation of powers realistic?

This is the million-pound question.

Other EU members are unlikely to take kindly to British attempts to pick and choose what it wants to sign up to.

There is a risk that they could call Mr Cameron's bluff and say that Britain should just leave if it no longer wants to play a proper part.

But the Prime Minister hopes that other countries will join his call for change, boosting his negotiating position. He has said he will act alone if not.

What about pro-Europeans?

Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable have both warned that tabling a referendum will encourage uncertainty and put off investors, costing much-needed jobs at a time of economic fragility.

Business chiefs including Sir Richard Branson also published a letter earlier this month, urging Mr Cameron not to jeopardise relations with Brussels by pushing for a "wholesale renegotiation" of British membership.

Meanwhile, the Obama administration has declared that it wants a "strong British voice in the EU" - a view repeated by Barack Obama on the phone to Mr Cameron last week.

Where do the other parties stand?

Both Labour and the Lib Dems are on tricky territory when it comes to Europe.

Labour leader Ed Miliband was tied in knots last week when asked to outline his position.

He has refused to back a referendum but also suggested he would not overturn the current "referendum lock" which means a vote would have to be held if any more powers are transferred.

He created further confusion by suggesting he too would try to repatriate some powers.

Nick Clegg has called Mr Cameron's plans to bring back powers from Brussels a "false promise wrapped in a Union Jack".

In their manifesto in 2010, the Lib Dems expressed their commitment to an in/out referendum the next time Britain has to sign up to a "fundamental change" in the UK-EU relationship.

But now the Lib Dem leader says holding referendum would be putting "the cart before the horse" because Europe is still reeling from the eurozone crisis.

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