Crisis may help us reform EU says Cameron

The Prime Minister told his audience last night at the Lord Mayor’s Banquet that the EU would remain an “organisation in peril representing a continent in trouble” unless action was taken.

He warned that Europe’s economy was growing more slowly than the rest of the world and blamed “pointless interference, rules and regulations” for stifling growth.

Mr Cameron said European countries had indulged in overspending and are uncertain about how to deal with the consequences.

But he said it would not be in Britain’s national interests to pull out of the EU. Instead he said it should play a key role reforming the system to promote open markets and value each nation’s identity. He said: “Out of crisis can come opportunity for the European Union, if its member states are ready to grasp it. Now is the chance to ask: what kind of Europe do we actually want?

“For me, the answer is clear. One that is outward-looking – with its eyes to the world not gazing inwards. One with the flexibility of a network, not the rigidity of a bloc – whose institutions help by connecting and strengthening its members to thrive in a vibrant world, rather than holding them back.” Mr Cameron’s speech focused on his Government’s foreign policy objectives. He reaffirmed a commitment that by the end of 2014 no British troops will be serving in Afghanistan in a combat role.

He told the audience that giving overseas aid prevented countries “disintegrating” which lead to problems of asylum and terrorism in the UK.

Earlier yesterday he also outlined plans to name and shame schools in middle class areas which did not stretch pupils to their full potential. He said focusing on raising standards in inner-city schools had masked a “hidden crisis” in more prosperous areas . Mr Cameron said he also wanted the new free schools to act as the “shock troops for innovation.”

The first free schools to cater for special needs pupils were given approval yesterday including one in Leeds which will serve children with autism and a school for vulnerable young people to be run by Everton Football Club.