Retreat to Europe’s margins ‘economic suicide’

The Deputy Prime Minister said if Britain were to “retreat to the margins” of Europe and attempt to rewrite the EU’s founding texts it would open a “Pandora’s Box” and leave the continent paralysed when it should be focused on restoring growth.

The Liberal Democrat leader and Sheffield Hallam MP’s intervention comes as David Cameron continues to face massive pressure to bring powers back to Westminster.

More than 80 Conservative MPs rebelled last week over a call for a referendum on UK membership of the union and a poll this weekend showed two thirds of the public and 80 per cent of Tory voters agreed with their actions.

However, Mr Clegg said the European landscape was “about to change” and complained that “two extremes” were dominating the debate on how Britain should respond.

“On the one hand, there are some who see an opportunity for a more centralised EU, built around a tighter, quasi-federalist core,” Mr Clegg wrote. “On the other are those who imagine a chance for the UK to draw away from the union.

“The irony is that both options require treaty change: Europhiles and Europhobes are clamouring for the same thing.

“As always, neither extreme of the argument is right.”

He also rejected the idea that the UK should aim to become the leader of the “outs” – the 10 countries that have not joined the euro. The former Lib Dem leader, Sir Menzies Campbell, added that there could be no unilateral renegotiation of powers by the UK.

Mr Cameron said yesterday that he wanted to see a “further rebalancing” when it came to Europe but conceded “we are obviously going to have to act as a coalition”.

However Labour’s shadow foreign secretary, Douglas Alexander, said the Tories “glory in their isolation” over Europe but should be working to protect the UK’s national interest.