Major sees power returning to UK

Any new treaty drawn up in its wake would allow Britain to renegotiate its relationship with Brussels, he suggested yesterday.

The former prime minister claimed it was likely that Europe was heading towards a “federal state within the eurozone”

“There won’t necessarily have to be a treaty in this country for fiscal union,” he said. “It is conceivable there would be a treaty just among members of the eurozone.”

Fiscal union in Europe would change Britain’s relationship to Europe, he said. “It gives us an opportunity to negotiate for the looser form of Europe.” Sir John went on: “I think there are some areas that are worth looking.

“Fishing is one. I think there are some elements of employment law.... things like the working time directive, which I think is a very foolish piece of legislation - we could look at repatriating part of it.”