Referendum ‘a threat to economic recovery’says Hague

A REFERENDUM on Britain’s future in the EU could damage the nation’s economic recovery and undermine attempts to tackle the Eurozone crisis, William Hague warned yesterday.

The Foreign Secretary has appealed to Conservative MPs not to vote for the measure at a time of “profound economic uncertainty,” instead reasoning that greater power could be wrested from Europe through negotiations.

Prime Minister David Cameron is facing potentially the most dangerous rebellion of his premiership so far when the Commons votes on the referendum in a backbench debate tomorrow.

At least 61 Conservative MPs have now signed a motion calling for a referendum on whether the UK should remain in the EU, leave or renegotiate its membership, and some predict the total number of rebels could exceed 85.

But Hague, one of the Cabinet’s most prominent Eurosceptics, stressed that a referendum was “not the answer”.

Hague said: “As a Conservative, I want to bring powers back from Europe, as we set out in our election manifesto. But a referendum on Britain’s membership of the EU, especially at this time of profound economic uncertainty, is not the answer.

“Nothing would do more to help our economic recovery than a resolution of the Eurozone’s difficulties, while its disorderly break-up would have a very serious impact on our economy.”

He received welcome support from former Tory Cabinet minister Peter Lilley – seen as a hardline Eurosceptic – who also cautioned against a referendum.

“If we are in the business of getting back powers from Europe ... then we have to go about negotiating that return of powers, and you cannot do that through a referendum,” Lilley said. “The opportunity will present itself when Europe comes to us and the Eurozone countries want to change the treaty to shore up the euro with further integrationist measures.

“We will say then ‘Well, you need our support because you need the unanimous support of all the countries to change the treaty.

“So even though that doesn’t affect us we will only give you our support if in return you return some powers to us’.”

Mark Pritchard, secretary of the Tory backbench 1922 Committee, called on Cameron to impose only a non-binding single-line whip in tomorrow’s vote, which would allow MPs to back the motion without facing disciplinary action.

However, Downing Street has made clear that the Prime Minister expected all Conservative MPs to oppose not only the referendum motion but also two amendments tabled in the hope of finding compromise.