Vince Cable warns David Cameron against EU ‘gamble’ on eve of keynote speech

LIBERAL Democrat Business Secretary Vince Cable will today urge David Cameron not to take a “dangerous gamble” over membership of the European Union.

Mr Cable will suggest any effort to negotiate large-scale exits from existing EU powers would make it “next to impossible” to safeguard Britain’s best interests in the single market.

The latest pressure on the Prime Minister, ahead of a key policy speech on Europe tomorrow, comes after Labour leader Ed Miliband claimed he had “lost control of his party”.

Mr Miliband also alleged that Mr Cameron had given the “green light” to Conservative Cabinet ministers to argue that the UK should leave the EU, a point the Prime Minister refused to answer.

Yesterday, a group of Conservative backbenchers published their own demands, calling for powers to be clawed back. The Fresh Start Project’s Manifesto for Change urged Mr Cameron to focus his efforts on “a robust but achievable renegotiation of our terms of membership”.

During his keynote speech in Holland tomorrow, Mr Cameron will set out plans to seek the “fresh consent” of the British people after negotiating a new settlement.

He is expected to announce plans for a referendum on a new settlement with Brussels after the 2015 general election. But today Mr Cable will echo warnings by his party leader, Deputy Prime Minister Nick Clegg, that uncertainty over the future will have a “chilling effect” on the already-fragile economy.

The Business Secretary will also draw a direct link between the present debate and the surge in popularity for the UK Independence Party (Ukip) with the issue of immigration and the risks of 1930s-style nationalism.

Addressing businessmen in Oxfordshire, he will say: “Any reopening the whole question of British membership creates additional uncertainty at a time when there is already fragile economic confidence in the wake of the financial crisis.”

Mr Cable will add: “This uncertainty is potentially driving away investors and the jobs they create”, and will say that he had never met a major British exporter who would prefer the UK to be outside the EU.

Attacking Mr Cameron’s anticipated strategy, Mr Cable will insist: “This is a terrible time to have the diversion and uncertainty which the build-up to a referendum would entail.

“It is far from clear what the rival propositions actually mean. We simply do not know what structures and governance will emerge from the eurozone crisis or what it means for the UK.

“It is totally unclear whether the other members of the EU will be willing to negotiate new terms for the UK and on what basis. Uncertainty is the enemy of investment.”

Mr Cable will recognise the scope for “far-reaching reform” in Brussels and the need to address a “democratic deficit of popular disenchantment” about EU membership.

He will add: “The eurosceptic calculation is that British permission is necessary for closer integration – via treaty change – and that this permission can be traded for the negotiating objectives.

“That seems to me a dangerous gamble to make. There are many in Europe, notably in France, who would be happy to see the back of the UK.”

During PMQs yesterday, Mr Miliband claimed the Prime Minister’s position was “an in/out referendum now would be destabilising, but promising one in five years’ time is just fine for the country”.

But Mr Cameron said “What is in Britain’s interest is to seek a fresh settlement in Europe that is more flexible, more competitive. ”

The Labour attack will be continued today by shadow foreign secretary Douglas Alexander.

Five main points to manifesto, that has blessing of top Tories

The Fresh Start Project’s Manifesto for Change urges the Prime Minister to focus his efforts on “a robust but achievable renegotiation of our terms of membership”.

It demands five significant revisions to EU treaties:

• An “emergency brake” for all member states on financial services issues;

• Repatriation of powers on social and employment law, or at least a UK opt-out and emergency brake in these areas;

• A UK opt-out from all policing and criminal justice measures;

• A new legal safeguard for the single market;

• The abolition of the Strasbourg seat of the European Parliament.

Foreign Secretary William Hague appeared to signal that the group’s ideas chime with thinking on Europe at the top of the Conservative Party, hailing the manifesto in a foreword as a “well-researched and well-considered document full of powerful ideas for Britain’s future in Europe”.

The project is fronted by ex-Cameron aide George Eustice.