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Ed Miliband: Britain 'sleepwalking' into EU exit Ed Miliband: Britain 'sleepwalking' into EU exit
(about 2 hours later)
  
Britain is "sleepwalking" into leaving the EU, which would undermine the UK's economy and leave it "voiceless and powerless," Ed Miliband has said.Britain is "sleepwalking" into leaving the EU, which would undermine the UK's economy and leave it "voiceless and powerless," Ed Miliband has said.
Labour's leader argued that pro-Europeans could not turn a "blind eye" to the EU's failings. The Labour leader argued that pro-Europeans could not turn a "blind eye" to the EU's failings.
A new approach should be based on "building alliances for change," he told the CBI conference.A new approach should be based on "building alliances for change," he told the CBI conference.
But David Cameron called himself a "good European" who wanted to ensure EU spending to a minimum. But the Conservatives accused Labour of "opportunistic posturing" and not being "remotely credible" on the EU.
The prime minister, who is due to take part in EU budget talks this week, is also facing pressure within his own party, with Tory MP David Davis making a speech later calling for a referendum that would allow the government to forge a new, looser relationship with Brussels. The prime minister, who is due to take part in EU budget talks this week, is also facing pressure within his own party, with Tory MP David Davis making a speech calling for a referendum that would allow the government to forge a new, looser relationship with Brussels.
Last month, Labour MPs joined Tory rebels to defeat the government on its strategy to push for a freeze in the EU budget, instead pushing for a real-terms cut between 2014 and 2020. Mr Davis said he would bet a "large sum of money" that the UK would leave the EU within a decade, without "maximum possible change" in the relationship with Brussels.
The prime minister insists that a freeze is more realistic, but he has threatened to use the UK's veto if the rise proposed by the European Commission is not drastically reduced. 'Dangerous moment'
'Scepticism' Last month, Labour MPs joined Tory rebels - including Mr Davis - to defeat the government on its strategy to push for a freeze in the EU budget, instead pushing for a real-terms cut between 2014 and 2020.
The prime minister insists that a freeze is more realistic, but he has threatened to use the UK's veto if the 5% rise proposed by the European Commission is not drastically reduced.
Labour's decision to vote for an EU budget cut was seen as evidence that the party is repositioning itself on Europe towards a more Eurosceptic position, but Mr Miliband said he "passionately believes that Britain is stronger in the European Union".Labour's decision to vote for an EU budget cut was seen as evidence that the party is repositioning itself on Europe towards a more Eurosceptic position, but Mr Miliband said he "passionately believes that Britain is stronger in the European Union".
He warned the UK faced a "very dangerous moment" in its relationship with Europe and Mr Cameron, who has previously faced pressure from his own MPs to back an in/out referendum after the next election, was not working in the national interest.He warned the UK faced a "very dangerous moment" in its relationship with Europe and Mr Cameron, who has previously faced pressure from his own MPs to back an in/out referendum after the next election, was not working in the national interest.
Mr Miliband told the CBI conference in central London: "For more than three decades our membership of the European Union has seemed to be a settled question. Not any more. Public scepticism about European union has been on the rise for some time.Mr Miliband told the CBI conference in central London: "For more than three decades our membership of the European Union has seemed to be a settled question. Not any more. Public scepticism about European union has been on the rise for some time.
"Some cabinet ministers in this government now openly say that we would be better off outside the EU."Some cabinet ministers in this government now openly say that we would be better off outside the EU.
"And many of our traditional allies in Europe clearly think that Britain is heading to the exit door."And many of our traditional allies in Europe clearly think that Britain is heading to the exit door.
"Those of us, like me, who passionately believe that Britain is stronger in the European Union cannot be silent in a situation like this."Those of us, like me, who passionately believe that Britain is stronger in the European Union cannot be silent in a situation like this.
"I will not allow our country to sleepwalk toward exit because it would be a betrayal of our national interest.""I will not allow our country to sleepwalk toward exit because it would be a betrayal of our national interest."
Mr Miliband stressed the importance of being part of the single market for British businesses, which do 60% of their trade with EU members.Mr Miliband stressed the importance of being part of the single market for British businesses, which do 60% of their trade with EU members.
"If we left the EU it would be the United States, China, the European Union in the negotiating room - and Britain in the overflow room."If we left the EU it would be the United States, China, the European Union in the negotiating room - and Britain in the overflow room.
"We would end up competing on low-wages and low-skills: an off-shore low-value economy, a race to the bottom," he said."We would end up competing on low-wages and low-skills: an off-shore low-value economy, a race to the bottom," he said.
'Disaster''Disaster'
The Labour leader argued the case for the EU was not served by ignoring the institution's failings. The Labour leader argued the case for the EU was not served by ignoring the institution's "failings", adding that said the case for continued involvement had to be made "in a new way", rather than treating it as an "article of faith".
"Too many have turned a blind eye to these failings, believing their understandable real passion for the case for Britain being in Europe should mean a passionate defence of the institutions of the European Union. Instead, he argued for an approach based on "building alliances" with like-minded countries, based on plans for jobs and growth, reforming the EU budget, completing the single market and changing rules on competition.
"The answer is not just to make the same old case for the European Union more loudly. We need to argue the case in a new way, not simply assume it as an article of faith." But David Cameron described himself as a "good European", a "sensible, pragmatic British politician", who had "the people of Europe on his side" for campaigning for a tighter EU budget this week.
Instead, he argued for a new approach based on "building alliances" with like-minded countries.
A plan for jobs and growth, reforming the EU budget, completing the single market and changing EU rules on competition should form the basis of these alliances, he said.
But Mr Cameron described himself as a "good European", a "sensible, pragmatic British politician", who had "the people of Europe on his side" for campaigning for a tighter EU budget this week.
The prime minister told the CBI it "wasn't credible" to have cuts at home but then see the EU budget "going up and up", which he compared to "picking the pockets" of Europe's citizens.The prime minister told the CBI it "wasn't credible" to have cuts at home but then see the EU budget "going up and up", which he compared to "picking the pockets" of Europe's citizens.
Ken Clarke, the minister without portfolio, accused Mr Miliband of acting "opportunistically", by voting with "extreme Eurosceptics" against the government over the EU budget. Ken Clarke, the minister without portfolio and one of the most pro-European members of the government, accused Mr Miliband of acting "opportunistically", by voting with "extreme Eurosceptics" over the EU budget.
He told BBC Radio 4's Today programme that the prime minister believed that "Britain's place in the modern world has got to be in the European Union. It would be a disaster for the British economy if we were to leave the European Union. And Conservative chairman Grant Shapps said: "In a speech to business, Ed Miliband had the chance to detail how he'd deal with the deficit that Labour left behind. Instead, what we got was opportunistic posturing on Europe which isn't remotely credible."
"It damages our influence if we keep casting doubt on our membership."
Mr Clarke, one of the most pro-European of Conservative MPs, added: "I wish Ed would come down finally on one side or the other."