Nick Clegg accepts EU poll but says leaving would be economic suicide

http://www.theguardian.com/politics/2013/oct/08/nick-clegg-says-leaving-eu-would-be-economic-suicide

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Nick Clegg will call for the rules of the EU's single market to be rewritten to allow Britain and other countries outside the eurozone to be allowed to block changes proposed by members of the single currency.

In a major speech on the EU, the deputy prime minister will say that he now expects a referendum on Britain's EU membership to be held in the coming years.

The deputy prime minister will warn that leaving the EU would be "economic suicide". But he will indicate that the Liberal Democrats might be able to find common ground with the Tories in negotiations on the future of the EU when he says that protecting the single market should be a major priority.

David Cameron has said that Britain will fight hard to protect the single market if the Lisbon treaty is amended to allow eurozone members to underpin changes to the governance of the single currency. Clegg will make clear that he shares the prime minister's view that the founding rule of the single market – that no member state should have a veto – should be amended to ensure that the 17 eurozone members cannot force through changes against the will of the countries outside the single currency.

Clegg will say: "Next time there is treaty change I will certainly advocate new legal safeguards guaranteeing that – whenever a reform might impact on the single market – Euro-ins and Euro-outs have an equal say."

His proposals are drawn from the successful Treasury negotiations over the EU's banking union. George Osborne agreed to sign up after securing a commitment that future banking regulation could only be introduced if consensus is reached among euro and non-euro member states.

In his speech Clegg will say that he thinks Cameron is wrong to propose a referendum on an arbitrary timetable in 2017. He will say that the Lib Dems still believe that a referendum should only be held if there is a change in the relationship between Britain and the EU.

But the deputy prime minister will make clear that he expects a referendum will be held. He will say: "The parties differ on the timing. The Conservative party want one in 2017, regardless of what's happening in Europe at that time: it's a date chosen for internal party management as much as anything else. The Liberal Democrats believe it will be far better to have the referendum when a serious change to Europe's rules, affecting the UK, next arises. But we all agree that it will happen at some point or another."

Clegg is highly critical of Tories and others who want to leave the EU. He will say: "Let me be absolutely clear: leaving the EU would be economic suicide. You cannot overstate the damage it would do to British livelihoods and prosperity. Three million British jobs are linked to the single market – three million.

"As a member we are part of the world's biggest borderless market place, made up of 500 million people. It's now the largest economy in the world – ahead of the United States – and it's where we do around half of all our trade."

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