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EU referendum will not damage economy - David Cameron EU referendum will not damage economy - David Cameron
(35 minutes later)
David Cameron has rejected claims an EU referendum will damage the UK economy, criticising those who argue the UK should stay in the EU "come what may".David Cameron has rejected claims an EU referendum will damage the UK economy, criticising those who argue the UK should stay in the EU "come what may".
The prime minister told business leaders that the UK was securing more inward investment than the whole of the EU despite his 2017 referendum pledge.The prime minister told business leaders that the UK was securing more inward investment than the whole of the EU despite his 2017 referendum pledge.
He suggested a better deal would be good for "shareholders and customers".He suggested a better deal would be good for "shareholders and customers".
Ed Miliband and Nick Clegg will also address the issue of Europe when they speak at the CBI's annual conference, Ed Miliband and Nick Clegg will also address the issue of Europe when they speak at the CBI's annual conference.
All three party leaders are seeking to reassure business leaders that their views on an EU referendum are in the UK's interest. With a general election six months away, the three leaders of the largest Westminster parties are seeking to reassure business leaders that their views on an EU referendum are in the UK's national and economic interest.
The employers group has said the prospect of a referendum is causing uncertainty and could deter companies from looking to expand or hire new workers. Businesses have warned that the prospect of a referendum is causing uncertainty and could deter them from looking to expand or hiring new workers.
But UKIP, which wants the UK to withdraw immediately from the EU, has said the CBI was a cheerleader for joining the euro in the 1990s and its "judgements should always be questioned".
'Nod and wink''Nod and wink'
In his speech, Mr Cameron said the government's economic strategy was working and the UK should "stick with it". But Mr Cameron rejected claims a referendum would destabilise the economic recovery, suggesting there were days when the UK was securing more inward investment than the whole of the EU combined despite the warnings about its future membership.
He pledged a £15bn revolution for the UK's road network, with 100 major motorway and trunk road upgrades by 2020 to tackle "pinch points and problem areas". "The worst thing for us to do as a country is to pretend that this European debate is not happening," he told the conference.
On Europe, he said public support for the EU has eroded and a referendum, preceded by a re-negotiation of the terms of the UK's membership, was vital to safeguarding the UK's interests as the EU changed. "The best thing is to get out there and make the arguments."
He insisted he wanted the UK to stay within a reformed EU, one based on "common market and co-operation, not an ever-closer union". He added: "Simply standing here and saying we will stay in Europe come what may is not a plan. It is not a strategy, it will not work."
He insisted he wanted the UK to stay within a reformed EU, one based on a "common market and co-operation, not an ever-closer union".
"Britain's future in Europe matters to the country. It is not working... and that is why we need to make changes.""Britain's future in Europe matters to the country. It is not working... and that is why we need to make changes."
'Not working' During his speech Mr Cameron said the government's economic strategy was working and the UK should "stick with it", although he acknowledged the deficit was still too high.
He rejected claims this would destabilise the economic recovery, suggesting that there were days when when the UK was securing more inward investment than the whole of the EU combined. He pledged a £15bn revolution for the UK's road network, with 100 major motorway and trunk road upgrades by 2020 to tackle "pinch points and problem areas".
Mr Cameron said the worst approach was to "pretend a debate on Europe was not happening" and politicians must "get out there and make the arguments". 'Political games'
He added: "Simply standing here and saying we will stay in Europe come what way is not a plan. It is not a strategy, it will not work." When he speaks later, Mr Miliband will accuse the prime minister of "flirting" with leaving the EU, claiming it has weakened, not strengthened the UK's hand in negotiations with other EU countries.
Mr Miliband will accuse the prime minister of "flirting" with leaving the EU, claiming it has weakened, not strengthened the UK's hand in negotiations with other EU countries.
"Giving succour to the argument that the real answer is leaving the EU, or contemplating it, simply drags us closer to exit," he will say."Giving succour to the argument that the real answer is leaving the EU, or contemplating it, simply drags us closer to exit," he will say.
"And every nod and wink to those who want to leave sends a message to potential investors in our country that we are not open for business."And every nod and wink to those who want to leave sends a message to potential investors in our country that we are not open for business.
"If I am prime minister I will never risk your businesses, British jobs, British prosperity by playing political games with our membership of the European Union.""If I am prime minister I will never risk your businesses, British jobs, British prosperity by playing political games with our membership of the European Union."
'Political games'
And Nick Clegg will argue that business faces twin risks if either the Conservatives or Labour govern on their own after the election.And Nick Clegg will argue that business faces twin risks if either the Conservatives or Labour govern on their own after the election.
"A Labour Party that has not learnt a single lesson about fiscal responsibility," he will say. "A Conservative Party that, if allowed, will sever our ties with the EU.""A Labour Party that has not learnt a single lesson about fiscal responsibility," he will say. "A Conservative Party that, if allowed, will sever our ties with the EU."
"It will be Britain's businesses that bear the brunt - make no mistake. Your profits. Your share prices. The thousands and thousands of people you employ.""It will be Britain's businesses that bear the brunt - make no mistake. Your profits. Your share prices. The thousands and thousands of people you employ."
The three party leaders are also expected to address business concerns about plans to curb immigration from both inside and outside the EU. 'Based on facts'
Mr Cameron said that the UK needed proper immigration controls but acknowledged that further curbs would not deliver benefits without accompanying reforms of welfare, education and skills. Business leaders are seeking assurances from the party leaders about their plans to curb immigration from both inside and outside the EU.
It comes as Home Secretary Theresa May described the Conservatives' pledge in opposition to cut net migration to below 100,000 a year as a "comment". CBI President Sir Mike Rake rejected claims the country faced an "either/or choice" between immigration and a more skilled UK workforce.
"Immigration has been and is part of the solution to the skills shortages faced by the UK but it is clear that there is a disconnect between the experiences of businesses and the public at large," he told the conference.
"In some areas, concerns about immigration have become a substitute for frustrations with living standards," he said.
"Business has a vital role to play in ensuring the debate is based on the facts whilst recognising the genuine concerns of the public around immigration."
Mr Cameron said the UK needed proper immigration controls but said further curbs would not deliver benefits without accompanying welfare, education and skills reforms.
It comes as Home Secretary Theresa May described the Conservatives' pledge in opposition to cut net migration to below 100,000 a year as a "comment" rather than a promise.
The UK Independence Party, which wants the UK to withdraw from the EU, questioned the CBI's judgements, saying it had been a cheerleader for joining the euro in the 1990s.
"It wants to lock Britain into an undemocratic European superstate that uses excessive regulation as a way of keeping small and medium-sized companies from breaking into a cosy corporate cartel," said MEP Patrick O'Flynn.