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EU referendum will not damage economy - David Cameron EU referendum will not damage economy - David Cameron
(about 1 hour 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 also said he would push for tighter immigration controls despite business concerns over UK skills shortages.
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 speak at the CBI's annual conference.
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.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.
Businesses have warned that the prospect of a referendum is causing uncertainty and could deter them from looking to expand or hiring 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.
'Nod and wink''Nod and wink'
But Mr Cameron rejected claims a referendum would destabilise the economic recovery, suggesting there were months when the UK was securing more inward investment than the whole of the EU combined despite the warnings about its future membership.But Mr Cameron rejected claims a referendum would destabilise the economic recovery, suggesting there were months when the UK was securing more inward investment than the whole of the EU combined despite the warnings about its future membership.
"If there has been uncertainty, why is it that there has been such an extraordinary period of investment into our country?" he told the conference."If there has been uncertainty, why is it that there has been such an extraordinary period of investment into our country?" he told the conference.
He added: "The worst thing for us to do as a country is to pretend that this European debate is not happening. The best thing is to get out there and make the arguments."He added: "The worst thing for us to do as a country is to pretend that this European debate is not happening. The best thing is to get out there and make the arguments."
He added: "Simply standing here and saying 'I will stay in Europe, I will stick with whatever we have, come what may' is not a plan. It is not a strategy, it will not work."He added: "Simply standing here and saying 'I will stay in Europe, I will stick with whatever we have, 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".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," he said. "It is not working properly... and that is why we need to make changes.""Britain's future in Europe matters to the country," he said. "It is not working properly... and that is why we need to make changes."
CBI director general John Cridland said he welcomed David Cameron's "endorsement" of the business group's "In with Reform" European strategy.CBI director general John Cridland said he welcomed David Cameron's "endorsement" of the business group's "In with Reform" European strategy.
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.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 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".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".
'Political games''Political games'
When he speaks later, Labour leader 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. When he speaks later, Labour leader Mr Miliband will accuse the prime minister of "flirting" with leaving the EU, claiming this 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."
And deputy prime minister Nick Clegg will argue that business faces twin risks if either the Conservatives or Labour govern on their own after the election.And deputy prime minister 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," the Lib Dem leader will say."A Labour Party that has not learnt a single lesson about fiscal responsibility," the Lib Dem leader will say.
"A Conservative Party that, if allowed, will sever our ties with the EU.""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."
'Based on facts''Based on facts'
Business leaders are seeking assurances from the party leaders about their plans to curb immigration from both inside and outside the EU.Business leaders are seeking assurances from the party leaders about their plans to curb immigration from both inside and outside the EU.
CBI President Sir Mike Rake rejected claims the country faced an "either/or choice" between immigration and a more skilled UK workforce. CBI President Sir Mike Rake rejected claims the country faced an "either/or choice" between immigration and a more skilled UK workforce, saying the UK would need skilled foreign workers "for some time to come".
"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."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."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.""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."
'Undemocratic'
Mr Cameron said the UK needed proper immigration controls but said further curbs would not deliver benefits without accompanying welfare, education and skills reforms.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. His comments come as Home Secretary Theresa May described the Conservatives' pledge in opposition to cut net migration below 100,000 a year by 2015 as a "comment" rather than a promise.
Net migration - the difference between the number of people coming into the UK and those leaving - rose by 38% to 242,000 in the 12 months to March 2014.
Downing Street said there had been "no change whatsoever" in David Cameron's desire to get net migration down to the tens of thousands by next year.
Former Conservative minister Greg Barker told the BBC's Daily Politics that it would be "incredibly challenging" to hit this target, although it was still the party's aim.
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.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."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.