Tory minister breaks ranks with Cameron over Europe

A cabinet minister has intensified the pressure on the prime minister by saying that there will have to be a referendum in the UK if treaty revisions are agreed by EU leaders.

In an interview with the Spectator, Owen Paterson, the Northern Ireland secretary and a leading Eurosceptic, broke ranks with David Cameron’s carefully crafted position before Thursday’s Brussels summit, when leaders will attempt to stabilise the eurozone.

Paterson told the magazine’s political editor, Fraser Nelson: “If there was a major fundamental change in our relationship, emerging from the creation of a new bloc, which would be effectively a new country from which we were excluded, then I think inevitably there would be huge pressure for a referendum.”

Asked whether a referendum would be necessary, he told the magazine: “I think there will have to be one, yes, because I think the pressure would build up.

“This isn’t going to happen immediately because these negotiations are going to take some months. But I think down the road that is inevitable.”

Cameron’s position, repeatedly spelt out over the past few days – despite increasing disquiet on the Eurosceptic Tory backbenches – is that there would only be a referendum if UK powers were transferred to the EU.

Paterson’s intervention earned him a rebuke from No 10. A Downing Street spokesman said: “Owen was trying to expand on the PM’s Mansion House speech and I’m sure he was trying to be helpful.”

But Downing Street sources said Paterson’s remarks did not represent government policy.

Cameron’s line had already been publicly questioned by the cabinet’s other leading Eurosceptic, Iain Duncan Smith, the work and pensions secretary, who entered similar territory on the Murnaghan programme on Sky News on Sunday.

The mayor of London, Boris Johnson, also entered the fray, telling Radio 4’s The World at One there should be a referendum if there was any major EU treaty change involving the 27 member nations.

“It’s absolutely clear to me that if there is a new treaty at 27 – if there is a new EU treaty that creates a kind of fiscal union within the eurozone – then we would have absolutely no choice either to veto it or to put it to a referendum,” he said.

Cameron came under pressure at prime minister’s questions from Tory backbenchers over the repatriation of powers from Europe as the Labour leader, Ed Miliband, accused him of holding a “confusing” position over what he intends to achieve when he heads to Brussels.

Miliband challenged Cameron over his promises to Tory backbenchers that he would use treaty changes to repatriate powers, claiming he was saying one thing to appease his Eurosceptic MPs but another thing to European leaders.

Cameron insisted he wanted “more power and control” for the UK, specifically to protect the financial services sector and the City of London.

But he faced questions from a number of Tory MPs who called on him to use the opportunity of a treaty change to repatriate powers to the UK.

Cameron sharpened his stance on Tuesday and in advance of the EU summit, by threatening to wield Britain’s veto to block a revision of the Lisbon treaty if fellow European leaders refused to protect the position of the City of London.

With the possibility of amendments to treaties to impose closer fiscal union on nations using the single currency, he told the Commons: “The more that countries in the eurozone ask for, the more we will ask for in return. But we will judge that on the basis of what matters most for Britain.”

Andrew Rosindell was the first of a number of Tory backbenchers to raise the talks. The MP for Romford urged Cameron to show “bulldog spirit” at the talks.

Cameron replied. “That is exactly what I will do. The British national interest absolutely means that we need to help resolve this crisis in the eurozone. It is freezing the British economy just as it is freezing economies right across Europe.

“So resolving this crisis is about jobs and growth and business and investment right here in the UK. At the same time we must seek safeguards for Britain, that is the right thing to do.”

Miliband reminded him that six weeks ago Cameron had said a treaty change “might give us the opportunity to repatriate powers”.

He asked: “At the European summit, what powers will you be arguing to repatriate?”

Cameron told him: “We will have the key aim of helping to resolve the eurozone crisis. We believe that means European eurozone countries coming together and doing more things together. If they choose to do that through a treaty at [the level of] 27 [member states] that we are involved in, we will insist on some safeguards for Britain.

“And yes, that means making sure we are stronger and better able to do things in the UK to protect our own national interests.

“Obviously, the more that countries in the eurozone ask for, the more we will ask for in return. But we will judge that on the basis of what matters most to Britain.”

The Labour leader said: “The more you talked, the more confusing your position was.”

“Why do you think it is in the national interest to tell your backbenchers one thing to quell a rebellion on Europe and tell your European partners another?”

John Baron, MP for Basildon and Billericay, urged Cameron to seize a “once-in-a-lifetime opportunity” to repatriate powers.

He said: “Our history of repatriating powers back from the EU is not a happy one. May I therefore suggest a fundamental renegotiation of our relationship with the EU based on free trade and competitiveness, which other countries enjoy, and not political union and dead-weight regulation?

“This EU summit is a defining moment, a once-in-a-lifetime opportunity. Will you seize the moment?”

Cameron said he was optimistic about achievements so far, pointing to his government’s success in not having to contribute to EU bailouts.

“Let’s be clear that there is an option of a treaty at 27 where we have the ability to say yes or no and as a result get a price for that. But there is always the possibility that the eurozone members at 17 will go ahead and form a treaty of their own. Again we have some leverage in that situation because they need the use of EU institutions but we should recognise what that leverage is and make the most of it.”

Andrew Turner, MP for the Isle of Wight, said the UK should be seeking treaty changes on immigration, employment and fishing rights.

Cameron replied: “Clearly, the more changes eurozone countries want to do in a treaty of 27, the more changes they want to make, the greater the ability we have to ask for sensible things that make sense for Britain.”