Stay at heart of Europe, U.S. tells Britain

Diplomats warn Cameron may set Britain on a path to EU exit by putting a "new settlement" on membership terms to a referendum.

Story highlights

  • White House on Wednesday signaled growing concern about a possible British EU exit
  • Washington says "special relationship" is best served by UK remaining at the heart of EU
  • Cameron plans to renegotiate Britain's membership terms and put "new settlement" to a referendum
  • The prime minister wants a looser relationship with an increasingly integrated EU core

The Obama administration on Wednesday publicly signaled its growing concern about a possible British exit from the EU, just days before David Cameron sets out plans for a referendum on the issue.

US diplomats have privately warned for months that Mr Cameron risked setting Britain on a path to exit with his plan to renegotiate Britain's EU membership terms and put the "new settlement" to a referendum.

But Washington has now taken the unusual step of publicly briefing British journalists that it firmly believes the "special relationship" is best served by the UK remaining at the heart of Europe.

Read more: Obama Cabinet becoming a boys club?

Philip Gordon, assistant secretary for European affairs, made it clear that there would be consequences for Britain if it either left the EU or played a lesser role in Brussels. "We have a growing relationship with the EU as an institution, which has an increasing voice in the world, and we want to see a strong British voice in that EU," he said. "That is in America's interests. We welcome an outward-looking EU with Britain in it."

Jacob Kirkegaard, of the Peterson Institute for International Economics in Washington, said: "This is essentially [the US] saying to the UK -- 'you guys are on your own'. There is an element of preemption here and must be clearly intended to create waves."

EU jobs crisis worsens
EU jobs crisis worsens


    EU jobs crisis worsens


EU jobs crisis worsens 04:28

Dominic Raab, a Conservative backbencher, dismissed the warning, saying: "Britain should do what's in its interests not what's convenient for the Americans." But a spokesman for Mr Cameron said: "The US wants an outward-looking EU with Britain in it and so do we."

Eurozone's economic outlook for 2013
Eurozone's economic outlook for 2013


    Eurozone's economic outlook for 2013


Eurozone's economic outlook for 2013 03:14

Read more: Europe's jobless numbers spiking

Mr Gordon, speaking at the US embassy in London, said that he did not want to interfere in British affairs but discussed the often "inward-looking" history of EU negotiations, noting that "referendums have often turned countries inwards".

"The more the EU reflects on its internal debate the less it is able to be unified," he said, adding that the continent was more effective when it worked together, for example over the recent oil embargo on Iran.

Mr Cameron wants Britain to stay in the EU but is expected later this month to set out a "renegotiate and referendum" strategy, which he would deploy if he wins Britain's 2015 election.

Read more: Which country has most economic freedom?

The prime minister wants a looser relationship with an increasingly integrated inner EU core -- based around the eurozone -- and hopes to repatriate powers to Britain, such as rules limiting working hours.

The British negotiations would take place as part of what could be protracted talks on a proposed EU treaty to deepen eurozone economic union, making a UK referendum on the outcome unlikely before 2017 or 2018.

Herman Van Rompuy, the European Council president, said on Wednesday it could be at least two years before any new treaty came on to the table: "The possibility of having treaty change in the near future [is] present, but not very high."

The opposition Labour party claims Britain risks "sleepwalking to [an EU] exit". Douglas Alexander, shadow foreign secretary, said Britain needed to be careful not to become an "isolated island in the North Atlantic".

"Critically [membership of the EU] amplifies UK influence in a world where economic and political power are shifting to the east," he told the BBC's Today programme on Thursday.

Business leaders, including Virgin founder Sir Richard Branson, warned this week in the FT that Mr Cameron would fail if he sought a "wholesale renegotiation" of Britain's membership, heightening the risk of a No vote.

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