THEY BELONG IN NAFTA, NOT EUROPE:

The Prime Minister uses an article in The Sunday Telegraph to say that Britain is in danger of getting swamped by EU legislation and bureaucracy which he would like to see scrapped. He makes clear for the first time that changes will need the "full-hearted support of the British people" down the line and adds: "For me the two words 'Europe' and 'referendum' can go together."

Mr Cameron's landmark move comes as Liam Fox, the former defence secretary, prepares to up the stakes by calling for an immediate renegotiation of Britain's relationship with the EU. If other member states fail to back this solution, Dr Fox believes, there should be a referendum with the government recommending pulling the UK out of the EU.

This newspaper has learned that Dr Fox, the standard bearer of the Tory right, will tell activists tomorrow: "For my own part, life outside the EU holds no terror. We have not moved the goalposts. But they have been moved nevertheless. We must now respond."

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