David Cameron: I will settle the Europe question with EU referendum

In a landmark speech, the Prime Minister said it is "time for the British people to have their say" amid growing public discontent about the power of Brussels.

He pledged an in-out referendum in the first half of the next parliament, arguing that democratic consent for membership is currently "wafer thin".

"It is time to settle this European question in British politics," he said. "I say to the British people: this will be your decision."

His promise to hold a poll was greeted with relief and praise from a wide range of Conservative MPs, but the reception across the Channel has already proved hostile in some quarters.

A French minister branded the decision to have a referendum "dangerous" and Germany's foreign minister said Britain cannot be allowed to "cherry-pick" European laws.

In a move likely to relieve pro-Europeans, Prime Minister promised that he will personally fight for Britain to stay in the EU, after re-negotiating a better deal and clawing back some powers from Brussels.

But he also went further than calling simply for the UK to have a new relationship with the EU. Setting out a wider vision for reform, he made a pitch to other leaders for a more "flexible, adaptable and open" relationship between all members, not just Britain.

"Far from unravelling the EU, this will in fact bind its members more closely because such flexible, willing cooperation is a much stronger glue than compulsion from the centre," he said.

Mr Cameron acknowledged that some of his views about wholesale reform of the EU will be seen as "heretical" by pro-Europeans.

However, he warned there is a danger "that Europe will fail and the British people will drift towards the exit" if Brussels does not wake up to a growing gap between the leadership and its citizens.

"I do not want that to happen," he said. "I want the European Union to be a success. And I want a relationship between Britain and the EU that keeps us in it."

European ministers had a mixed reaction to the speech. Guido Westerwelle, Germany's foreign minister said he "wants the United Kingdom to remain an active and constructive part of the European Union" but insisted "cherry-picking is not an option."

One French foreign minister, Laurent Fabius, also told France Info radio that the EU would be happy to "roll out the red carpet" from Britain if it really wants to go.

"It risks being dangerous for Britain itself because Britain outside of Europe, that will be difficult," he said.

"We can't have Europe a la carte. Imagine the EU was a football club: once you've joined up and you're in this club, you can't then say you want to play rugby.

"The other day I had a meeting with British businessmen and I told them: Listen, if Britain decides to leave Europe, we will roll out the red carpet for you."

However, there was a more measured response from Pierre Moscovici, the French finance minister.

He said Britain had always been a “particular” but “extremely useful” member of the EU.

“The European spirit is also to respect diversity. I support one Europe and one Europe that is differentiated, one Europe where some can advance more quickly than others,” he told BFM TV.

After the speech, Mr Cameron suggested his early soundings from other European leaders have not been positive.

However, the Prime Minister has long been battling demands from within his party for an immediate referendum. Several Cabinet ministers privately believe that Britain should consider leaving the EU.

The tone of his speech today appeared to have won round many of the most Eurosceptic Tories and even pressure groups such as OpenEurope.

Boris Johnson, the London Mayor, described the speech as "bang on", while Lord Lamont, the former Chancellor, called it an "excellent" performance that will "appeal not just to the Conservative party but to a very large section of the British people who are uneasy about our position in Europe".

Bernard Jenkin, a Tory MP and member of the influential backbench 1922 committee, welcomed the "very profound" that will recast the UK's relationship with Europe.

"It's a watershed speech," he said. "It is a commitment to give the British people a say, which all political parties at some time have intimated they would do but we've never quite got there have we? But this is a very very big moment in British politics."

The promise of a referendum may help the Conservatives win back votes lost to Ukip, the eurosceptic party, which has seen record support in recent months.

Nigel Farage, the Ukip leader, said he is happy that the EU issue has become part of mainstream debate but his party will continue to campaign for a quick withdrawal.

"I think all I think he's trying to do is kick the can down the road and get UKIP off his back," he said.

Labour today accused the Prime Minister of weakly following his party, rather than taking a decision in the best interests of the nation.

At weekly questions in the House of Commons today, Ed Miliband, the Labour leader, is likely to challenge the Prime Minister to be clear about whether he would vote to exit the EU if he cannot achieve a new settlement.

Lord Mandelson, the former Labour minister and EU trade commissioner, said David Cameron's plan for a fresh settlement with the EU will not be acceptable to leaders in Brussels.

"I think that many people, including many people in Brussels.. I think they will regard this speech as much more unvarnished, much more unqualified than they were expecting, but also unworkable," he said.

"I think other member states will not negotiate such a new settlement as the special state for Britain wihtin the European Union. I don't think they will provide a new treaty to accommodate Britain's demands and I don't think they will agree a timetable for negotiation that suits Britain's needs.. David Cameron will be left rather like a man without a plan.