WE MUST STICK TOGETHER, WARNS CLEGG

Nick Clegg warned today that Europe could only overcome the economic crisis by sticking together and avoiding "needless rivalry and isolation".

Seeking to re-engage with European leaders in the wake of David Cameron's treaty veto, the Deputy Prime Minister insisted: "We will not sort out this crisis by falling apart."

He was speaking to fellow liberals from across Europe at a Whitehall summit to address the economic challenges facing the continent.

It comes after the Prime Minister sent shockwaves through the coalition and Britain's relations with Europe by vetoing a new European Union treaty designed to tackle the problems facing the eurozone.

Mr Clegg, a staunch pro-European, sought to reassure his allies in Europe as they gathered in Admiralty House today.

"We can only address these problems by pulling together," he said.

"The one lesson we have learnt over and over again in Europe, to our cost, is that we are stronger when we are together and weaker when we are apart.

"It is immensely important to work as liberals, in all our different countries, in all our different ways, to promote unity over disunity and to promote co-operation rather than needless rivalry and isolation."

The Liberal Democrat Deputy Prime Minister also warned that fiscal austerity was not enough and had to be accompanied by economic growth.

"We will not solve this economic crisis through economic austerity alone. Fiscal discipline, fiscal austerity is an absolutely necessary condition in order to move forward, but it isn't a sufficient condition for the European economy," he said.

Among those joining Mr Clegg for today's lunch and roundtable discussions were Olli Rehn, the European Commissioner for economic and monetary affairs, Dutch prime minister Mark Rutte and German economy minister Philipp Roesler.

Mr Clegg said: "Unity will get us through this crisis better than disunity, and growth will get us through this crisis where fiscal austerity alone cannot."

Nick Clegg: Euro Leaders must stick together

Mr Clegg said any EU efforts to tackle the eurozone crisis - and excluding the UK after the veto - should be "limited" and focused on dealing with the fiscal problems facing the single currency.

At a press conference after talks between the European liberal democrat leaders, he said: "We don't think it should be broadened to include economic governance in a sweeping way.

"It would be a mistake, in our view, if it was to seek to reinvent, duplicate or usurp the single market. We don't need a whole battery of new instruments, articles and agreements to do what we can do already."

He added: "We all agree that this new agreement should be limited in scope, it should be temporary as a stand-alone instrument, and should not in any way cut across the basic cohesion and unity within the EU."

But he also indicated that the new measures could eventually be incorporated into the treaties of the EU.

"What we would like to see is a new instrument which is narrow, which doesn't usurp or disrupt the single market, doesn't challenge the rights of the United Kingdom or those of any other member state of the EU, and is over time absorbed into the EU treaties."

The European liberal democrat leaders gathered in London as German chancellor Angela Merkel and French president Nicolas Sarkozy met to discuss boosting growth in the eurozone.

Mrs Merkel and Mr Sarkozy urged a quick conclusion to negotiations on a new agreement meant to enshrine tougher fiscal discipline.

The German leader said negotiations were "progressing well", and the pact could be signed as early as the end of this month, and at the beginning of March at the latest.

Asked whether he had a New Year message for Tory eurosceptics, Mr Clegg said: "We are at our best when we lead. We are not at our best when we are isolated."

He said it would be "disastrous" if the coalition was to break up but said differences between himself and Mr Cameron on the EU were nothing new.

"It would be disastrous for this country, given the really, really difficult and controversial rescue mission that we are implementing as a coalition to the British economy, for the Government to fall apart.

"Of course we have our differences, of course David Cameron and I don't see eye to eye on the EU. What's new?

"It's one of the big differences between our parties, but like so many big issues in the coalition, we try to resolve our differences in the national interest and we will continue to do so."

Mr Cameron and Mr Rutte agreed during talks at Downing Street that "concrete action" to boost growth must be priority at the next EU summit.

A No 10 spokeswoman said: "They discussed the European economy and agreed that urgent action is required to find a sustainable financing solution to the current debt crisis in the eurozone.

"They also agreed that improving competitiveness across Europe is the long-term priority to tackle the causes of the crisis and that concrete action to boost growth should be agreed by EU leaders when they meet in Brussels at the end of January.

"They agreed to explore specific elements of a pro-competitiveness agenda, including completing EU trade deals with other countries; extending the single market in the areas of services, energy, IT and telecoms; and reducing regulation which stifles business and jobs.

"The Prime Minister also raised the situation in Somalia ahead of the international conference that he will chair in February.

"The leaders agreed that the international community should step up efforts to tackle the problems of state failure, terrorism and piracy in Somalia."


©AP 2012