In his first policy statement of the new year, British PM David Cameron on Monday sought to calm a stormy transatlantic debate on the Europe Union, saying he wants Britain to stay in the 27-nation grouping but only after a “fresh settlement” has been negotiated. “If we had an in-out referendum tomorrow, I don’t think that would be the right answer because there a lot of people who would say ‘I want to be in Europe but I am not happy with every aspect of the relationship and I want it changed’. That is my view,” the British leader said.

“I am in favour of our membership of the EU and I’m optimistic that we can achieve changes in the EU — the Union does need to change,” said Cameron, who is due to make a speech next week outlining his wishlist for EU.

Cameron has come under pressure from fellow Conservative Party MPs to spell out his European plans after Britain found itself isolated during the Eurozone crisis summit of 2011. He vetoed a financial regulation compact proposed for all EU member-states, arguing that Britain needed to protect London as the financial centre of Europe.

Britain is not a member of the currency union Eurozone. It is, however, worried that growing moves towards regulation of national economies may end up affecting non-Eurozone nation.