I WAS fortunate to be welcomed by David Cameron to Chequers last week following the European Union summit where he became the first British Prime Minister to use the veto when faced with a new European Treaty which did not do enough to safeguard UK interests.

The most important thing is that we have a relationship with the EU which allows us to maximise the benefits which will arise from trade, while maintaining a robust defence of our national interests. We now have a Government prepared to take a tough stance with our European partners.

It is important Europe takes decisive action to sort out the problems of the eurozone. Although we are not members of the euro, the ongoing economic turbulence in Europe will affect our economy as Europe is our largest trading partner. The Eurozone members have signed up to a package of measures which will address their debt crisis. We should support their efforts in this regard. Holding a referendum at this time would cause further uncertainty which would damage our economy.

The debate has been dominated by discussion of what the use of the veto means for the coalition. I can give you every assurance that the coalition is doing just fine.

Of course the Liberal Democrats are not happy about the veto – they have a policy of more positive engagement with Europe than that shared by the Conservative Party. But commitment to the coalition remains strong. Neither party has to surrender any part of its own identity, but both parties have come together to govern in the national interest. The Prime Minister and the Deputy Prime Minister can have distinctive positions on areas which do not form part of the coalition agreement and the business of Government will continue.