With permission, Mr Speaker, I would like to make a statement on the agreement reached in Brussels last week, but first let me say a word about the migration crisis, which was also discussed at the European Council. We agreed we needed to press ahead with strengthening the EU’s external borders to ensure that non-refugees are returned promptly, and to back the new mission to disrupt the criminal gangs working between Greece and Turkey, who are putting so many people’s lives at risk. I made it clear that Britain will continue to contribute, and will step up our contribution, in all these areas.

Turning to Britain’s place in Europe, I have spent the past nine months setting out the four areas where we need reform, and meeting all the other 27 EU Heads of State and Government to reach an agreement that delivers concrete reforms in all four areas. Let me take each in turn.

First, British jobs and British business depend on being able to trade with Europe on a level playing field, so we wanted: new protections for our economy; to safeguard the pound; to promote our industries, including our financial services industries; to protect British taxpayers from the costs of problems in the eurozone; and to ensure that we have a full say over the rules of the single market while remaining outside the eurozone. We got all those things. We have not just permanently protected the pound and our right to keep it, but ensured that we cannot be discriminated against. Responsibility for supervising the financial stability of the UK will always remain in the hands of the Bank of England. We have ensured that British taxpayers will never be made to bail out countries in the eurozone. We have made sure that the eurozone cannot act as a bloc to undermine the integrity of the free trade single market and we have guaranteed British business will never face any discrimination for being outside the eurozone. So, for example, our financial services firms—our No. 1 services export, employing over a million people—can never be forced to relocate inside the eurozone if they want to undertake complex trades in euros, just because they are based in the UK.

These protections are not just set out in a legally binding agreement. All 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy inside the EU but outside the eurozone. We also agreed a new mechanism to enable non-eurozone countries to raise issues of concern, and we won the battle to ensure that this could be triggered by one country alone. Of course, none of these protections would be available if we were to leave the EU.

Secondly, we wanted commitments to make Europe more competitive, creating jobs and making British families more financially secure. Again, we got them. Europe will complete the single market in key areas that will really help Britain: in services, making it easier for thousands of UK service-based companies, like IT firms, to trade in Europe; in capital, so UK start-ups can access more sources of finance for their businesses; and in energy, allowing new suppliers into our energy market, meaning lower energy bills for families across the country.

We have secured commitments to complete trade and investment agreements with the fastest growing and most dynamic economies around the world, including the USA, Japan and China, as well as our Commonwealth allies India, New Zealand and Australia. These deals could add billions of pounds and thousands of jobs to our economy every year. And, of course, they build on the deals we already have with 53 countries around the world through which Britain has benefited from the negotiating muscle that comes from being part of the world’s largest trading bloc.

Country after country has said to me that of course they could sign trade deals with Britain, but they also said that their priority would be trade deals with the EU. By their nature, these EU deals would be bigger and better, and a deal with Britain would not even be possible until we had settled our position outside the EU. So, for those Members who care about signing new trade deals outside the EU, we would be looking at years and years of delay.

Last but by no means least, on competitiveness one of the biggest frustrations for British business is the red tape and bureaucracy, so we agreed there will now be targets to cut the total burden of EU regulation on business. This builds on the progress we have already made, with the Commission already cutting the number of new initiatives by 80%. It means that the cost of EU red tape will be going down, not up.

Of course, if we were to leave the EU but ultimately achieve a deal with full access to the single market, like Norway, we would still be subject to all of the EU’s regulation when selling into Europe—but with no say over the rules. As the former Europe spokesman for the Norwegian Conservative party said:

“If you want to run Europe, you must be in Europe. If you want to be run by Europe, feel free to join Norway in the European Economic Area.”

Thirdly, we wanted to reduce the very high level of migration from within the EU by preventing the abuse of free movement and preventing our welfare system from acting as a magnet for people to come to our country. After the hard work of the Home Secretary, we have secured new powers against criminals from other countries, including powers to stop them coming here in the first place, and powers to deport them if they are already here. We agreed longer re-entry bans for fraudsters and people who collude in sham marriages, and an end to the frankly ridiculous situation where EU nationals can avoid British immigration rules when bringing their families from outside the EU.

This agreement broke new ground, with the European Council agreeing to reverse decisions from the European Court of Justice. We have also secured a breakthrough agreement for Britain to reduce the unnatural draw that our benefits system exerts across Europe. We have already made sure that EU migrants cannot claim the new unemployment benefit, universal credit, while looking for work. Those coming from the EU who have not found work within six months can now be required to leave. At this Council, we agreed that EU migrants working in Britain can be prevented from sending child benefit home at UK rates. This will apply first to new claimants, and then to existing claimants from the start of 2020.

We also established a new emergency brake so that EU migrants will have to wait four years until they have full access to our benefits. People said it was impossible to achieve real change in this area and that a four-year restriction on benefits was completely out of the question—yet that is what we have done. Once activated, the emergency brake will be in place for seven years. If it begins next year, it will still be operating in 2024 and there will be people who will not get full benefits until 2028. All along, we have said that people should not be able to come here and get access to our benefits system straight away—no more something for nothing, and that is what we have achieved.

I am sure that the discussion about welfare and immigration will be intense, but let me make this point. No country outside the EU has agreed full access to the single market without accepting paying into the EU and accepting free movement. In addition, our new safeguards lapse if we vote to leave the EU, so we might end up with free movement but without these new protections.

The fourth area in which we wanted to make significant changes was to protect our country from further European political integration and to increase powers for our national Parliament. Ever since we joined, Europe has been on the path to something called ever closer union. It means a political union. We have never liked it; we have never wanted it. Now Britain will be permanently and legally excluded from it. The text says that the treaties will be changed to make it clear that

“the Treaty references to ever closer union do not apply to the United Kingdom.”

So as a result of this negotiation, Britain can never be part of a European superstate.

The Council also agreed that ever closer union, which has been referred to in previous judgments of the European Court of Justice, does not offer a legal basis for extending the scope of any provisions of the treaties or EU secondary legislation. People used to talk about a multi-speed Europe; now we have a clear agreement that different countries are not only travelling at different speeds but ultimately heading to different destinations. I would argue that is a fundamental change in the way this organisation works.

We have also strengthened the role of this House and all national Parliaments. We have already passed a referendum Act—the European Union Referendum Act 2015—to make sure that no powers can be handed to Brussels without the explicit consent of the British people in a referendum. Now, if Brussels comes up with legislation that we do not want, we can get together with other Parliaments and block it with a red card. We have a new mechanism finally to enforce the principle that, as far as possible, powers should sit here in Westminster, not in Brussels, so now, every year, the European Union must go through the powers that it exercises and work out which are no longer needed and should be returned to nation states.

In recent years, we have seen attempts to bypass our opt-out on justice and home affairs by bringing forward legislation under a different label. For example, attempts to interfere with the way the UK authorities handle fraud were made under the guise of EU budget legislation. The agreement at last week’s Council ensures that that can never happen again.

The reforms that we have secured will be legally binding in international law, and will be deposited as a treaty at the United Nations. They cannot be unpicked without the agreement of Britain and every other EU country. As I have said, all 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy outside the eurozone, and our permanent exclusion from ever closer union.

Our special status means that Britain can have the best of both worlds. We will be in the parts of Europe that work for us, influencing the decisions that affect us, in the driving seat of the world’s biggest single market, and with the ability to take action to keep our people safe; but we will be out of the parts of Europe that do not work for us. We will be out of the euro, out of the eurozone bailouts, out of the passport-free, no-borders Schengen area, and permanently and legally protected from ever being part of an ever closer union.

Of course, there is still more to do. I am the first to say that there are still many ways in which this organisation needs to improve, and the task of reforming Europe does not end with last week’s agreement. However, with the special status that this settlement gives us, I do believe the time has come to fulfil another vital commitment that the Government made, and hold a referendum. Today I am commencing the process set out under our European Union Referendum Act to propose that the British people decide our future in Europe through an in/out referendum on Thursday 23 June. The Foreign Secretary has laid in both Houses a report setting out the new settlement that the Government have negotiated. That fulfils the duty to publish information which is set out in section 6 of the European Union Referendum Act. As the Cabinet agreed on Saturday, the Government’s position will be to recommend that Britain remain in a reformed European Union.

This is a vital decision for the future of our country, and I believe we should also be clear that it is a final decision. An idea has been put forward that if the country voted to leave, we could have a second renegotiation and perhaps another referendum. I will not dwell on the irony that some people who want to vote to leave apparently want to use a “leave” vote to remain, but such an approach also ignores more profound points about democracy, diplomacy and legality. This is a straight democratic decision—staying in or leaving—and no Government can ignore that. Having a second renegotiation followed by a second referendum is not on the ballot paper. For a Prime Minister to ignore the express will of the British people to leave the EU would be not just wrong, but undemocratic.

On the diplomacy, the idea that other European countries would be ready to start a second negotiation is for the birds. Many are under pressure for what they have already agreed. Then there is the legality. I want to spell out this point carefully, because it is important. If the British people vote to leave, there is only one way to bring that about, namely to trigger article 50 of the treaties and begin the process of exit, and the British people would rightly expect that to start straight away. Let me be absolutely clear about how this works. It triggers a two-year time period to negotiate the arrangements for exit. At the end of this period, if no agreement is in place, then exit is automatic unless every one of the 27 other EU member states agrees to a delay.

And we should be clear that this process is not an invitation to re-join; it is a process for leaving. Sadly, I have known a number of couples who have begun divorce proceedings, but I do not know any who have begun divorce proceedings in order to renew their marriage vows.

I want to explain what happens with section 50. We should also be clear about what would happen if that deal to leave was not done within two years. Our current access to the single market would cease immediately after two years were up; our current trade agreements with 53 countries around the world would lapse. This cannot be described as anything other than risk, uncertainty and a leap in the dark that could hurt working people in our country for years to come. This is not some theoretical question; this is a real decision about people’s lives. When it comes to people’s jobs, it is simply not enough to say that it will be all right on the night and we will work it out, and I believe that in the weeks to come we need properly to face up to the economic consequences of a choice to leave.

I believe that Britain will be stronger, safer and better off by remaining in a reformed European Union: stronger because we can play a leading role in one of the world’s largest organisations from within, helping to make the big decisions on trade and security that determine our future; safer because we can work with our European partners to fight cross-border crime and terrorism; and better off because British business will have full access to the free trade single market, bringing jobs, investment and lower prices.

There will be much debate about sovereignty, and rightly so. To me, what matters most is the power to get things done for our people, for our country and for our future. Leaving the EU may briefly make us feel more sovereign, but would it actually give us more power, more influence and a greater ability to get things done? If we leave the EU, will we have the power to stop our businesses being discriminated against? No. Will we have the power to insist that European countries share with us their border information so we know what terrorists and criminals are doing in Europe? No, we won’t. Will we have more influence over the decisions that affect the prosperity and security of British families? No we won’t.

We are a great country, and whatever choice we make we will still be great. But I believe the choice is between being an even greater Britain inside a reformed EU and a great leap into the unknown. The challenges facing the west today are genuinely threatening: Putin’s aggression in the east; Islamist extremism to the south. In my view, this is no time to divide the west. When faced with challenges to our way of life, our values and our freedoms, this is a time for strength in numbers.

And let me end by saying this: I am not standing for re-election; I have no other agenda than what is best for our country. I am standing here today telling you what I think. My responsibility as Prime Minister is to speak plainly about what I believe is right for our country, and that is what I will do every day for the next four months. And I commend this statement to the House.

I thank the Prime Minister for advance notice of this statement. It obviously took him a long time to write it, because I received it only at eight minutes past 3 this afternoon.

The people of Britain now face an historic choice on 23 June on whether to remain part of the European Union or to leave. We welcome the fact that it is now in the hands of the people of this country to decide that issue. The Labour party and the trade union movement are overwhelmingly for staying in because we believe that the European Union has brought investment, jobs and protection for workers, consumers and the environment, and we are convinced that a vote to remain is in the best interests of the people.

In the 21st century, as a country and as a continent—and, indeed, as a human race—we face some challenging issues: how to tackle climate change; how to address the power of global corporations; how to ensure that they pay fair taxes; how to tackle cybercrime and terrorism; how we trade fairly and protect jobs and pay in an era of globalisation; how we address the causes of the huge refugee movements across the world; and how we adapt to a world where people of all countries move more frequently to live, work and retire. All these issues are serious, pressing and self-evidently can be solved only by international co-operation.

The European Union will be a vital part of how we, as a country, meet those challenges, so it is therefore more than disappointing that the Prime Minister’s deal has failed to address a single one of those issues. Last week, like him, I was in Brussels meeting Heads of Government and leaders of European Socialist parties, one of whom said to me—[Hon. Members: “Who are you?”] [Laughter.] No. What they said—[Interruption.] The Conservative party might care to think for a moment about what is going on. One person said to me, and I thought it was quite profound, “We are discussing the future of a continent and one English Tory has reduced it to the issue of taking away benefits”—from workers and children. The reality is that this entire negotiation has not been about the challenges facing our continent or about the issues facing the people of Britain. Indeed, it has been a theatrical sideshow about trying to appease—or failing to appease—half of the Prime Minister’s own Conservative party.

That is not to say that there have not been some worthwhile changes. The red card system to strengthen the hands of national Parliaments is something that we on the Labour Benches have long backed. Indeed, it was in the Labour manifesto for the last general election; it was not in the Conservative manifesto, but we welcome a conversion when it takes place. We also welcome the symbolic amendment on ever-closer union. Britain’s long-standing decision not to join the euro or Schengen has been settled and accepted a long time ago. However, we see the influence of Tory party funders on the Prime Minister’s special status not for Britain but for City of London interests. It is the same incentive that caused his friend the Chancellor of the Exchequer to rush to Europe with an army of lawyers to oppose any regulation of the grotesque level of bankers’ bonuses. It is necessary to protect the rights of non-eurozone states, but not to undermine EU-wide efforts to regulate the financial sector, including the boardroom pocket stuffing in the City of London.

Labour stands for a different approach. That is why our Members of the European Parliament are opposing the dangerous elements of the very secretive Transatlantic Trade and Investment Partnership, which threatened to undermine national sovereignty, push the privatisation of public services, and drive down standards for workers, consumers, the environment and public health. Human rights ought to be part of that treaty. Indeed, I believe they should be a feature of all trade treaties.

Then there is the so-called emergency brake. We support the principle of fair contribution to social security, but, the evidence does not back up the claim that in-work benefits are a significant draw for workers who come to Britain from the European Union. The changes that the Prime Minister has secured do nothing to address the real challenges of low pay in Britain and the undercutting of local wage rates and industry-wide pay agreements. They will not put a penny in the pockets of workers in Britain, stop the grotesque exploitation of many migrant workers or reduce inward migration to Britain.

Will the Prime Minister tell us what discussions he had to get European rules in place to protect the going rate and to stop agencies bringing in cheap labour to undercut workers in Britain while exploiting the migrant force? Did he speak to other EU leaders about outlawing the so-called “Swedish derogation” from the agency workers directive, which threatens to undermine one of the key achievements of the last Labour Government by allowing unscrupulous employers to use temporary agency staff to undercut other workers? Those would have been positive and worthwhile discussions to tackle low pay, reduce in-work benefit costs and protect workers. We must, on all sides, be clear that Britain has benefited from migration—from EU workers coming to work in our industry and in our public services to fill gaps. For example, I think of the thousands of doctors and nurses who work in our NHS, saving lives every day they are at work.

The European Union has delivered protection for workers in Britain. It was Labour that made sure that Britain’s EU membership gave workers rights to minimum paid leave; protection on working time; rights for agency workers; paid maternity and paternity leave; equal pay; anti-discrimination laws; and protection for the workforce when companies change ownership. It was Labour, working in partnership with sister parties and unions across Europe, that made sure the Prime Minister’s attempt to diminish workers’ rights was kept off the agenda for these EU negotiations. Labour has supported moves to reduce child benefit to non-resident children as a reasonable amendment, but we also welcome the protection for existing migrants until 2020, so that families have stability of income.

The Prime Minister’s deal includes elements we welcome and others that concern us, but it is largely irrelevant to the choice facing the British people; not one single element has a significant impact on the case we will be making to stay in. We welcome the fact that this theatrical sideshow is over, so that we can now get on with making the real case, which will be put by my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson), who will be leading our campaign. Labour believes the EU is a vital framework for European trade and co-operation in the 21st century. A vote to remain is in the interests of people, not only for what the EU delivers today, but as a framework through which we can achieve much more in the future. But to deliver these progressive reforms that I have referred to, we need to work with our partners in Europe, and therefore we must ensure that Britain remains a member. That is the case we are going to be making—it is for a Europe that is socially cohesive, and a Europe that shares the benefits of wealth and prosperity among all its citizens. That is the case we are making, as the Labour party, as the trade union movement in this country, and we look forward to that public debate.

I thank the right hon. Gentleman for his contribution. He and I disagree on many, many things—economic policy, social policy, welfare policy and even the approach we should take within Europe, as he has just demonstrated in his response—but we do agree about one thing: Britain should be in there, fighting for a good deal for our country. I worry a little for him because he is going to be accused of all sorts of things, some of them fair, some of them unfair. I fear that if he takes this course, he will be accused of being a member of the establishment, and that would be the unfairest attack of all.

On what the right hon. Gentleman said about the deal, I will make two points about why he should welcome it. The first is that, as far as I can see, it implements almost every pledge on Europe in the Labour manifesto—I am looking at the former Labour leader when I say that. Labour pledged to complete the single market. It pledged “tougher budget discipline”. It said

“we will ensure EU rules protect the interests of non-Euro members.”

That is absolutely right. The manifesto went on to say:

“People coming to Britain from the EU to look for work are expected to contribute to our economy, and to our society. So we will secure reforms to immigration and social security rules”.

I therefore hope Labour will welcome the things in this agreement. [Interruption.] I am just reminding my new friends what they said at the election. They said this:

“We will work to strengthen the influence national parliaments over European legislation, by arguing for a ‘red-card mechanism’ for member states”.

Excellent, that is another thing that has been achieved.

The right hon. Gentleman was unfair when he said that this deal was really all about Britain, and not about anyone else. The Slovakian Prime Minister said, good,

“the myth about ever-closer union has fallen.”

The Hungarian Prime Minister said:

“The UK managed to put an end to the practice of ‘creeping power withdrawal’ from national member states.”

Romano Prodi, the former President of the Commission, said this:

“The real consequence of the summit is extraordinarily important: Brussels has officially enshrined a multi-speed Europe.”

That is beneficial to Europe as well as to Britain.

Where I disagree profoundly with the right hon. Gentleman is that I think these trade deals are good for Britain and that the sooner we do the deal with America the better. He is wrong about financial services. There are more people working in financial services in our country outside the City of London than there are inside it. Crucially, what the single market means is that, with one establishment in Britain, we can trade throughout the European Union. If we lose that, we will see jobs going from Britain to other countries.

Let me end on a note of consensus. Labour Governments and Conservative Governments standing here have all had their difficulties with Europe. We have all wanted to get the budget down. We have all wanted to get powers returned. We have all found that, because of our love for this House of Commons and for British democracy, this process can sometimes be trying, but, at the end of the day, we have always known that, when it comes to our economy, prosperity and security, we are better off fighting from the inside.

Does the Prime Minister agree—I am sure that he will—in referring to the continental press, that he has demonstrated the influence of a British Prime Minister, as he has forced some concessions that will be quite difficult for fellow Presidents and Prime Ministers to sell to their own political establishments? Does he agree that future generations will benefit from some of those concessions, particularly those on enlarging the single market, guaranteeing our access to parts of it, deregulating, and engaging in major trade deals with outside? Does he also agree that it is not the politics of fear to point out that those who advocate a no vote do not seem to know what a no vote means? They continually imply that all the benefits that flow from Europe in terms of jobs, investment and security will somehow continue to come here when they have swept away the obligations that previous British Government have always accepted.

I am grateful to my right hon. and learned Friend for what he has said. It has been interesting to see what some of the foreign newspapers have made of this. Let me give one example. A Spanish paper said:

“British exceptionality reached new heights yesterday. No other country accumulates so many exceptions in Europe.”

I am proud of the fact that we have a different status in Europe and that that status has become more special with the changes that we have made.

The point that my right hon. and learned Friend makes is absolutely right. I recognise that there are disadvantages to being in the European Union. I make no bones about that, but I can look the British people in the eye and say, “This is what it will be like if we stay in. It will be better because of the deal that we have done.” The people who are advising us to leave must spell out the consequences of leaving. The absolute lodestar is this: no country has been able to get full access to the single market without accepting either paying into the EU or accepting free movement. If people do not want to accept those two things, they have to start accepting that they will not get as good a trade and business position as we have today. People who want to leave must start making up their minds: do they want a Norway deal, a Switzerland deal or a Canada deal? Frankly, I do not mind which deal they go for, but they must start telling people because they deserve an answer.

May I begin by thanking the Prime Minister for advance sight of his statement? The referendum choice before the electorate is a huge one and it will define our relationship with the rest of Europe and indeed among the nations of the United Kingdom. Scotland is a European nation and the Scottish National party is a pro-European party. We will campaign positively to remain within the EU. Hopefully, the Prime Minister can confirm today that he will reject the tactics of project fear and that he will make a positive case for remaining part of a reforming European Union.

It is hugely important to be part of the largest market in the world and be able to influence its rules and laws. It really matters that we can co-operate with our shared challenges, from the environment to crime and security to workers’ and citizens’ rights. We should also never forget the lessons of European history and not turn our backs on our European neighbours who need help at this time to deal with huge challenges, including that of migration.

Public opinion in Scotland, by a majority, supports membership of the European Union. Every single Scottish MP supports our remaining in the EU, as does almost every Member of the Scottish Parliament and all Scottish MEPs bar one. Does the Prime Minister have any idea what the consequences would be if Scotland were taken out of the EU against the wish of the Scottish electorate? I want Scotland and the rest of the UK to remain in the European Union. However, if we are forced out of the EU, I am certain that the public in Scotland will demand a referendum on Scottish independence, and we will protect our place in Europe.

First, I can confirm that I will make, as I have done today, a positive case based on Britain being stronger, Britain being safer, and Britain being better off, but this is a choice. It is important that we set out the choice and the alternative to the British people, because this is potentially the most important decision that people will make on a political issue in their lifetime. I do not want anyone to take a step into the dark without thinking the consequences through properly.

I absolutely agree with the right hon. Gentleman about one thing. Although Brussels and the institutions can be frustrating, we should never forget what brought this institution into being in the first place. Even at the most frustrating times in talks, I look round the table and think of how these countries fought one another and killed one another’s people for so long, so the dialogue and action that we take together is positive. As for the vote in Scotland, this is one UK vote.

My right hon. Friend has spoken about national Parliaments, democracy and our sovereignty. In his Bloomberg speech, he made it clear that he regarded our national Parliament as the root of our democracy. Yesterday, he referred to the “illusion of sovereignty”. Will he explain and repudiate that statement, specifically in relation to the question now before us, our Parliament, our democracy and the making of our laws, which at this moment in time under the European Communities Act 1972, are made by a majority vote of other countries, are introduced by an unelected Commission, and are enforced by the European Court of Justice? Does he not accept that the only way of getting out of that and returning our democracy is to leave the European Union?

First, I have huge respect for my hon. Friend, who has campaigned on this issue for many years, and the one thing he will welcome is the fact that we are now allowing the British people a choice on whether to stay in or leave the European Union. Let me confirm that, yes, this Parliament is sovereign. We have chosen to join the European Union, and we can choose to leave it. Let me explain exactly what I meant when I said that there would in many cases be the “illusion of sovereignty” by taking one issue. We now have safeguards so that British banks and businesses cannot be discriminated against if we stay in the European Union because we are not in the euro. Were we to leave, we would not have that protection. They could discriminate against us. Frankly, I think they would discriminate against us, so we might feel more sovereign, but it would be an illusion of sovereignty because we would not have the power to protect the businesses that create jobs and livelihoods in our country.

Despite assurances, it is worth remembering that this referendum is about the future of our country, not the future of a divided Conservative party. Does the Prime Minister agree that it is not just about Britain’s place in the European Union but about Britain’s place in the world? President Obama has made it crystal clear that if Britain left the European Union that would weaken, not strengthen, the special relationship. The Indians and Chinese are mystified that we are even risking exit from the European Union. Does the Prime Minister agree that if in future Britain wants to stand tall in New Delhi, Beijing, Washington and other global capitals, it must continue to stand tall in our own European neighbourhood?

The right hon. Gentleman is right that we should make this decision ourselves as a sovereign nation and a sovereign people, but it is worth listening to our friends and listening to what they think is best for our country. Of all the leaders and politicians I have met around the world, I cannot think of any of our friends—not Australia, not New Zealand, not Canada, not America—who want us to leave the EU. The only person I can think of who might want us to leave the EU is Vladimir Putin. As for what the right hon. Gentleman, my former colleague, said about the need for this referendum, I make the slightly cheeky point that we are implementing the 2010 Lib Dem manifesto by holding it.

May I ask my right hon. Friend the Prime Minister to explain to the House and the country in exactly what way this deal returns sovereignty over any field of lawmaking to these Houses of Parliament?

This deal brings back some welfare powers, it brings back some immigration powers, it brings back some bail-out powers, but more than that, because it carves us forever out of ever closer union, it means that the ratchet of the European Court taking power away from this country cannot happen in future. For those who worry—and people do worry—that somehow if we vote to remain in, the consequence could be more action in Brussels to try and change the arrangements we have, we have a lock in this House of Commons: no power can be passed from Britain to Brussels without a referendum of the British people. So we have a better deal, we have a special status, and we have a chance to make sure that we build on what we have, protect our people and enhance our prosperity, and that is the choice we should make.

Let me thank the Prime Minister for quoting and implementing parts of the 2015 Labour manifesto.

I want to go to the big picture question, which is about how we influence things in our national interest. Let me draw the Prime Minister out on the powerful end to his statement. Of course, by being a member of the European Union, we do not always get out own way, but given what he said to the hon. Member for Stone (Sir William Cash), on all the major issues, whether it is trade, climate change or terrorism and security—he can tell us, because he has been the Prime Minister—does he believe we have more influence in the European Union or outside? Surely the answer is that we have more influence inside the European Union, not outside. That is why I passionately believe we must remain in the European Union.

I am grateful to the right hon. Gentleman for what he says. I cannot promise to implement many other parts of the Labour manifesto, but I am glad to have been of assistance on this occasion. I absolutely agree with him. The big picture is this: when it comes to getting things done in the world that can help keep people safe in our country, or getting a bigger, better deal on climate change, do we get more because we are in the EU? Yes. Making sure we have sanctions against Iran that really work and get Iran to abandon its nuclear programme—do we do that through the EU and other bodies? Yes, absolutely. On making sure we stand up to Russian aggression in Ukraine, we have been the linchpin between the European Union and the United States of America in making those sanctions count. If we had been outside the European Union during that period, we would have been waiting at the end of the phone to find out what the decisions were going to be. Instead, we were making them, we were driving them, between Europe and America. That is how we get things done for our people.

According to the Guido Fawkes website today, there is a letter appearing in The Times tomorrow which has been written by a Chris Hopkins on behalf of organisations across the UK supposedly wishing us to remain. Chris Hopkins is apparently a civil servant. Can the Prime Minister tell us who Chris Hopkins is, which Department he works for, and what authority he has as a civil servant to campaign for the remain lobby?

I can answer very simply. He is a civil servant working in No. 10 and his authority comes from me. He is doing an excellent job. This is not a free-for-all. The Government have a clear view, which is that we should remain in a reformed European Union, and the civil service is able to support the Government in that role. Members of Parliament, Ministers and Cabinet Ministers are able to make their own decision, but the Government are not holding back or hanging back from this. We have a full-throated view that we should put forward in front of the British people so that they can make their choice.

I am tempted to ask whether the Prime Minister thinks blonds have more fun, but I will actually ask whether he remembers the analysis his Government did in 2014 of the European arrest warrant. It concluded that the European arrest warrant acts as a deterrent to offenders coming to this country. Will he point that out to his Work and Pensions Secretary, and will he ask the Home Secretary to brief the Work and Pensions Secretary on all the other reasons why Britain is safer and more secure in the European Union?

The European arrest warrant is a good case in point. All of us who have this concern about sovereignty and the rest of it had our concerns about the arrest warrant, but look at what has happened in practice. When, in 2005, terrorists tried to bomb our city for a second time, one of them escaped and was arrested and returned to Britain within weeks under a European arrest warrant. Before that, it could have taken years. So I think we can all see that the practical application of these changes definitely keeps us more safe.

When it comes to this question of fighting terrorism and cross-border crime, obviously people are going to have different opinions. I would urge people, though, to listen to the head of the Association of Chief Police Officers, to listen to the former director of MI5, to listen to the head of Europol. These are people who know what they speak of, and they are very, very clear: these measures help us to stay safe.

Having spent the best part of the recess in the Arctic circle with the Royal Marines, I am extremely conscious of the need to ensure that every one of our serving military personnel can cast their vote—to leave or to remain—in the forthcoming EU referendum, which the Prime Minister has worked so hard to get on to the statute books for us. Will he please confirm that every serving member of our armed forces, wherever they are in the world, will be entitled to vote? Will he guarantee that they will receive their ballot papers in good time, and will he confirm how we will ensure that everyone is counted?

My hon. Friend clearly had a more entertaining recess than I did—I am rather jealous. There were moments when I wished I was in the Arctic circle, I can tell you. I believe that the arrangements are absolutely the same as for a general election. We have now four months until the referendum, so there is plenty of time to put in place the arrangements that she seeks.

I pay credit to the Prime Minister for delivering a referendum to the British people. I well remember the time he came to this House and argued against a referendum, but I am glad he came round to supporting those of us who believed that holding one was the right thing to do. He will know that we on the Democratic Unionist party Benches are extremely disappointed that we do not have, as a result of his deal, control over our sovereignty, over our borders or over our finances.

The Prime Minister said in his statement that it is “simply not enough” for those on the leave side “to say that it will be all right on the night and we will work it out”—he wants definite facts. When, therefore, will migrants coming to the United Kingdom begin to be eligible for some benefits? He should not tell us he is going to work it out; he should tell us when they will first become eligible for any kind of benefit.

What we have is a phased approach, so that, over four years, they get access to benefits. There is no access to benefits to start with, and full access only after four years. That is a huge advance. Compare that with the lack of certainty that we are being offered from people who want to leave, who cannot tell us whether they favour a model like Norway or Switzerland, or whether they want a trade deal like Canada, or, as some do, just want to reclaim a purely World Trade Organisation position. We need to know the answer to that, because, frankly, it is only when we know that that people can make a proper judgment about the security of staying in and the dangers of getting out.

Last week’s decision requires treaty change to be both irreversible and legally binding. When will the ratification procedure begin?

I am afraid that my right hon. Friend is not right. It is already legally binding and irreversible, because this is a decision of 28 Governments to reach a legally binding decision that is then deposited as a legal document at the UN, so this could be reversed only if all 28 members, including the UK, were to come to a different decision. But the document sets out very clearly that two specific areas—the changes that we need to the treaty on ever closer union, and safeguards for businesses and countries outside the eurozone—will be put into the treaty as well.

The Mayor of London, who has been touted as the leader of the leave campaign, said yesterday that Britain would easily be able to

“negotiate a large number of trade deals at great speed”

because we

“used to run the biggest empire”

the world has ever seen. Will the Prime Minister invite the Mayor to wake up to the 21st century, in which the European economy is six times larger than the British economy and in which it took seven years for Canada to get a trade deal? Does he agree that with so much uncertainty in the world economy, it would be deeply disruptive to increase the risks for British exporters, British manufacturers and British jobs?

Where I share the frustration of many of those who are questioning whether we should stay in is that Britain does need trade deals to be signed rapidly, and we do find it frustrating that Europe is not moving faster, because the Korean free trade agreement has been excellent, and we want to push ahead with Japan, with Canada, with America, and with China—and because of this document, all those things are more likely. Where I think the right hon. Lady has a good point is that you cannot sign trade deals with other countries until you have determined the nature of your relationship with the EU from the outside. That would take at least two years, and then you have to think, how long does it take to sign trade deals? The Canada deal is now, I think, in its seventh year and is still not put in place, so I worry that this is a recipe for uncertainty and risk. Businesses literally would not know what the arrangements were for year after year, and British business, British jobs and our country would suffer as a result.

My 1998 pamphlet calling for us to address the question of our role in the world via a referendum on our EU membership may have escaped the Prime Minister’s attention, but he will understand why I am absolutely delighted that he has now provided us with an opportunity to resolve this question for a generation. Does he agree that if the country votes to remain, we must positively commit to the institutions of the European Union to best ensure its success and to move on from the grudging tone that has so dominated our discourse, and that equally the establishment he leads must positively engage with a potential decision to leave and undertake reasonable contingency planning now?

Let me make a couple of points to my hon. Friend. First, one of the things this renegotiation does is to address some of the principal grudges that I think this country has rightly had: too much of a single currency club, too much political union, too much in terms of migration and lack of respect for welfare systems, not enough competitiveness and removing bureaucracy. Having dealt with some of these grudges, yes, it may be possible to make sure that we get more things done that suit us. I would also agree with something that the Mayor of London said, which is that we need to make sure that we have high-quality British officials in every part of the organisation so that we can help to drive its agenda. My hon. Friend is right that this should be done to settle the issue for a generation. He is also right that we will be publishing the alternatives to membership so that people can see what they are and that there are plans that could be made.

The Prime Minister said that great reform has been granted in the renegotiation. Why, then, did the French President say that the European Union has not granted the United Kingdom any special dispensations from its rules in the deal that has been struck, and go on to say that the Prime Minister had accepted that the City of London would not have special status compared with Europe’s other stock exchanges? Why is there such a difference between what the French President is saying and what the Prime Minister is saying?

The French Foreign Minister, Jean-Marc Ayrault, said:

“The agreement with the British is a recognition that there is a differentiated Europe”.

I have already quoted the Slovakian and Hungarian Prime Ministers and the former Italian Commissioner, and François Hollande said:

“We have recognised Britain’s position—not in Schengen, not in the Euro Zone, she does not subscribe to the Charter of Fundamental Rights”.

They are recognising that Britain has a special status in Europe.

Although the referendum decision—in or out—is a matter for the British people, as the leader of an Atlanticist party, does the Prime Minister recognise and acknowledge the concerns of the White House, the Pentagon, the State Department and international players that have already been mentioned that Britain and Europe need to stand together in an unsafe world?

My hon. Friend makes an important point. I do not believe that the American view is based simply on, “Well, it’s easier to make one phone call rather than many.” I think it is based on the fact that they believe that Britain will be a stronger partner and more able to get things done and to bend the will of other countries in our and America’s direction when it comes to solving great crises. If we ask ourselves how we have managed to massively reduce pirate attacks off Somalia, and how we are going to try to fix the problem of Libya’s border, then we see that, yes, we can act unilaterally, and yes, there are valuable partnerships in NATO, but EU partnerships are worth a lot too.

Given that the pound has slid to its lowest level for seven years on the news that the hon. Member for Uxbridge and South Ruislip (Boris Johnson) has joined the leave campaign, are we not just getting a glimpse of the major economic upheaval that could follow if we leave the European Union? Is that not a timely reminder that the long-term best interests of our country should come ahead of party politicking and personal ambition?

It is important that we look in detail at the full economic impacts of either staying in or choosing to leave the EU. We will set out that approach in the weeks and months to come so that people can see what the dangers and risks are and what the case is.

Do not the common agricultural, fishing and energy policies do damage to domestic producers and add to the colossal deficit we always run with the rest of the EU while running a trade surplus with the rest of the world? What can we do about those unfairnesses if we stay in the European Union?

We have made a lot of progress in recent years. The wine lakes and butter mountains are a thing of the past. We have made big reforms to the common fisheries policy. I know that my right hon. Friend studies these things very closely, but although we have a deficit with the EU on goods, we have a substantial surplus when it comes to services. We have to think about the future and how we safeguard the services industries as well as making sure that our position in the single market is open.

Opening up EU markets in areas such as energy and digital services could create hundreds of thousands of jobs in future. Does the Prime Minister agree that remaining part of the EU would give the UK a strong voice in making sure that the completion of that single market happens, and would get the best deal for British business and jobs?

The hon. Lady makes an important point, which is that Britain has a strong voice in the EU to get these single markets completed. The declaration on competitiveness from the EU Commission is worth reading. She also points out that, if we were not there, not only would the EU continue to exist and have a very big impact on our lives, but it would probably head in a very different and more protectionist direction, and that would affect us, in many ways quite badly.

My right hon. Friend will no doubt have been deluged with advice on EU law during his negotiation, so on the subject of ever closer union, can he give us a concrete example of a single European Court of Justice case that would have had a different outcome if the measures he agreed last week had been in place at the time?

Ever closer union has been mentioned in a series of judgments by the European Court of Justice, and there are two things in what we have agreed that I think will have an impact. Obviously, the most eye-catching of those is in paragraph 1 on page 10, which states that the substance of the agreements

“will be incorporated into the Treaties at the time of their next revision”

and will

“make it clear that the references to ever closer union do not apply to the United Kingdom.”

That is obviously a carve-out for us, but just as significant—and this is something that many other countries did not want—is the content of the next paragraph, which states:

“The references in the Treaties and their preambles…of creating an ever closer union…do not offer a legal basis for extending the scope of any provision of the Treaties or of EU secondary legislation.”

That redefinition of ever closer union is a fundamental change to the way in which the organisation has worked. One way to think of it is that there have been two threats to our sovereignty. The first came from treaty change passing powers from Britain to Brussels, but that cannot happen now because of our lock. The second is the use of terms such as “ever closer union” to make sure that the EU grows its powers, but that cannot be done now that we have that change. One of the reasons why the deal took 40 hours of all-night negotiations is that not everybody likes it. The deal is not meaningless words; it is words that mean something, that matter and that make a difference. That is why I was so determined to secure it.

The Prime Minister was elected on 37% of the vote. Even if half those people were to vote in, the referendum can be won only on the basis of people who voted Labour, Scottish National party, Liberal, Plaid Cymru and Green. Is it not a reasonable supposition to make that those people will be more interested in a positive articulation of the case for Europe than in the factional arguments of the Conservative party, entertaining though they are? When will the Prime Minister put forward that positive case for Europe?

I do not want to upset the right hon. Gentleman, because I am hoping that he will be supportive. In the speech that I made today, I set out a positive case. Yes, it is the case of someone who is Eurosceptical in the genuine sense: I am sceptical about all organisations and about all engagements. We should always question whether organisations work for us, and we should be doubtful about such things. That is what being sceptical means.

I come at this as someone who has their doubts about Brussels and doubts about the EU, but I have an absolutely clear eye about what is best for Britain. If others want to argue from a more positive stance about the nature of the EU, fine—go for it. It is up to everyone to make their own case, but I am going to make my case in a clear-eyed determination of what is in Britain’s interest, and I think I did that today.

The Prime Minister has centred much of the renegotiation on immigration, so can he tell the House, in his estimation, by how much the welfare changes will reduce immigration from the EU in the coming year?

Anyone who knows that, at the moment, someone can come from the EU and get up to £10,000 of in-work welfare benefits in the first year knows that that is a big incentive to come to Britain. Many people said that we would never be able to get changes to in-work benefits, but we have got those changes. If we pass this legislation we will see, in 2017, a seven-year period up to 2024 in which we will be restricting these welfare claims. That, plus all the changes that the Home Secretary helped to secure—in many cases reversing ECJ judgments—will actually restore to our country powers over welfare and powers over immigration that can make a real difference.

Plaid Cymru supports our membership of the EU. We also support further reform, and we will campaign accordingly. Were we to leave, what would happen to measures such as convergence funding, which has provided large amounts of money for the poorer areas of west Wales and the valleys?

The short answer is that if we were to leave the EU, we would not be able to get those funds, which have made a big difference in parts of Wales, in parts of England—for instance, in Cornwall—and in other parts of our country. I am someone who wants to keep the EU budget down, and we achieved the historic decision to cut it, but I think we should be frank that some of the work that the EU has done in poorer countries in other parts of the EU has helped those economies to grow. They are all customers of ours, so whether it is Bulgaria, Romania, Greece or wherever, their economic development is in our interests.

In January, I introduced a Bill to try to protect our children from flammable costumes—to protect children from going up in flames. I pulled the Bill this month after discussions with officials from the Department for Business, Innovation and Skills, who told me that the matter comes under harmonised legislation. Thousands of directives are spewed out from Brussels every year with which the Government have to comply. We cannot even protect our own children on something so fundamental, because we do not have control without the permission of Brussels.

I will look carefully at the case my hon. Friend has mentioned, because I know that such things can be frustrating. In the area of foam-filled furniture and foam-filled mattresses, we have taken steps over and above what other EU countries have done, and that has kept our own people safer. The other thing I would say is that a lot of different figures are bandied about on the matter, but if she looks in the House of Commons Library, she will see that far from the very high figures quoted by some, more like 13%, 14% or 15% of laws come to us from that direction.

May I commend the Prime Minister for his statement and congratulate him on successfully persuading his European counterparts to sign up to the renegotiation. He has of course been less successful in persuading half the Conservative party to support him. Will he accept that although his renegotiation may have been successful, it is not central to how most people will make up their minds? When we belong to a European single market that is worth £80 billion a year to this country, the real question is are we better off in or out? When we are facing huge insecurities and dangers in this world, are we better off alongside our friends and neighbours, or outside on our own? When we face huge international challenges, such as climate change and the refugee crisis, are we better off working with others, or isolated on our own? Will he join me in our shared ambition for a Britain in Europe, not the blond ambition behind him?

The renegotiation was aimed at dealing with some of the legitimate grievances that we have had in the UK for many years about the way in which the EU works. We felt it was too much of a single currency club and too much of a political union, and was not enough about competitiveness and had not enough protections in terms of welfare and immigration. I believe the renegotiation and agreement go a long way to dealing with each of those problems.

Now is the time, as the hon. Gentleman says, for the even bigger argument about the future of our country and about what sort of country we want to live in for ourselves, and our children and grandchildren. It is a huge issue, and on the points he makes about Britain being strong in the world and able to get things done, I would argue that our membership of NATO matters and our membership of the UN matters, but our membership of the EU also gives us force and power to get things done in the world.

On these Benches we are rightly proud of our record on the drop in unemployment, the record growth—best in the G7—and the reduction in our deficit. During my right hon. Friend’s many meetings, did he find anybody, even a single person, who suggested we might get better terms, on our exit, to achieve even better outside the European community?

My right hon. Friend makes an important point. There is good will towards Britain because of the contribution we make to the EU. There is understanding of the problems and difficulties that we have had. Therefore, with a huge amount of diplomacy —travel and meetings and everything else—it has been possible to get, I think, a good agreement for Britain. As I said in my statement, if we were somehow to kick over the table and ask for a second one, I do not think that would be remotely feasible.

May I particularly welcome the equalisation of the spouse visa rules, which discriminated unfairly against British citizens? May I also ask the Prime Minister to recognise the work of the Minister for Europe? I managed only two years in the job; he has done six, and he has still retained his sanity—almost.

On the other big issue, the migration crisis, the British head of Europol said today that 5,000 jihadists are now within the European Union area. Many of them have come in through the external border of the EU. What additional help is being given to Greece and Italy, in particular, to try to deal with protecting the external border, with the support of Frontex?

First, let me thank the right hon. Gentleman for his remarks about the Europe Minister, who was with me in Brussels for this marathon negotiation —I thought his eyes were shutting for a minute there. He has been doing the job for six years, and has done it extremely well.

The point about spousal visas is important. For many years, we argued that this needed to be sorted out, and for many years the EU said back, “Well, if you want to equalise the rules, change your own rules.” Now, we have in effect managed to change its rules, so it is a real breakthrough.

In terms of the help that we are giving to Italy and Greece, the discussions in Brussels were very intense because the numbers really have to be reduced, and reduced radically. That is why I strongly support, and Britain will contribute to, the maritime operation—it will have strong NATO support, as well as EU support—to try to bring together Greece and Turkey, with a common information picture or common intelligence about what is happening, so we can stop so many of these criminal gangs operating in the area. Without that, there will not be the right chance of getting this situation under control.

For decades, British Ministers who have had involvement with Europe—I include myself in this—have been tempted to exaggerate the influence we bring to bear and conceal our inability to achieve British interests. Is that why it took a freedom of information request to establish that over the last two decades, Britain has voted against 72 measures in the European Council and been defeated 72 times, and that the pace of defeat is accelerating? If we make the mistake of taking the risk of remaining in the EU, how many defeats does the Prime Minister expect over the next two decades?