David Cameron
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Europe divided over Cameron's EU referendum plan

24 January 2013 Last updated at 14:23 GMT

David Cameron has addressed the World Economic Forum in Davos on Thursday, giving more details about how he plans to renegotiate Britain's position within the EU.

Mr Cameron said Europe must do more to compete and succeed in a changing world, and brushed aside criticism about the impact of the prospect of an EU referendum, claiming it would be more risky to stand back and do nothing than tackle the issue head-on.

He also warned other European leaders that any attempt to "shoehorn countries" into ever deeper union, was a mistake that Britain wouldn't be part of.

The prime minister's plan for a referendum on Britain's membership of the union has received a mixed response from European leaders and businesses, with some saying a referendum will harm investment.

Hugh Pym reports.