The EU is beginning negotiations¹ on its next budget for 2014 to 2020.

 

Mr Cameron also told the BBC that in the longer term the EU should have two different budgets - one for countries in the eurozone and one for those outside the single currency.

 

Last year Mr Cameron vetoed an EU-wide treaty to co-ordinate budget policies and impose penalties on rule-breakers.

 

Speaking on the Andrew Marr show, on the first day of the Conservative Party conference, Mr Cameron said experience showed that "people in Europe know I mean what I say". 

 

"I sat round that table - 27 countries, 26 of them signing up to a treaty and I said, 'This is not in Britain's interests, I don't care how much pressure you put on, I'm not signing, we're not having it.'

 

"They know I'm capable of saying no and if I don't get a good deal I'll say no again."

 

He said he would block talks if "massive increases" in the budget were proposed or if a deal that "does not have proper control" was put forward.

 

The prime minister said the EU budget was a "classic example of where we should probably start to draw new lines".

 

"There will come a time I believe where you're going to need to have two European budgets - one for the single currency, because they're going to have to support each other much more, and perhaps a wider budget for everybody else."

 

He added that he did not think this would be achieved this time but it was an indicator² of the way Europe is going.

 

Mr Cameron also said he favoured a referendum on a renegotiated role for Britain in the EU but once again ruled out holding a simple Yes or No vote on Britain's membership. 

 

"The fact is, I think most people in our country don't actually want to leave the European Union or just accept how it is at the moment. They want to change it."

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