The UK could be forced to quit the European Union if the organisation does not reform, George Osborne has warned.
The chancellor said it was essential to “protect the collective interests of non-eurozone member states” while the rest of the EU forged stronger links.
Without such reform, the UK might “face a choice between joining the euro or leaving” the EU, he said.
The 28-member group also had to do more to ensure economic competitiveness with rivals like India and China, he added.
Labour said David Cameron’s “weakness” regarding his party was preventing reform, while the UK Independence Party said the prime minister had repeatedly “caved in” to Brussels.
Mr Osborne’s speech followed the Conservative leadership rejecting a call from 95 of the party’s MPs to allow Parliament to block EU laws which damage the national interest
