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"Look at the Norwegians for example, where in order to maintain access to the single market they basically receive the new rules on the fax machine from Brussels and they have to implement them without changing them", Alexander said. "For a country that values its international influence and leadership and wants to maintain its trading position receiving a large chunk of our laws on the fax from Brussels rather than being able to shape them would be very bad for Britain.“
Cameron’s strategy has divided public opinion and the business community and caused tensions within the ruling coalition with the Lib Dems refusing to match his promise of a membership referendum, saying they would only hold such a vote if there was a further major change in British-EU relations. But opinion polls show many Britons back Cameron on Europe. So do many MPs in his ruling Conservative party, as well as the predominantly eurosceptic press.
The surging anti-EU UK Independence Party, whose poll rating has gone from single digits to 19 per cent in some polls, wants Cameron to go further and hold a referendum immediately in which it hopes people would vote to leave the 27-nation bloc.
Alexander said it was the wrong time for such a debate, arguing that change in the eurozone spurred by the currency bloc's debt crisis meant that Britain had a unique chance to reshape and lead the EU rather than leave it. "It's not only irresponsible it is completely wrong to be saying actually of all times now is the time to be contemplating leaving Europe when we've got this wonderful opportunity to lead in Europe. Arguments about calling a referendum on British withdrawal, sort of apropos of nothing, are a huge distraction. Britain leaving the EU would be catastrophic at every level - for our economy, for our ability to attract investment, for trade, for jobs and for political influence."