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Lord Howard and George Osborne at odds over EU exit Lord Howard and George Osborne at odds over EU exit
(35 minutes later)
Former Conservative leader Michael Howard is backing a UK exit from an "outdated, flawed and failing EU".Former Conservative leader Michael Howard is backing a UK exit from an "outdated, flawed and failing EU".
He told the BBC the UK should have the "national self confidence" to go its own way, arguing that it had the clout to negotiate trade deals with anyone.He told the BBC the UK should have the "national self confidence" to go its own way, arguing that it had the clout to negotiate trade deals with anyone.
He said David Cameron should stay on as PM even if the UK voted to leave in order to negotiate the terms of exit.He said David Cameron should stay on as PM even if the UK voted to leave in order to negotiate the terms of exit.
But Chancellor George Osborne has said if Britain voted to leave the EU it would have a profound economic shock. But Chancellor George Osborne has said if Britain voted to leave the EU it would cause a profound economic shock.
Speaking in Shanghai, where he is attending a meeting of G20 finance ministers, Mr Osborne told BBC political editor Laura Kuenssberg that the economy faces more risks of uncertainty than at any point since the financial crisis in 2008.Speaking in Shanghai, where he is attending a meeting of G20 finance ministers, Mr Osborne told BBC political editor Laura Kuenssberg that the economy faces more risks of uncertainty than at any point since the financial crisis in 2008.
As a result, he said it would be the "very worst time" for Britain to take the "enormous economic gamble".As a result, he said it would be the "very worst time" for Britain to take the "enormous economic gamble".
The UK will hold a referendum on on 23 June on whether to retain its EU membership or to leave.The UK will hold a referendum on on 23 June on whether to retain its EU membership or to leave.
Lord Howard, who led the Tories between 2003 and 2005, when he was a close political ally and mentor of Mr Osborne and Mr Cameron, said it was not the PM's fault he had not been able to secure "fundamental and far-reaching reform" of the EU.Lord Howard, who led the Tories between 2003 and 2005, when he was a close political ally and mentor of Mr Osborne and Mr Cameron, said it was not the PM's fault he had not been able to secure "fundamental and far-reaching reform" of the EU.
He blamed EU leaders for imposing a "rigid straightjacket of uniformity" across the continent.He blamed EU leaders for imposing a "rigid straightjacket of uniformity" across the continent.
He told Radio 4's Today programme that, as the world's fifth largest economy, the UK would prosper outside the European Union, arguing that "the Germans would still want to carry on selling us their BMWs and the French would still want to carry on selling us their wine".He told Radio 4's Today programme that, as the world's fifth largest economy, the UK would prosper outside the European Union, arguing that "the Germans would still want to carry on selling us their BMWs and the French would still want to carry on selling us their wine".
'Market access''Market access'
"So it is in everyone's interest to want to have an agreement that allows each of us to have access to each other's markets.""So it is in everyone's interest to want to have an agreement that allows each of us to have access to each other's markets."
Lord Howard rejected suggestions that negotiating a trade-based relationship with the EU, similar to that which Norway and Switzerland have, would leave the UK with the "worst of all worlds" - with reduced access to the single market but still bound by a lot of EU rules and regulations.Lord Howard rejected suggestions that negotiating a trade-based relationship with the EU, similar to that which Norway and Switzerland have, would leave the UK with the "worst of all worlds" - with reduced access to the single market but still bound by a lot of EU rules and regulations.
"Norway is a country of five million people. We are a country of 65 million people. We won't have Norwegian-style agreement with the EU, we will have a British style agreement."Norway is a country of five million people. We are a country of 65 million people. We won't have Norwegian-style agreement with the EU, we will have a British style agreement.
"We need a bit of self-belief and national self confidence. We are a great country - everyone wants access to our market. We won't be supplicants.""We need a bit of self-belief and national self confidence. We are a great country - everyone wants access to our market. We won't be supplicants."
If the UK voted to leave, he suggested it could force EU leaders into negotiating a "different" kind of agreement with the UK, which could then be put to voters in a second referendum - a sequence of events that has been rejected by Mr Cameron as "for the birds".If the UK voted to leave, he suggested it could force EU leaders into negotiating a "different" kind of agreement with the UK, which could then be put to voters in a second referendum - a sequence of events that has been rejected by Mr Cameron as "for the birds".
'Not parlour game''Not parlour game'
Lord Howard also said there was no reason why Mr Cameron should have to step down if the UK voted to leave, arguing that a leadership contest would be a "distraction" in such circumstances.Lord Howard also said there was no reason why Mr Cameron should have to step down if the UK voted to leave, arguing that a leadership contest would be a "distraction" in such circumstances.
"I am absolutely confident that David Cameron could stay on and I think he should stay on. I think he would accept the verdict of the country. If there were to to be a second negotiation, I hope be very happy for him to be in charge of it and if we had to negotiate departure, I would be very happy for him to negotiate that too.""I am absolutely confident that David Cameron could stay on and I think he should stay on. I think he would accept the verdict of the country. If there were to to be a second negotiation, I hope be very happy for him to be in charge of it and if we had to negotiate departure, I would be very happy for him to negotiate that too."
Mr Osborne said talk of leaving the EU was "not some political parlour game", highlighting the recent fall in the value of the sterling to illustrate his point,Mr Osborne said talk of leaving the EU was "not some political parlour game", highlighting the recent fall in the value of the sterling to illustrate his point,
"This is about people's jobs and their livelihoods and their living standards, and in my judgement as chancellor leaving the EU would represent a profound economic shock for our country, for all of us and I'm going to do everything I can to prevent that happening.""This is about people's jobs and their livelihoods and their living standards, and in my judgement as chancellor leaving the EU would represent a profound economic shock for our country, for all of us and I'm going to do everything I can to prevent that happening."
Mr Cameron will highlight the economic case for membership on a visit to Wales as he continues to tour the UK campaigning to stay in the 28-member bloc.Mr Cameron will highlight the economic case for membership on a visit to Wales as he continues to tour the UK campaigning to stay in the 28-member bloc.
He will tell voters that nearly half of Welsh trade is with the EU and the nation will be "better off" if the UK remains in.He will tell voters that nearly half of Welsh trade is with the EU and the nation will be "better off" if the UK remains in.