Tories want outward-looking EU

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The European Union has lost its way by focusing on political aims rather than economics, the shadow chancellor says.

George Osborne, in a speech on European reform, said the EU needs a "complete change of direction".

He criticised EU leaders for failing to realise that they needed to address competition within the EU as well as with the rest of the world.

His speech comes ahead of Tory leader David Cameron and the Czech PM pushing for a more outward-looking Europe.

The leaders' launch is part of a "new agenda" for the Movement for European Reform.

Labour failure

Mr Osborne said of Europe: "It needs to work out how to use the political institutions of the EU to help. That requires a 180 degrees change in thinking.

"For throughout its life, the EU has done the reverse: it has used economic means for political ends."

As well as criticising European leaders, Mr Osborne said Labour had failed to deliver the UK to the "heart of Europe".

"The European policy pursued by Tony Blair, Gordon Brown and a clutch of foreign secretaries has been a total failure," with other European finance ministers repeatedly calling on the chancellor to reform.

Increasing contributions to the EU budget and rising agriculture and textile tariffs were highlighted as damaging for the UK by Mr Osborne.

Practical goals

"We know the chancellor's delivered the sermons about reform. Where is the evidence that anyone in Europe has taken the slightest bit of notice. Foreign policy is about results. Gordon Brown has achieved none," he said.

The EU should instead focus on practical goals suggested by the Conservatives.

Mr Osborne said these included driving free trade within the EU as well as externally and reforming the Common Agricultural Policy.

He also said it was important to "reclaim control over issues of social legislation"; and succeed in areas "where [the EU] should be working together - like the environment."