Greater unity is good for euro... but leave us out, says David Cameron

David Cameron gave his blessing to new moves to harmonise tax and economic policy inside the troubled euro zone — providing Britain can stay out.

The Prime Minister used a summit at No 10 with the French premier to indicate he would not oppose a further round of integration, with Britain staying firmly on the outside.

He said: "We understand that if you're in a single currency you do need to take steps to better co-ordinate and harmonise. That was one of the reasons why I never wanted to join the euro in the first place."

Standing alongside French premier François Fillon, who has called for more integration inside the euro zone, Mr Cameron today sought to reassure Eurosceptic MPs that he would not let Britain get sucked into costly new bail-out plans or economic policy co-ordination.

"We want the countries of the eurozone to sort out the difficulties and problems that they have and we won't stand in the way," he said. "That does not mean that Britain should be drawn in to new mechanisms or new procedures or have to give up new powers."

But there was alarm among Eurosceptic MPs and MEPs. Labour MP Gisela Stuart hit out in a tweet: "UK needs to help France to save the euro. Oh no we don't." And Tory MEP Daniel Hannan branded it a French attempt to "drag Britain into someone else's troubles".

Former Tory cabinet minister John Redwood said: "It is important that the euro countries sort themselves out. But it is equally important that Britain does not have to pay for it."

Mr Fillon, an Anglophile married to a Briton, arrived saying that Europe was at "an historic turning point" following the turmoil hitting the euro.

He urged: "In order to consolidate the euro we will need gradually to harmonise our economic, fiscal and social policies, hence we are going to go towards greater integration." He said Britain would suffer "catastrophe and a disaster" if the European single currency failed.