UK referendum on EU membership could come before end of 2017

On Tuesday a spokesman for Prime Minister David Cameron said that a referendum on the country’s continued membership of the European Union (EU) could be held before the end of 2017.

If we can do it earlier, we will

"There has been no change in the position," his spokesman said. "If we can do it earlier we will."

The statement came days after business leaders urged the recently re-elected Tories to begin campaigning to keep the UK inside the EU.

I really hope the PM will keep the UK European, united

Former president of the European Union Jose Manuel Durao Barroso also displayed faith in Cameron's ability to keep the country inside the Union.

“I really hope that the Prime Minister will be able to not only keep the United Kingdom united - as happened with the referendum with Scotland - but also keep it European, united,” Barroso said.

Read more: Ex-EU president Barroso says Cameron should defend Britain's place in EU

Downing Street insisted that what the PM wants is to change some terms in the EU treaty, especially those referring to welfare.

"He will set out some further details to EU colleagues at the end of the June EU council," the spokesperson said. "He may well have the opportunity to have some preparatory discussions for that in bilateral meetings ahead of that as well."

Market view

A Brexit would pose serious risks to the UK economy

RBS analysts believe a “Brexit” “would pose serious risks to the UK economy by endangering its status as Europe’s finance and services hub and weakening its ties to its largest trading partners."

On Tuesday morning they reminded clients that 54% of the country’s trade in 2013 was carried out with its partners on the other side of the Channel. Therefore, the UK would face big challenges in order to renegotiate free trade agreement with its current partners.

They added that the UK is heavily dependent on inflows of overseas capital to finance its 5.5% of GDP current account deficit and "an EU referendum – and in particular leaving the EU – could jeopardise" its ability to finance it.

You may also enjoy reading:

Majority of businesses, Tony Blair want UK to stay in the EU

UK businesses support EU referendum, insists energy minister