Welsh Labour MEP Derek Vaughan has responded to David Cameron's speech.
"David Cameron is playing a dangerous game, gambling the national interests of Wales and the rest of the UK simply to placate embittered right wingers within his own party and outside.
He is creating unnecessary uncertainty, damaging confidence in our economy at the worst possible time and putting at risk jobs, growth, inward investment and billions of pounds worth of valuable EU Structural Funding.
His willingness, like John Major, to be led by unruly Tory backbenchers on Europe is weakening our influence in the EU and our ability to shape its future. We need to be fully engaged, leading a reforming and constructive policy agenda, but instead it seems that the Prime Minister is more interested in grandstanding than in addressing important issues such as unemployment, crippling austerity and an economy approaching a triple dip recession."