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Farage: 'Fudged referendum on EU is no good'

2 July 2012 Last updated at 10:25 BST

Prime Minister David Cameron has suggested there could be a referendum after the next election on the UK's position in Europe.

Former defence secretary Liam Fox has given a speech urging the UK to negotiate a looser relationship with the EU and be willing to leave, if no deal can be made.

The leader of the UK Independence Party, Nigel Farage said the argument was now ''overwhelming'' to have trade relationship with Europe but not to be part of the political union.