Cameron Hints At Europe Referendum

The Prime Minister has opened the door to a referendum on Europe - saying the British people should have their say.

Speaking in Rio de Janeiro in Brazil, David Cameron told Sky News there would be an opportunity to renegotiate Britain's relationship with Europe and the changes should have the public's consent.

"The fact is Europe is changing and changing rapidly. The eurozone of 17 countries with one currency. I believe that one day they are going to move towards one economic policy.

"We are not going to be part of that and I think that will provide over time opportunities for a new settlement between Britain and Europe.

"When we achieve that new settlement I think we will be able to seek fresh consent from the British people. I will be setting that out in the autumn before the end of the year. I think that is the way the country wants to go and that is the way we should go, safeguarding Britain's interests."

"A new settlement and a fresh consent from the British people, that is what I believe we need."

Mr Cameron also admitted the Andrew Mitchell affair has been damaging.

The Chief Whip is in hot water for swearing at a Downing Street policeman - but has denied police reports he called him a pleb.

The PM said: "Andrew Mitchell has apologised. It is right that he apologised. This should never happen again. The police have said they are not going to take this any further and that is how we should leave it."

The PM is leading a 58-strong UK trade delegation during the visit to Brazil. The UK Government hopes it will help strengthen trade with the key emerging economy, the sixth largest in the world.

He is meeting President Dilma Rousseff in the capital Brasilia to talk about the country's growing energy sector.

He also hopes to secure business contracts around the 2014 World Cup and the 2016 Olympic Games - both which will be held in Rio.

Earlier in the trip, the PM admitted he was "unpopular".

Asked about it by Sky News, he said: "What I'm doing is what is vital for Britain which is linking us to the fastest-growing economies in the world. We have taken difficult decisions, we have had to make tough cuts to get our deficit down."

He also pledged to stick behind universal benefits, which is he under pressure to review: "I made a promise at the last election about pensioners' benefits, about free bus passes about television licences and winter fuel. I made that promise and I am going to keep that promise."