Brown says Britain must remain engaged with Europe

By Adrian Croft and Katherine Baldwin

LONDON (Reuters) - Prime Minister Gordon Brown, often accused of being lukewarm towards the European Union, said on Monday it would be a mistake to question Britain's EU membership at a time of global economic problems.

Recent financial turbulence was "a wake-up call" for every economy and had tested the stability of financial systems, Brown told an audience of business leaders in London.

Britain is well placed to withstand the global turbulence expected this year because it has low inflation and interest rates, record high employment and the public finances are "in a sustainable position", Brown said.

"What is clear is that at this time of global economic uncertainty, we should not be throwing into question our future membership of the EU -- risking trade, business and jobs."

"I strongly believe that rather than retreating to the sidelines we must remain fully engaged in Europe so we can push forward the reforms that are essential for Europe's, and Britain's, economic future," he said.

Brown said the EU must work together to take any immediate necessary measures to protect against financial turbulence.

He confirmed he would meet French President Nicolas Sarkozy, German Chancellor Angela Merkel and Italian Prime Minister Romano Prodi later this month to discuss stability measures.

His remarks were seen as a riposte to views aired by opposition Conservative leader David Cameron on Sunday, though critics said his own commitment to Europe had been thrown into doubt last month by his late arrival in Portugal to sign the EU Lisbon Treaty.

Cameron said on Sunday he wanted Britain, rather than Brussels, to decide on its social and jobs policy and suggested that a future Conservative government might try to reopen the Lisbon treaty even if every EU state had ratified it by then.

GOVERNMENT BLUNDERS

Brown's government is struggling to find a rescuer for stricken mortgage lender Northern Rock, a casualty of the global credit crisis, and is under pressure over a series of blunders.

One poll on Sunday showed the Conservatives extending their lead over the ruling Labour Party to 10 percentage points, though Brown does not have to call an election until 2010.

Brown, who will meet Sarkozy, Merkel and Prodi on January 29, said more must be done to "ensure continued stability and to strengthen and deepen economic reform in Europe."

Now that the Lisbon Treaty has been signed, Europe must focus on stability, growth, competitiveness and jobs, he said.

Britain's parliament is set for a battle in the next few months on whether to ratify the treaty.