EU treaty 'in Britain's interests'

In his penultimate appearance at the despatch box, Mr Blair said the new treaty would allow the EU to focus on the issues which really mattered.

Amid noisy scenes in the Commons, he told MPs: "Over the past ten years Britain has moved from the margins of European debate to the centre. This is absolutely right for Britain."

And he added: "Britain has for a decade been in a leadership position in Europe. That is exactly where we should stay."

But Conservative leader David Cameron said Mr Blair had sanctioned the transfer of powers from Britain to Brussels "without the permission of the British people". To loud Tory cheers, he added: "This will be remembered as one of the most flagrant breaches of any of the promises you have made."

The new treaty, agreed by Mr Blair after marathon negotiations in Brussels at the weekend, is designed to streamline Europe's structures and allow it to function with an expanded membership of 27. Opponents claim the agreement has given away crucial elements of British sovereignty and fear the EU will have a powerful president and the legal status to sign treaties in its own right.

However, both Mr Blair and his successor Gordon Brown insist a referendum is not required because Britain's "red lines" - control over human and social rights, foreign policy and tax and benefits - had not been crossed.

Tories renewed calls for a referendum after Irish foreign minister Dermot Ahern said it was "likely" that a public vote would be held there. Mr Blair had pledged to hold a vote on the constitution but UK ministers claim the changes included in the Reform Treaty are not significant enough to warrant one.

Updating MPs about the negotiations, Mr Blair insisted the "red lines" had not been ceded, but faced catcalls of "surrender" from Tories. Flanked by Mr Brown and Harriet Harman, he argued: "For too many years, we have been bogged down in a debate about institutions. Change is essential, with the increase from 15 to 27 states.

"But with this agreement we can now concentrate on issues that really matter: energy security, organised crime and terrorism, globalisation, further enlargement, and making Europe's voice more effective internationally. This agenda is surely quintessentially one in Britain's interest."