Vince Cable to urge PM to avoid 'dangerous EU gamble' 17 January 2013 Last updated at 03:40 It would be a "dangerous gamble" to try to renegotiate powers from Brussels, Business Secretary Vince Cable is expected to warn David Cameron. In a speech later, Mr Cable will recognise that "far-reaching reform" of the EU institutions is needed. But the Lib Dem MP will warn that Mr Cameron's policy on Europe could make it harder to "safeguard UK national interests in the single market." Meanwhile, Labour is set to accuse the PM of "sleepwalking" towards EU exit. The comments precede a long-awaited speech from Mr Cameron on the UK's relationship with Europe, due on Friday. According to pre-released extracts of Mr Cable's speech, to be delivered to businessmen in Oxfordshire, the business secretary will say there is a need to address a "democratic deficit of popular disenchantment" about EU membership in the UK. Lance the boil A referendum could "lance the boil" of misconceptions about the EU, he will say. But he will add: "It will be difficult enough to safeguard UK national interests in the single market in an environment where the UK stands aside from closer economic and political integration in the eurozone. We have a prime minister who simply cannot reconcile the demands of his party with the needs of his country It could become next to impossible if the UK is simultaneously seeking to disengage from substantial existing commitments, especially if we are perceived to be blocking closer integration in projects we are not part of. The Eurosceptic calculation is that British permission is necessary for closer integration - via treaty change - and that this permission can be traded for the negotiating objectives. That seems to me a dangerous gamble to make. There are many in Europe, notably in France, who would be happy to see the back of the UK - whatever that may mean in practice - and even the UK's allies on market reform - notably Germany - have limited political capital to spend getting a more favourable arrangement for the UK. Others are understandably concerned that special treatment for Britain could lead to a host of other demands by member states with specific problems and risk paralysis. In a separate speech, also due later, shadow foreign secretary Douglas Alexander will argue that the "real tragedy" of Mr Cameron's speech is that his party "won't let him address the undoubted need for change in the EU in a sensible way." Too weak "We have a prime minister who simply cannot reconcile the demands of his party with the needs of his country," Mr Alexander will say. The gap between the minimum the Tories will demand and the maximum our European partners can accept remains unbridgeable. The Labour MP is expected to argue that many Conservatives want a referendum, not to "secure consent" for a fresh settlement as Mr Cameron has said, but rather: "It is about securing exit." The prime minister, he will conclude, is "sleepwalking towards exit, knowing he is letting down the national interest, but too weak to do anything about it." Meanwhile, a group of about 25 Conservative MPs has written to Mr Cameron urging him to present a "positive British vision for leadership in Europe." We are concerned that an over-emphasis in your speech on renegotiation and a referendum rather than leadership could undermine the single market. The UK has potential allies on many key issues, even on the merits of repatriating some powers," they wrote. We fear that a renegotiation which seems to favour the UK alone would force other capitals to ask why they cannot simply dispense with those parts of the single market that don't suit them.