Cameron to deliver EU speech in the Netherlands this Friday

Downing Street confirms a date for the PM's long-delayed speech on "the future of the EU and the UK's relationship with it".

After months of speculation, Downing Street has finally confirmed a date for David Cameron's EU speech. The PM will deliver his long-delayed address on "the future of the EU and the UK's relationship with it" in the Netherlands this Friday. Cameron originally intended to give the speech on 22 January but was forced to change the date after Angela Merkel's office complained that it clashed with celebrations to mark the 50th anniversary of the Élysée Treaty (or Treaty of Friendship) between France and Germany.

Tory MPs were promised an address from Cameron on Europe as long ago as last June but when the speech failed to materialise, this was changed to "before Christmas". When this deadline too was missed, Cameron ill-advisedly remarked at a press gallery lunch in Westminster: "Thanks for reminding me that my Europe speech remains as yet unmade. This is a tantric approach to policy-making: it’ll be even better when it does eventually come."

The PM has now raised expectations so high that he will struggle to meet them. It is clear that Cameron will pledge to seek the repatriation of powers from the EU before offering voters a choice between this "new settlement" and withdrawal in a referendum midway through the next parliament. But to satisfy Tory MPs he will also need to show that he has a plan ready if other EU members refuse to play ball.

David Cameron leaves Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.