Cameron performs European high-wire act

By Adrian Croft - Analysis

LONDON (Reuters) - Conservative leader David Cameron performed a balancing act in a speech on Wednesday, trying to be tough enough to placate party members hostile to the European Union without alarming continental partners.

Cameron's Conservatives are strong favourites to return to power after a dozen years in opposition in an election that must be held by next June.

EUROSCEPTIC ANGER

The Conservative leadership angered hardline Eurosceptics in the party, implacably opposed to what they see as the march towards a European super-state, on Tuesday by dropping a pledge to hold a referendum on the European Union's Lisbon treaty.

Party leaders say the referendum promise is no longer realistic after Czech President Vaclav Klaus became the last EU leader to sign the Lisbon treaty, which is designed to reform EU decision-making and make the bloc a force on the world stage.

WHAT CAMERON WANTS

Cameron said the Conservatives would seek the return of some powers, in the areas of social and employment rights and criminal justice, but indicated the party would be in no hurry to do so and said it could take four or five years.

He stressed that a Conservative government would be an active member of the 27-nation bloc and his goal was not to sabotage the EU.