UK Conservative party leader David Cameron and Czech Prime Minister-designate Mirek Topolanek have founded the Movement for European Reform - signed a joint declaration proposing a new centre right group of MEPs.
Here is the full text of Mr Cameron's statement:
In my leadership election campaign, I made a number of promises.
The group will be established after the European elections in 2009
I said that if elected, I would lead my party as a consistent Conservative.
That under my leadership, we wouldn't say one thing in London and another in Brussels.
I said that meant leaving the EPP - the European People's Party - in the European parliament.
The reason is simple. It is that while we agree about open markets and deregulation, we don't share their views about the future development of Europe.
So today, I am fulfilling that pledge that I made in the election.
With our close allies, the Czech Civic Democratic Party, and their leader, Prime Minister-designate Mirek Topolanek, I can announce the creation of a new European political grouping.
Our partners have asked that we create this new parliamentary group at the beginning of the next European parliament in 2009.
And so that is what we will do.
The joint declaration that Mirek and I will sign together today commits us to that course.
This agreement will help build the strength of the centre-right in Europe, because instead of being, if you like, reluctant room-mates of the EPP, we can now operate as friendly neighbours, working together when we agree, but within our own distinctive political grouping.
We are also announcing today a new Movement for European Reform open to parties across Europe.
Let me read you the agreement that we will sign after Mirek has made his statement.
'As the leaders of the Conservative Party of the United Kingdom and the Civic Democratic party of the Czech Republic we jointly declare:
'That together with other like-minded parties of other nations, including both existing and candidate members of the European Union, we will found the Movement for European Reform, dedicated to the ideals of a more modern, open, flexible and decentralised European Union, ready to face the challenges of the 21st century and;
'Second, that at the commencement of the next legislature period of the European Parliament, following the elections in 2009, our elected members will establish a new parliamentary group, which other like-minded parties will be invited to join, and whose purpose will be to give leadership and representation to these ideals.'
Let me tell you exactly why we need this new parliamentary group and a new movement for European reform.
It is time to drive forward a new agenda in Europe - looking outwards to the world, flexible, competitive; ready to face the challenges of globalisation and the 21st Century.
The environment doesn't respect national boundaries and it is right that the EU should take a lead. Yet we are failing to meet that challenge.
Europe's Kyoto target is to reduce carbon emissions by 8% by 2012. But with just six years to go, carbon emissions are down by less than 1%.
Twelve member states have actually gone backwards and increased their emissions.
The EU as a whole is set to miss its Kyoto target. That is not good enough and it's got to change.
Last year the EU made helping lift Africa out of poverty a priority.
But many of the EU's policies are making poverty in developing countries worse.
The EU remains committed to a largely unreformed CAP, an economic and humanitarian disaster which pushed up food prices for the poorest people in Europe and helps lock the developing world in poverty.
And the EU still has higher trade barriers against poor countries than it does against rich.
That's not good enough and it needs to change.
The EU has not had its accounts signed off for 11 years in a row. The Commission continues to use an accounting system that the EU's former Chief Accountant says is wide open to fraud.
If a company director failed to sign off accounts for 11 years, they would probably be heading for jail.
That is not enough good enough and that has to change.
In the early '90s, Labour MPs said it was unacceptable and an irresponsible waste of money to have two European parliaments and to spend £120m a year traipsing between Brussels and Strasbourg.
Tony Blair himself used to say that shuttling to and from Strasbourg should go. Most MEPs think it should go.
Governments from most other member states think it should go and have argued about it for 20 years, and it is still happening. That's not good enough.
In 2000, Europe's leaders said they would make the EU the most competitive knowledge-based economy in the world by 2010.
EU politicians repeated that call for reform in 2002, 2003, 2004 and 2005. Since 1998, new EU regulations have cost business £37bn.
In the modern global economy, we simply cannot afford this.
The European Commission says that the EU's share of world output is set to fall by almost half to 10%.
As Digby Jones has said, India and China will eat Europe for lunch if we are not careful.
So we will be the champions for real change in Europe.
We will be a strong new voice for change, for optimism and for hope. We are a new generation.
We have no time for the culture of hopelessness that has plagued the way the EU addresses the big global challenges that we face.
It's because we want to see a future for the EU and believe in a strong Europe that we want to make the EU confront its failings.
We refuse to accept failure as Tony Blair does.
We want to win the arguments, build support and get things done. That is why we are starting today with the creation of our new group and our new movement.
Ours is a manifesto for change. No more hand-wringing, no more standing still while the world moves on. We want a Europe not of backroom deals but of bright ideals.
We are proud, confident and ambitious as Europeans. There is now a future for the moderate mainstream majority in Europe and so I hope others will come and join us.
We have a future to fight for.