Tories to reverse UK's 'shrinking' clout says Hague

Mr Hague said Europe would not be an immediate priority for the Tories

The Conservatives have pledged to reverse what they say is the UK's "shrinking" influence in the world.

Shadow foreign secretary William Hague said the UK's economic and diplomatic clout had fallen under Labour and the UK risked "retreating into its shell".

In a speech in London, he promised "close" ties with the US if the Tories win power, and tougher action on Iran.

Earlier Mr Hague said he would not seek an "instant confrontation" with the EU despite concerns about its direction.

In an interview with the Financial Times, he said the Conservatives had made "a strategic decision" not to start an immediate row over Europe because its priority would be dealing with the UK's budget deficit.

"We have enough on our hands without an instant confrontation with the EU," he told the paper.

The issue of Europe proved highly divisive during the last Conservative term in power, under John Major, which ended in 1997.

'Diminished influence'

In a speech to the Royal United Services Institute, Mr Hague argued the UK's economic status was "diminishing" under Labour and the UK risked dropping out of the list of the world's top ten economies by 2015.

He said early action to cut the budget deficit - set to reach £178bn this year - was needed not only at home but to help the UK to better "project" its influence abroad.

With our economic prestige undermined, our reputation for delivering on our undertakings tarnished, our international profile shrunk, the need for change is clear William Hague

"Our ability to undertake economic modernisation will be critical to Britain's future influence," he said.

"But the change, the modernisation, our economy needs is not guaranteed.

"If our opponents' mistaken arguments and mistaken principles prevailed Britain will move backwards towards a Seventies-style model, with a bigger say for the trade unions who want to impose rigidity and unaffordable regulation across the public and private sector."

As pre-election campaigning before the expected 6 May poll continues, he added: "With our economic prestige undermined, our reputation for delivering on our undertakings tarnished, our international profile shrunk, the need for change is clear."

Setting out the key themes of the party's foreign policy should it win power, he said he would "work closely" with the US but reserve the right to be "frank" when he thought the two countries' interests diverged.

On Iran, he said the UN and EU must be prepared to taken a much tougher line over Tehran's nuclear plans by imposing an arms embargo and a ban on oil and gas investment.

EU relationships

As for Europe, Mr Hague said the Tories would seek to play a constructive role on issues such as trade, the environment and energy security despite their opposition to the Lisbon Treaty which created the new post of European president last year.

"It remains our view that the denial of a referendum was an appalling breach of faith with the voters," he said.

"But whatever our disagreements on that Treaty, we intend to maintain and value the bonds of our relationships with our European partners."

Ahead of the election, Eurosceptic party members are calling for a hard line stance on the EU, arguing that it is a bloated and ineffective organisation, which undermines national sovereignty.

Labour said the Conservatives would marginalise the UK in Europe and the country would lose influence internationally as a result.

"The Conservatives' willingness to isolate Britain on the world stage would make achieving crucial foreign policy goals much more difficult," said Europe minister Chris Bryant.

"The Conservatives continue to obsessively put their Eurosceptic agenda ahead of the interests of British businesses and are also prepared to threaten the vital work we do with our European allies on defence issues."