DAVID CAMERON

In a global race, can we really justify the huge number of expensive peripheral European institutions? Can we justify a commission that gets ever larger? Can we carry on with an organisation that has a multibillion pound budget but not enough focus on controlling spending and shutting down programmes that haven't worked?

If we left the European Union, it would be a one-way ticket, not a return. So we will have time for a proper, reasoned debate. At the end of that debate you, the British people, will decide.

I don't just want a better deal for Britain. I want a better deal for Europe too. So I speak as British prime minister with a positive vision for the future of the European Union. A future in which Britain wants, and should want, to play a committed and active part.

Yes, America must do the right thing, but to provide moral leadership, America must do it in the right way, too.

I don't want to be Prime Minister of England, I want to be Prime Minister of the whole of the United Kingdom.

You will feel the full force of the law and if you are old enough to commit these crimes you are old enough to face the punishments. And to these people I would say this: you are not only wrecking the lives of others, you are potentially wrecking your own life too.

But we will say something else. That for far too long in this country, people who can work, people who are able to work, and people who choose not to work: you cannot go on claiming welfare like you are now.

I watched, for the 17th and hopefully the last time, The 'Guns of Navarone' on New Year's Eve. I always watch just in case the explosives don't go off in the end. You have to watch the end, just to make sure it's OK.

We cannot go on as we are with 2.6 million people on incapacity benefit, 500,000 of them are under 35. Are we really saying there are half a million people in this country under 35 who are simply too ill to work? I don't think that's right.

I think we need to just be very clear about what we're trying to do in Afghanistan. Frankly, we're not trying to create the perfect democracy. We're never going to create some ideal society. We are simply there for our own national security.

I am not a British isolationist. I don't just want a better deal for Britain. I want a better deal for Europe too.

Half a century ago, the amazing courage of Rosa Parks, the visionary leadership of Martin Luther King, and the inspirational actions of the civil rights movement led politicians to write equality into the law and make real the promise of America for all her citizens.

Cap the well, yes. Clear up the mess, yes. Make compensation - yes, absolutely. But would it be right to have legislation that independently targets BP rather than other companies? I don't think that - would be right.

It does not seem to me that the steps which would be needed to make Britain - and others - more comfortable in their relationship in the European Union are inherently so outlandish or unreasonable.

I mean, I'm a conservative. I believe that, you know, if you borrow too much, you just build up debts for your children to pay off. You put pressure on interest rates. You put at risk your economy. That's the case in Britain. We're not a reserve currency, so we need to get on and deal with this issue.

We will say to people that if you can work, and if you want to work, we will do everything we can to help you. We will give you the training, we will give you the support, we will give you the advice to get you going and get you back at work.

On the one hand we have got to ask, are there some areas of universal benefits that are no longer affordable? But on the other hand let us look at the issue of dependency where we have trapped people in poverty through the extent of welfare that they have.

The EU must be able to act with the speed and flexibility of a network, not the cumbersome rigidity of a bloc. We must not be weighed down by an insistence on a one size fits all approach which implies that all countries want the same level of integration. The fact is that they don't and we shouldn't assert that they do.

2012 has been an extraordinary year for our country. We cheered our Queen to the rafters with the Jubilee, showed the world what we're made of by staging the most spectacular Olympic and Paralympic Games ever and - let's not forget - punched way above our weight in the medals table.

If you can work and if you're offered a job and you don't take it, you cannot continue to claim benefits. It will be extremely tough.

Britain is not in the single currency, and we're not going to be. But we all need the eurozone to have the right governance and structures to secure a successful currency for the long term.

I believe something very deeply. That Britain's national interest is best served in a flexible, adaptable and open European Union and that such a European Union is best with Britain in it.

When you're taking the country through difficult times and difficult decisions you've got to take the country with you. That means permanently trying to make the argument that what you're doing is fair and seen to be fair.

Christmas gives us the opportunity to pause and reflect on the important things around us - a time when we can look back on the year that has passed and prepare for the year ahead.

Today, hundreds of millions dwell in freedom, from the Baltic to the Adriatic, from the Western Approaches to the Aegean. And while we must never take this for granted, the first purpose of the European Union - to secure peace - has been achieved and we should pay tribute to all those in the EU, alongside Nato, who made that happen.