UK Has Better Economic Prospects in EU, Says Government

But that doesn't mean it can't negotiate more independence

The economic benefits of Britain's European Union membership outweigh the loss of independence on policy, the government said on Monday in a review that will underpin Prime Minister David Cameron's plan to renegotiate EU ties and hold a referendum.

Cameron rattled many business leaders, EU members and wider trading partners in January when he promised to claw back powers from Brussels and hold a vote by 2017 on whether to stay inside the 28-nation bloc or leave.

His flagship policy has raised the prospect of Britain leaving its main trading partner after 40 turbulent years marked by arguments about the nature of London's relationship with its European neighbors.