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.

From Caesar's legions to the Napoleonic wars. From the Reformation, the Enlightenment and the industrial revolution to the defeat of nazism. We have helped to write European history, and Europe has helped write ours.

The political system is broken, the economy is broken and so is society. That is why people are so depressed about the state of our country.

I want the European Union to be a success. And I want a relationship between Britain and the EU that keeps us in it.

More of the same will just produce more of the same - less competitiveness, less growth, fewer jobs.

We have the character of an island nation: independent, forthright, passionate in defence of our sovereignty. We can no more change this British sensibility than we can drain the English Channel. And because of this sensibility, we come to the European Union with a frame of mind that is more practical than emotional.

There are some people who seem to think that the way you reduce the cost of living in this country is for the state to spend more and more taxpayers' money. It is as if somehow you measure the compassion of the government by the amount of other people's money it can spend.