"Frankly what matters this week is the Conservative party not looking inwards and having fights," he continued, "but the prime minister looking outwards, arguing for Britain, arguing for Britain's interests, arguing for the decisive steps that Europe needs to take."

The comments come as Downing Street rejected Iain Duncan Smith’s suggestion of a European Union referendum, insisting the Government is under no obligation to hold a public vote on Franco-German moves to create a “fiscal union”.

Mr Duncan Smith, the Work and Pensions Secretary, suggested on Sunday that any major change in the EU treaties in response to the eurozone debt crisis should be put the British people.

The Prime Minister’s Official Spokesman today said Mr Duncan Smith's interpretation of the law was incorrect.