Europe returns to stalk Tories

Philip Whyte, senior research fellow at the Centre for European Reform, blamed Europe for the rise in Tory euroscepticism, which has so far been kept in check by their coalition partners, the pro-European Liberal Democrats. He cited financial services regulations which appear to specifically target Britain, such as tough new rules on hedge funds - 80 percent of the industry is based in London - and the proposed new financial transaction tax. "If the EU continues to stir the increasingly eurosceptic backbench on the Tory party, Europe could become a very divisive point for the coalition itself and it could also become a very awkward subject for Cameron," he said.