"If the UK is isolated and marginalised within the EU, our influence in the world will shrink. That is not good for jobs and growth; and will do nothing for struggling families across the country," says Nick Clegg
"Some member states and the eurosceptics in the Conservative Party both refused to compromise. That put us in a difficult position. Some guarantees on the operation of the single market, including in financial services, was necessary if we were going to ensure the safe passage of the package through Parliament. I regret the negotiations failed to arrive at a compromise, as I had hoped.
"It is important that we now look to the future. That's why I, as a Liberal Democrat in this Coalition Government will do everything I can to make sure that this setback does not become a permanent divide. I am determined that we redouble our leadership on things like the single market, the environment, foreign policy, and defence - all the things that we need to do at a European level.
"All my political life I have believed that Britain is stronger, better, greater when we lead and when we stand tall in Europe. Now, more than ever, we need a strong Liberal Democrat voice inside government making this case."
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