German Chancellor Angela Merkel delivered a European Union charm offensive yesterday at a select love-in of MPs and peers in Parliament.

Ms Merkel offered a staunch defence of the EU's record in delivering "almost half a century of peace, freedom and prosperity" and said that the 28-nation bloc - battered by the economic crisis and the instability of the euro - can still serve as "a model for other regions of the world."

But in an attempt to head off discontent at Britain's membership of the EU and Prime Minister David Cameron's shallow attempts to appease opposition by threatening workers' rights, the Christian Democrat chancellor said that she recognised the need for change and suggested that differences between Westminster and Berlin may amount to no more than "details."

Ms Merkel also accepted the need to deal with "mistakes" in the policy of free movement of EU citizens and said that "unnecessary red tape" needed to be subject to regular reviews

But the No2EU party slammed her speech to selected guests as proof of Mr Cameron's complicity in creating a "corporate monster" state.

In a withering attack on the speech No2EU spokesman Brian Denny said it was time that EU values and interests were properly called into question given the EU-related upheaval in Ukraine.

He said: "David Cameron is completely committed to the intensification of European unification with the German political elite.

"The recent events in Ukraine show the Con-Dems and German ruling class are as one over creating an imperialist empire.

"It's time for the EU to go."