EU wants 'fair deal' with Britain on membership, says Juncker

European Commission chief Jean-Claude Juncker on Thursday said the European Union wants a “fair deal” with Britain over its membership in the bloc as Prime Minister David Cameron attempts to negotiate reforms.

Juncker said the Commission was looking for other options than those proposed by Cameron and was convinced it would find a solution.

"We want a fair deal with Britain and this fair deal has to be a fair deal with other countries," Juncker told a briefing in Brussels.

"We'll enter the concrete and vital phase of negotiations with our British colleagues. The Commission is ready to look for other options than the single one (the benefits cap) proposed by the British prime minister and I'm quite convinced that we will find a solution to that highly complicated question."

Cameron is renegotiating the terms of Britain’s EU ties ahead of a referendum on its membership which he promised would be held by the end of 2017. The Prime Minister has expressed his desire for the Britain to remain in the EU but wants changes on policy including a crackdown on benefits to migrants.

Britain faces £11bn in new tariffs if it leaves the EU and does not get a free trade agreement, according to research from Lord Rose, who heads Britain Stronger in Europe. The report suggested that British consumers and businesses would be hit by higher costs as the nation would have to start trading with the EU using World Trade Organisation rules.