The case for pooling more UK sovereignty inside the EU has been strengthened by the events of September 11, Tony Blair will say tomorrow.

His Birmingham speech will be regarded as setting the pace for a referendum on euro membership and public preparation for plans to give up Britain's power of veto in new policy areas during a review of EU decision making to be launched next month.

Writing in the Independent, foreign secretary, Jack Straw, says: "In a world where states and the interests of their citizens are so obviously interdependent, we need to rethink our attitude to concepts like 'sovereignty'."