A free trade agreement with America can play a key role in stimulating economic revival across Britain, Europe and the world, senior Conservative MEP Kay Swinburne told the European Parliament.

The MEP for Wales told a debate on the prospective Transatlantic Trade and Investment Partnership (TTIP) that a deal with the US could generate billions for the EU economy.

She said: "We should not underestimate what a huge achievement a free trade pact with the US would be."

She acknowledged that were would be sticking points in negotiations, but insisted: "They are solvable and should not be used as an excuse for protectionism.

"The best way to get the global economy moving again is via increased capital flows, with appropriate financial supervision and regulation that avoids loopholes between jurisdictions."

Dr Swinburne, a former senior banking executive, added: "Ninety-five per cent of derivative trades and eighty per cent of all financial transactions happen between the EU and the US. We finally have high level agreements that our legislation on both sides of the Atlantic should achieve the same outcome.

"Yet barriers remain. TTIP should provide a framework for both the US and the EU to meet and solve remaining areas of contention, even outside of the actual trade agreement. The political will is already there to work together.

"It is now up to both American and EU politicians and regulators to show that they are able to achieve tangible results that really do break down barriers to the movement of capital as well as goods and services."