Controversial plans for sweeping changes to the way the EU works are a "step change" towards the creation of a European superstate, the Tories have claimed. Draft proposals from the convention debating Europe's future - including a call for an elected EU president - were published on Monday. The proposals are aimed at setting out a vision of how the EU will be run after 10 new countries join next year.
References to a "federal" Europe were dropped at Tony Blair's request after a meeting with convention chairman, former French president Valery Giscard d'Estaing.
Calls to rename the EU as "United Europe" have also been rejected amid UK concern.
The government is resisting demands for a referendum on the proposals, saying they represent a "tidying up" exercise aimed at streamlining the way the EU works.
But there is a possibility that there will be attempts in the House of Lords, where the government does not have a majority, to push through a referendum plan.
Mr Hain told BBC Radio 4's The World at One there was no case for a poll.
He said the Tories were trying to "frighten" the public by suggesting the proposals were a threat to British sovereignty.
"The important thing is that we got the term federal out, and that makes it crystal clear that the idea of a Brussels superstate is a myth," he said.
"We will have this new Europe which is a partnership of sovereign member states like Britain."
But Tory spokesman Michael Ancram said: "We are seeing the creation of a political union.
"It is a step change away from the partnership of nations.
"This is a real move away from our ability to determine our own future, and that is why it is so important that the people of this country are allowed to decide."
Liberal Democrat spokesman Dr Vince Cable said his party could support the referendum calls if "significant constitutional change" was proposed.
The new EU president would be a serving or former prime minister of an EU country elected by the leaders of member states.
On foreign policy, the draft says EU states should "actively and unreservedly" back a common foreign and security policy.
**Veto***
The 148 pages of proposals have been drawn up over 15 months by the 105 members of the convention, including government ministers, Euro MPs, MPs and the European Commission.
The UK Government has said it will veto any plans which it believes are not in British interests.
The draft - more of which will be published this week - will be debated again by the convention this week and then be considered by EU leaders at a summit in Greece in June.
It is hoped a final agreement can be reached by the end of the year after an intergovernmental conference in the autumn.
**PHOTO CAPTION***
Peter Hain says the proposals represent "good progress", Photo By BBC