In a speech in London, Prime Minister David Cameron outlined why he is in favour of a referendum on Europe.
He said "simply asking the British people to carry on accepting a European settlement over which they have had little choice" could mean when the question was finally asked it was more likely they would "reject the EU".
He added: "I believe in confronting this issue - shaping it, leading the debate not simply hoping a difficult situation will go away".
To the surprise of many Lib Dems, Nick Clegg appears to have played down the importance of the Coalition's divide on an in-out referendum.
Business leaders in Davos are worried about the Prime Minister's pledge to put Britain's membership of the European Union to a referendum.
With some in France keen to "roll out the red carpet" for a British exit, Germans favouring decentralisation welcome EU renegotiation talks.