A former Tory MP has accused the Prime Minister of "destabilising" British politics with his promise of a referendum on UK membership of the EU.
Lord Dykes, who is now a Liberal Democrat peer, warned that the effects of David Cameron's speech were going to be "very disturbing".
He said the threat of a referendum would create "a lot of uncertainty and difficulty", particularly for British businesses.
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.