Deputy Prime Minister Nick Clegg said the government was not going to change course in paying off the deficit. Speaking on the BBC's Andrew Marr show he said:
We are absolutely not going to change course in paying off one of the world's largest budget deficits, why because if you just shrug your shoulders and say sorry it is too complicated, we end up asking our children and our grand-children, to pay off this generation's debts.
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.