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Nick Clegg, speaking on LBC 97.3 said he didn't understand the point of "tying yourself up in knots"
Nick Clegg has said the UK risks "tying itself in knots" and neglecting more important issues by trying to renegotiate its EU membership.
The Lib Dem leader said it was "wholly implausible" to think the rules could be rewritten to "benefit us and disadvantage everybody else" .
He said the aims of David Cameron's proposed renegotiation were "vague" and uncertainty could hit growth and jobs.
The prime minister has insisted the UK "is not turning its back on Europe".
David Cameron has promised to hold a referendum on whether the UK should stay in the EU, although the pledge would be dependent on him being prime minister after the next election, expected in 2015.
'Political purposes'The move has been welcomed by most Conservative MPs but both Labour and the Lib Dems have said they do not support such an in/out referendum, arguing that uncertainty about Britain's future would undermine the UK's economic prospects.
Speaking on his weekly phone-in on LBC radio, Mr Clegg said Mr Cameron was "entitled" to set out what he would do in a future Conservative government and made clear he had been given advance notice of the PM's referendum commitment.
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David Cameron: 'The club we belong to is changing'
He said he did "not fear" the principle of a referendum and that his party had supported legislation guaranteeing that the public would be consulted before any further powers were transferred to Brussels.
But he said he disagreed with the timing of Mr Cameron's announcement, which he said was a distraction from more urgent issues, and which he believed had more to do with the prime minister's "own political purposes" than the country's wider interest.
"Where David Cameron and I part company is I simply don't understand the point of spending years and years tying yourself up in knots first renegotiating the terms of Britain's membership in ways that at the moment are completely vague.
"I think that discourages investment and inhibits jobs and growth which has to remain our absolute priority."
There were two likely outcomes from the process that Mr Cameron had set in train, he suggested.
"Either it is basically a bit symbolic - so you tweak the working time directive and a social law here or an environmental law there that everybody will agree with so, in which case, what is the fuss all about?
"Or you are going to do something which I think is wholly implausible which is basically totally rewrite the rules to benefit us and disadvantage everybody else which is clearly not going to be agreed to."
'Engine for growth'Speaking at the World Economic Forum in Davos, Mr Cameron said the EU was losing out to other growing economies and the union must be reformed so it was "an engine for growth, not a source of costs for business and complaints for our citizens".
End QuoteDavid Cameron has never enjoyed headlines this good...but for how long?"
"This is not about turning our backs on Europe - quite the opposite. It is about how we make the case for case for a more competitive, open and flexible Europe and how we secure the UK's place in it."
Although Mr Cameron talked about returning powers from Brussels to national governments in areas such as the environment and social affairs, he has yet to give any specific details.
Senior Conservatives have suggested details of how the party would try to renegotiate looser ties with the EU and in what areas would be included in its election manifesto.
Labour has warned that the prospect of a referendum could send out the wrong signal to business.
"We have traditionally said 'come to Britain because it is a favourable climate and you will have access to his huge market'," said former Labour Europe minister Peter Hain. "Now we are on a road which could lead us out of Europe and out of that market and that is a decision which is going to affect investment."
A group of 55 British business leaders have written an open letter to the Times endorsing the PM's approach, saying their firms are being held back by too much regulation coming from Brussels and it is time to "push for a more competitive, flexible and prosperous European Union that would bring more jobs and growth for all member states".
However, other executives have warned that doubts about Britain's future in the EU could push up borrowing costs for companies and impact on growth and job creation.
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