British Business Secretary Vince Cable has said debate on the UK’s relationship with the EU has created unnecessary uncertainty among business groups.
Speaking on RTÉ's Morning Ireland, Mr Cable said he had come to Ireland in an effort to calm down that uncertainty.
He said he is confident that Britain would stay in the European Union, saying "common sense would prevail".
British Prime Minister David Cameron has said he would hold a referendum on whether or not to remain in the EU if he won the next general election.
Mr Cable, a member of the Liberal Democrats, which forms Britain's coalition government with the Conservatives, said that membership of the EU was of enormous benefit to the UK, as it was to the Republic.
However, he said there is an element of uncertainty because there is an inner core of the eurozone of which Britain is not a member.
Mr Cable added: "We all agree that things have to change, the European Union in its present form isn't working brilliantly."
Taoiseach Enda Kenny has said it would be a catastrophe for the EU if Britain were to leave.