Tony Blair has warned David Cameron's promise of an EU referendum is an "unacceptable gamble" with Britain's future.
The former Labour prime minister also told Sky News the current party leader Ed Miliband had his "100%" support, and said he had showed "real leadership" in resisting calls to back an in/out vote.
Speaking in his former constituency of Sedgefield, Mr Blair claimed the PM did not believe the UK should quit Europe, but had committed to a referendum in 2017 as a "sop" to the right wing of his party and UKIP.
But he warned the vote would be a "huge distraction", risking economic chaos and threatening the UK's national interest.
It would also put EU "exit" on the agenda for the first time.
And he had sharp words for UKIP, arguing its brand of nationalism as "ugly".
In his speech Mr Blair said: "I believe passionately that leaving Europe would leave Britain diminished in the world, do significant damage to our economy and, less obviously but just as important to our future, would go against the very qualities and ambitions that mark us out still as a great global nation.
"Think of the chaos produced by the possibility never mind the reality of Britain quitting Europe.
"Jobs that are secure suddenly insecure; investment decisions postponed or cancelled; a pall of unpredictability hanging over the British economy."
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He added: "And the oddest thing of all about David Cameron's position? The PM doesn't really believe we should leave Europe; not even the Europe as it is today.
"This was a concession to party, a manoeuvre to access some of the UKIP vote, a sop to the rampant anti-Europe feeling of parts of the media.
"This issue, touching as it does the country's future, is too important to be traded like this."
In a broadside against UKIP, Mr Blair said: "National pride is a great thing. Nationalism, as a political cause in the hands of parties like UKIP, is almost always ugly and, despite being wrapped in the garb on high-sounding phrases, can never disguise its essentially mean spirit."
And praising Mr Miliband's stance, Mr Blair said: "Labour and its leader took a brave decision when they decided not to yield to pressure but instead to make the principled and intelligent case for Britain in Europe.
"In doing so, in my view, they showed they understand Britain's future and its destiny better than those prepared to trade policy for political advantage.
"That is one very good reason, amongst many others, for voting Labour on May 7."
Speaking at an event in Bristol, Mr Miliband referred to Mr Blair's speech on Europe and said it was a "fundamental issue" for business.
"I believe our future lies inside not outside the EU," he said.
Asked afterwards about his relationship with the Labour leader, Mr Blair told Sky News: "I support him 100% to lead our party to victory at the election."
However, he went on to point out there had "always been disagreement" within Labour hinting at behind-the-scenes differences over the direction Mr Miliband was taking the party in.
Mr Blair was an ally of David Miliband, who lost to his brother in the 2010 leadership battle.
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