EU summit: Europe hits ‘deep crisis’

Europe has been plunged into “deep crisis” by the failure of European leaders to agree Brussels budgets for 2007 to 2013, said the EU presidency early on Saturday morning.

Luxembourg Prime Minister and EU presidency holder Jean-Claude Juncker has furiously denounced other European leaders.

He accused the UK of deliberately destroying the possibility of a deal against a background of crisis over the EU’s future direction.

“Europe finds itself in a deep crisis,” he said. “Do not believe those who say the union is not in crisis. It is in deep crisis.”

Juncker described a tense EU summit as having been “very close to a deal” late on Friday night.

He attacked EU leaders – particularly the UK, Sweden and the Netherlands - for the failure to agree Europe’s ‘financial perspectives’ for 2007 to 2013.

“Differences were minimal, which is to say that some delegations did not have the political will to succeed,” he said.

“I am sad and shamed by what I've heard.” "My enthusiasm for Europe is crushed."

The Luxembourg leader saved special contempt for Britain and UK leader Tony Blair’s attempt to reopen debate about EU agriculture spending – a cash settlement agreed by all Europe’s governments in 2003.

“Those who, just before concluding, were calling for a full review of Europe’s budgetary structures, were well aware that it was impossible for the 25 countries to agree on a complete restructuring, disregarding all the agreements we reached in the past,” he said.

“Those calling for such a solution were seeking failure.”

Juncker had praise for leaders from new EU members states  – mainly poorer, East European countries – for offering to give up cash in order to find compromise.

"When I heard one after the other, all the new member countries each poorer than the other, say that in the interest of reaching an agreement they would be ready to renounce some of their financial demands, I was ashamed."

“Huge efforts have been made by those who were willing to press on ahead at this difficult moment in Europe’s history,” he said.

“I am therefore not losing hope that Europe will eventually find renewed vigour, even if today it is experiencing a moment of weakness, which troubles me.”

French President Jacques Chirac blamed the UK and Blair for a “pathetic and tragic” faiilure.

“This will change Europe. I ask myself what will be the dignity of those that have said 'no' when the poor member states say at the same time that they want to make sacrifices,” said.

“I deplore the fact that the United Kingdom refused to contribute a reasonable and equitable share of the expenses of enlargement.”

German leader Gerhard Schroeder named the Netherlands and the UK as those to blame for the collapse of a summit that has already failed to resolve the EU’s constitution crisis.

“I believe a deal would have been possible. The fact that there wasn't one is solely due to the inflexible stance of the British and the Dutch,” he said.

Despite a sense of deep political crisis, the timetable for finding an EU budget deal is still on track.

But negotiations will have to go on hold for six months until the Austrian EU presidency in January 2006.

The UK takes the EU presidency in July but will be enable to broker talks after the acrimonious summit collapse focused on Britain’s budget stance.

UK foreign minister Jack Straw acknowledged that the British EU presidency was set to be “hard going”.

“The problem we have at the moment is that in many member states the… agenda for economic reform to make Europe the most prosperous dynamic economy in the world has simply not worked. And it has not worked because those countries have failed to face up to the need for major reform,” he said.

“This is a moment of difficulty, it is also a moment of opportunity. We take all the responsibilities of the presidency in two weeks' time and we will aim to lead the debate.”

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