Blair's Euro vision leaves MEPs divided

TONY Blair was both heckled and cheered by MEPs yesterday as he tried to convince the European establishment his grand visions of reform were not empty promises.

Mr Blair, who today hosts a summit of EU leaders at Hampton Court Palace near London, has come under fire from across Europe for appearing to devote little time or attention to Britain's six-month presidency of the union.

Having vowed that the presidency would be the launch-pad for a fundamental shake-up of the sluggish European economy and its discredited institutions, Mr Blair has found himself mired in doubt and acrimony.

Today's summit has been downgraded to a single day of talks from the normal two days, and given "informal" status that means no notes will be taken and no formal conclusions issued.

As part of what Downing Street called "the process of turning the vision into concrete reality", Mr Blair yesterday addressed MEPs in Strasbourg, outlining what he says are the challenges facing the EU in a globalised economy.

"I think it is agreed generally in Europe we need to get Europe moving and we need to get it moving in the right direction," Mr Blair said. "The question is how we do that."

Among ideas Mr Blair offered were a fund to help companies modernise, new rules on immigration and energy, and updating European universities.

Just as when he spoke to the European Parliament in June, Mr Blair's accomplished oratory delighted many MEPs yesterday.

But there were also signs that Mr Blair's spell is starting to wear off for some.

Monika Frassoni, an Italian Green MEP, praised Mr Blair's "performance skills", but warned: "Your skill does not make up for the fact that the Hampton Court summit has been downgraded to a friendly chat about this and that."

Behind the long-term economic agenda is Mr Blair's more immediate drive to avoid an embarrassing spat with France's president, Jacques Chirac, today.

France and Britain remain at loggerheads over the EU's budget. Mr Blair has pledged to reach an agreement on financing the union from 2007 by the end of the UK presidency, but Paris refuses to compromise on farm subsidies and London is standing firm on the 3 billion annual UK budget rebate.