Blair's agenda for EU

Today's informal summit of European Union leaders at Hampton Court outside London has been scaled back by its chairman Tony Blair…

Today's informal summit of European Union leaders at Hampton Court outside London has been scaled back by its chairman Tony Blair to help find a consensus on current issues. He was worried that unnecessary rancour over appropriate social models and the EU's budget would set back his efforts to bring its agenda forward. He told the European Parliament yesterday the British presidency will do its level best to find a compromise on the budget by December rather than intensify the row on it at Brussels last June after the French and Dutch electorate rejected the constitutional treaty.

Mr Blair has also responded favourably to president Jacques Chirac's support for the proposal that an EU globalisation fund should be set up to help workers and regions respond to economic changes. Mr Blair wants to concentrate attention on issues such as global warming, international development and combating terrorism as demonstrations of practical value for European citizens.

This is a sensible approach - although it does take from the impact of today's summit. The EU badly needs to find ways to show its relevance after the battering given to its morale. In his article in this newspaper today Mr Chirac insists France is not turning its back on a commitment to a more powerful Europe which can make the most of its assets and offer its young people new horizons, growth and jobs to strengthen and protect them.

Mr Chirac says the EU must move fast to keep up with international competition by boosting innovation and research in areas such as biotechnology, information technology and nanotechnology. He wants to mobilise funds from the European Investment Bank to double research capabilities. Looking ahead, he sees the need to diversify, secure and modernise energy supplies. And if increased migratory pressure is to be handled effectively it must be done in tandem with fresh initiatives to co-operate with African leaders in reducing gaps between rich and poor countries.

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These are valuable and welcome ideas. Both Mr Blair and Mr Chirac are backing off from last June's confrontation over Cap reform and the British budget deficit. It may well be possible to reach agreement on a budget in December. But a compromise is likely to be based on a formula that will not provide sufficient funds for transfers to the new member states in central and eastern Europe, not to mention the ambitious R&D agenda. Funding for that and the globalisation initiative will be sought outside the existing budget. But that weakens and fragments existing structures and reinforces inter-governmentalism. This needs more debate in coming weeks.