The European Union was plunged deeper into crisis today after its leaders failed to agree on a long-term budget, just two weeks after French and Dutch voters rejected its proposed constitution.
The summit breakdown threatens the enlarged 25-nation bloc with financial paralysis on top of the political uncertainty wrought by the double referendum defeats, unnerving financial markets and weakening the euro, the EU's single currency.
In a welter of recrimination, many leaders blamed Britain for blocking a deal on the 2007-2013 budget by rejecting proposals to limit its annual rebate from EU coffers and demanding a reform of farm subsidies that benefit France most.
"Europe is in a deep crisis," French President Jacques Chirac told a midnight news conference, blaming "the selfishness of two or three rich countries" for the failure.
Luxembourg Prime Minister Jean-Claude Juncker, who laboured to forge a compromise as EU president, said he was ashamed that poor new members from eastern Europe had offered to sacrifice some funds from Brussels in a vain effort to salvage a deal.
The Taoiseach, Bertie Ahern, insisted yesterday that Ireland had not postponed a referendum, because no date had been set in the first place. However, Government sources confirmed yesterday that the intention had been to hold an autumn referendum, and that this would not now take place.
The failure would weaken Europe in the long term and sharpen a clash of philosophies between believers in European unity and those who sought a glorified free-trade area, he said.
German Chancellor Gerhard Schroeder blamed British and Dutch obduracy for what he called "one of the worst crises Europe has known".
But British Prime Minister Tony Blair was defiant, insisting London had not been isolated since four other west European countries had opposed the deal, and vowing he would only trade a reduction in the rebate for an overhaul of EU farm spending.
Asked if others had tried to isolate him, Blair said: "If that was the attempt, it failed. We weren't alone around the table in resisting this. I think people know exactly what the issues are here and I don't think they'll be fooled by any tactics and manoeuvres."