EU picks up pieces after summit breakdown

The European Union began picking up the pieces today after an acrimonious summit at which EU leaders failed to agree on a long…

The European Union began picking up the pieces today after an acrimonious summit at which EU leaders failed to agree on a long-term budget and put the bloc's troubled constitution into cold storage.

The EU's executive body, the European Commission, pleaded for early efforts to clinch a deal on the 2007-13 budget and increased pressure on candidate Turkey over human rights, responding to public anxiety about enlargement reflected in the French and Dutch “No” votes on the constitution.

British Prime Minister Tony Blair sought to limit the damage from his refusal to yield on Britain's rebate from EU coffers that precipitated the summit breakdown, promising to work for a deal that would meet the needs of the new East European members.

Many of the formerly communist states were irked by his action, which put in jeopardy urgently needed public investment in those countries from 2007 by delaying financial programming.

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But Mr Blair defended his decision at last week's summit by insisting any cut in Britain's annual refund be linked to reform of EU farm subsidies, which mainly benefit France.

“This isn't a budget fit for the purpose in the 21st century ... Europe just cannot wait 10 years or more for change,” he told parliament in London.

Britain takes over the EU presidency for six months on July 1.