Leaders say EU in ‘deep crisis’ as talks collapse

BRUSSELS, Belgium – Talks on the European Union’s budget collapsed in acrimony Friday, abruptly ending a summit that diplomats had hoped would pull the EU out of its constitutional dilemma. Angry leaders blamed each other for the breakdown but agreed the bloc was “in a deep crisis.”

The failure to agree on a budget for 2007-2013 reinforced impressions that the 50-year process of EU integration has lost direction after the French and Dutch referendums in which voters rejected a proposed EU constitution. Leaders of the bloc’s member states failed to resolve strident disputes over spending and did not present a clear plan to save the constitution.

Luxembourg Prime Minister Jean-Claude Juncker said today that in coming weeks EU diplomats and others “will tell you that Europe is not in crisis. It is in a deep crisis.”

In a sign of how much the EU’s new members were prepared to do to clinch a deal, Poland, the Czech Republic and eight other eastern nations offered funds destined for them to their rich western partners.

French President Jacque Chirac praised the 10 nations, saying their offer to give up money to get Sweden, the Netherlands, Finland and Britain to agree to a budget deal contrasted with “the selfishness of two or three rich states.” Juncker said he was “ashamed” of the wealthy nations’ response.

European leaders did agree Thursday to postpone the November 2006 deadline by which all members were to have ratified the charter, a roadmap to further the political and economic integration of Europe. They said the extra time would be used to digest the French and Dutch referendums nearly three weeks ago.

On Friday, Britain refused to surrender its annual rebate and several other nations demanded financial relief. Chirac said he “deplored” Britain’s attitude during the negotiations.

“It’s a bad result for Europe,” Chirac said.

German Chancellor Gerhard Schroeder said, “We are in one of the worst political crises Europe has ever seen. We could not get an agreement because of the stubbornness of Great Britain and the Netherlands.”

British Prime Minister Tony Blair dismissed suggestions that Britain was the main cause of the summit’s collapse, insisting four other countries also were unable to reach agreement.

In what appeared to be a veiled reference to Chirac, Blair said: “I’m not prepared to have someone tell me there is only one view of what Europe is.”

“Europe isn’t owned by any of them; Europe is owned by all of us.”