Blair calls on EU to change or fail

The European Parliament yesterday had one of its most followed debates in recent years as British Prime Minister Tony Blair addressed MEPs in Brussels on his vision for Europe.

The debate took place just days from the UK's rejection of a new EU budget deal and a week before London assumes the EU Presidency.

Heckled and applauded by MEPs at different stages of his address, Mr Blair said Europe must change to face a changing world. At the same time he defended his European credentials telling MEPs he was a "passionate European".

"It is only by change that Europe will recover its strength, its idealism and its relevance to Europe's citizens," he said. "It is not a debate about abandoning Europe."

Mr Blair told the European Parliament that the rejection by French and Dutch voters of the EU Constitution highlighted the need for new European leadership.

"It is not a crisis of political institutions. It is a crisis of political leadership. The people of Europe are asking questions. The people are looking for leadership. It is our job to give it to them. As ever I'm afraid the people are ahead of the politicians. It is time to give ourselves a reality check. To receive the wake-up call. The people are blowing the trumpets round the city walls. Are we listening?" Blair asked.

"Have we the political will to go out and meet them so that they regard our leadership as part of the solution not the problem? Don't let us kid ourselves that this debate is unnecessary; that if only we assume 'business as usual' people will sooner or later relent and acquiesce in Europe as it is and not as they want it to be."

During his speech, Mr Blair took on those who criticise the UK as pushing a US-style free trade vision for Europe.

"The issue is not between a free market Europe and a social Europe, between those who want to retreat to a common market and those who believe in Europe as a political project. I believe in Europe as a political project. I believe in Europe with a strong and caring social dimension. I would never accept a Europe that was simply an economic market. The purpose of social Europe and economic Europe should be to sustain each other."

On the priorities of the UK Presidency Mr Blair said his Presidency would try to take forward the budget deal, resolve some of the hard dossiers like the Services and Working Times Directives and to carry out the Union's obligations to Turkey and Croatia.

Referring to the EU budget and the British "rigid" stance taken at last week's summit, Mr Blair insisted on the need for a reform.

"I am the only British leader that has ever said I would put the rebate on the table. I never said we should end the CAP now or renegotiate it overnight. Such a position would be absurd."

However, he said it would be wrong to agree to a new financial perspective that does not at least set out a process leading to a more rational budget and this must shape the budget in the second half of the period to 2013.

"Of course Britain will pay its fair share of enlargement. I might point out that on any basis we would remain the second highest net contributor to the EU, having in this perspective paid billions (of euros) more than similar sized countries."

Mr Blair's passionate and reconciliatory speech met favourable comments by Commission President José Barroso. Recognising the turbulent period the EU is in, Mr Barroso said he had high expectations of the impact that UK pragmatism and its results-driven approach might have for the Union. He called on the British Prime Minister to drive the EU project forward.

"You are a statesman of enormous experience and conviction and you confirm today your commitment to Europe as a political project. I therefore have every confidence that you will work towards building a new consensus for Europe."

On the EU budget, Mr Barroso criticised the so-called one per cent countries, which include Britain, for reducing Europe's ambitions. He said there was now a "real urgency" if paralysis was to be avoided post-2006.

"The new member states needed concrete signals of solidarity not just words. The responsibility now lies with the UK Presidency", he said.