The New York Times, the BBC, and the Washington Post all agree that the European summit has collapsed and that the future is bleak. A compromise over the budget couldnt be reached.
Chirac objected to "the British check", and blames Britain for the "serious crisis," while Blair wanted reform. "Most embarrassing for the European Union was an attempt by its 10 newest members to salvage the budget agreement late last night. They offered to give up some of their own aid from the union so that the older and richer members could keep theirs." (NY Times) Behind all this is the deeper ideological dispute, with the New Europe (and Denmark) wanting freer trade, and free movement of labor, while the Old wants to avoid the "Anglo-Saxon economic model" by preserving socialism and the welfare state. The Old Europeans dont understand that if they want to become a superpower they have to work for it. Look for a better relationship between the New European countries, the United Kingdom, and the U.S., with some from the Old bloc jumping aboard, including Denmark and Italy. Alliances are forming. Das ist alles, baby. Thirty years from now, the rest of Europe will be backwater.