Daily Express, 23rd June 2007

From Macer Hall Political Editor, in Brussels

TONY Blair last night surrendered a wide range of powers to Brussels.

In his last act as Prime Minister, he agreed to a sweeping new European Union treaty.

The midnight deal will extend meddling by Eurocrats into virtually every area of British life. Agreement was reached after 14 hours of talks in Brussels, with Mr Blair playing a key role in preventing the awkward Polish delegation from storming out. Early today the PM was claiming victory at his last international summit before his exit from Downing Street this Wednesday.

He trumpeted winning his key four "red line" battles, preserving Britain's right to opt out of EU regulations on policing, law courts, tax and benefits and a deluge of new human rights. Mr Blair's spokesman said: "We think we're OK." But the Tories and Eurosceptic groups are today set to accuse him of departing the world stage with a mammoth betrayal of Britain's interests.

The EU treaty allows Brussels to decide 52 new areas of policy including energy, farming, fishing, culture and tourism.

It will come into force in 2014, introducing a streamlined voting system for the 27-nation EU.

Mr Blair joined French President Nicolas Sarkozy and Luxembourg Premier Jean-Claude Juncker in frenzied last-gasp talks with Poland's President and Prime Minister, twin brothers Lech and Jaroslaw Kaczynski.

The pair, who inflamed the summit by evoking the Second World War massacre of seven million Poles by the Nazis, threatened to scupper the deal. They were persuaded to stay on board after Poland was threatened with isolation.

Earlier in the negotiations, Mr Blair gave a foretaste of his surrender by caving in to France over free trade.

He cut a deal with the French to wipe the Common Market's founding principle from the European Union's aims.

Mr Blair caved in to a demand by President Sarkozy to remove the 50-year-old commitment to "free undistorted competition" from the document's main statement.

But he was humiliated when furious Gordon Brown intervened to order him to toughen up Britain's stance. In three angry phone calls, the Prime Minister-in-waiting berated his predecessor for giving in.

The exchanges led to a scramble by British officials to set up a legal protocol enforcing an EU free market. But critics remained angry that free trade had been effectively dumped from the statement of aims of the treaty.

William Hague, the Shadow Foreign Secretary, said: "It looks as if our Government has just agreed to rip out the jewel in the EU's crown." Downing Street argued that the move was a symbolic gesture, with free trade guaranteed by legal small print.

But senior Tories, business leaders and Eurosceptic campaigners accused the Prime Minister of wrecking Europe's common market, the only aspect of the EU which British voters have ever supported in a national referendum.

Former European competition commissioner Mario Monti claimed the move was "a distinct signal of the beginning of the disintegration" of the EU.

"The UK business community would have reason to be disappointed by the Prime Minister, " said Mr Monti.

The Tories were convinced that the founding common market aim of the EU had been sacrificed. Mr Hague said: "Ensuring free and open competition in the EU is what the EU does best. It has made our economies more competitive and brought down prices across the board. This is an astonishing climbdown and EU officials and legal experts are rightly alarmed.

"This could mean a return to dangerous protectionism which can only end up raising prices and destroying jobs. This is a classic last-minute stitch-up and shows once again how bad Tony Blair is at tough negotiations. There is no way the Government should ever have agreed to this.

John Cridland, Deputy DirectorGeneral of the Confederation of British Industry, said: "This is a regrettable and frustrating lastminute development.

"It is not just a cosmetic change.

It represents a long-term threat to free competition and will strengthen the hand of protectionists within the EU in the years ahead." James Walsh, of the Institute of Directors, called the move a "serious mistake" while Ruth Lea, of the Eurosceptic think tank Global Vision, said: "This is going to increase regulation and protectionism."