Britain challenged the European Union on Friday to reform its budget or risk falling behind in the global economy as it began its presidency of a bloc that is facing financial deadlock and suffering an identity crisis. Prime Minister Tony Blair used the first day of Britain's presidency to call an informal summit in the autumn. The rejection of a constitution for an enlarged EU by voters in France and the Netherlands has left the bloc lacking a clear sense of direction. While the long decisive influence of France and Germany may be waning, Blair seeks to use the presidency to reshape the debate over Europe, Reuters reported. "We've agreed it would be sensible for the presidency to hold an informal summit in the autumn at which the leaders of Europe can come together and discuss how Europe makes progress in the future," Blair told a news conference. Leaders agreed earlier this month on a "pause for reflection" on the treaty. The special summit will be held in Britain. A failure to agree a 2007-2013 budget has compounded Europe's woes, inflaming Anglo-French tempers and raising the risk of financial paralysis. Blair, whose long-held ambition is to put Britain at the heart of Europe, said he could not guarantee a budget deal by December -- an outcome most EU diplomats see as unlikely. --More 1841 Local Time 1541 GMT
