From the London Financial times:
By George Parker, James Blitz and Daniel Dombey in Brussels
Published: June 17 2005 18:57 | Last updated: June 18 2005 00:47
The European Union was plunged into political crisis on Friday night after Britain led the way in blocking a proposed deal on the new seven-year budget.
Tony Blair, the UK prime minister, was one of a minority of leaders who refused to accept a compromise package, as the Brussels summit collapsed in acrimony shortly before midnight. The failure of the talks means the transfer of billions of euros of aid to former communist countries in eastern Europe, due to start on January 1 2007, may be delayed.
The political ramifications of the breakdown, coming after French and Dutch voters rejected the EU constitution, could be severe.
Friday night recriminations flew about who was responsible for the failure, with Mr Blair taking much of the blame. His willingness to strike a deal on the €4.6bn ($5.6bn) British budget rebate was seen by the EU's Luxembourg presidency as the key to a deal. In rejecting an agreement, Mr Blair was taking a gamble which puts at risk his credibility as a European leader.
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http://news.ft.com/cms/s/51594d14-df57-11d9-84f8-00000e2511c8.html