Clearly unconvinced that his message came across at last week's failed European Union summit in Brussels, British Prime Minister Tony Blair continued his battle against the proposed EU budget on Monday. "It simply does not make sense in this new world for Europe to spend 40 percent of its budget on (farming), representing 5 percent of the EU population and producing less than 2 percent of EU output," he told the House of Commons in London. The agricultural budget, he noted, is seven times greater than expenditures for research, science, technology and innovation put together. When he addresses the European Parliament later this week, Blair is also expected to make a strong push for his vision of Europe, which would give greater emphasis to a common market than to political unity.

In Germany, newspapers are mixed on Blair's obstinacy, with many agreeing that the agricultural budget should, in fact, be cut.

"It is right that Blair should have a bad reputation in Europe," writes the center-left Sueddeutsche Zeitung. "As Britain's chief European negotiator, he is deeply lacking in credibility." Up until now the British have seldom been renowned for their willingness for reform in Brussels and they have seldom made a constructive contribution to creating a reliable foundation for the EU budget. "It was only when there was talk of cutting the rebate that Blair realized that he thinks the current budget and economic policy is antiquated." Unfortunately, his transparent tactics reduce Blair's influence even though this time around he is actually correct. This crisis doesn't have to be a disaster, it could even be an opportunity. It is Blair's responsibility to grab this chance. Then he can show that he's more than just an unprincipled tactician. After all, the paper asks, can it be that farmers alone should determine Europe's future? "Whoever is in favor of a modern, efficient and transparent Europe which is accepted by its citizens must break up the old structures -- both in the EU and its member states. Markets must be liberalized, expensive welfare budgets trimmed and red tape cut," it concludes.

Somebody had to stop the EU budget in its current draft, writes the Financial Times Deutschland, "and we should be thankful to Blair that he did it." The EU can no longer take refuge in 'business as usual'. In Europe, it is no longer the case that the path is somehow the goal. Now we need a frank debate about what today's goals are. "The EU must concentrate on tasks in which collective action really yields added value -- and otherwise leave each country to act as it pleases. If that is denigrated as an 'extended free trade zone', then so be it. It is certainly more suited to reality than visionary waffling about a 'United States of Europe.'"

"This is not a repeat of Waterloo," writes the Berlin daily Der Tagesspiegel, "but rather the result of the Iraq war and the ensuing European split. Blair's obstinacy is also a result of injuries sustained in previous years when Paris, in particular, treated him like pariah." Prior to the Iraq war, Blair was not strong enough to stop the agricultural subsidies compromise reached in 2002. The right time to pose the question of Europe's fitness for the future would have been just before enlargement. But now the conflict is severely rocking a Europe which has already been weakened. "If Blair now uses the rebate as leverage to make Europe spend less money on the past and more on the future," the paper writes, "then the Europeans can only be grateful to him." However, in his battle against France's Chirac, Blair has gone "over the top" and has angered eastern Europeans who otherwise would be allies of Britain in financial policy. Even if Germany's Gerhard Schroeder stands down soon, Chirac will remain in office long enough to inflict a political Waterloo on Blair, who takes over the presidency on July 1. "The EU currently only seems to be dynamic in one sector: the production of defeats," the paper arguees. "If this is to change, Europe needs a new generation of politicians. The old ones still carry too much Iraq poison."

In the short term, writes the Berliner Zeitung, Blair may be the scapegoat in Brussels. After all, he has to bow to the eurosceptics in his own party, like Foreign Secretary Jack Straw. "Blair believes that Europe needs a mixture of neoliberal reforms and social security. New Labour, in other words," the paper writes. That may not meet with immediate approval in Brussels, but Downing Street is playing for time. In the Netherlands, Sweden and possibly Spain, it has potentially strong allies for this concept. The idea is that Schroeder and Chirac will soon be replaced by more pro-British leaders. "London is especially pinning its hopes on Angela Merkel (who is leading the polls in the coming German election) and that she will shift away from Paris a little, normalize relations with the United States and thus move closer to Britain."

The Financial Times Deutschland also asks how a Chancellor Merkel would manage European affairs. "There are high expectations of Merkel in Europe," reads a second EU-focused editorial in the paper "Chirac's, Schroeder's, Berlusconi's and Blair's days are all numbered and there is a longing for new faces." So far there is only a vague notion of what Merkel's European policy could look like. However, after the summit she made it clear that she does not see herself as a future ally of the isolated Tony Blair. "First, she insists on the EU moving closer to a political union," the paper asserts. "Second, she wants Germany to act more as mediator and to overcome divisions. And though she is sceptical of the Franco-German axis, she will be clever enough not to cause new divisions with an alliance with the British." So far, Merkel has not shown much emotion when it comes to Europe. She will have to develop this in order to take on the leading role which Germany will have to play.