Luxembourg's Prime Minister, Jean-Claude Juncker, whose country holds the European Union, has told a news conference, "Europe is not in a crisis, it is in a profound crisis."
The comments were made after a summit he chaired broke up without agreeing on a budget for 2007-2013. He accused some countries of lacking the political will to reach an agreement and, in an apparent attack on Britain, said those who wanted Europe to be a simple free trade zone should explain how it could work.
Britain's Prime Minister Tony Blair has insisted that his country is not isolated, saying four other countries had rejected the final compromise.
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