Press

"At this junction they will have to support Greece," Simon Tilford, chief economist at the Centre for European Reform, said of Europe's politicians. "If you have encouraged the markets to believe that support is forthcoming and then it is not, we will see a backlash" in financial markets. Though Mr Tilford said the markets would ideally like to see some form of guarantee extended to Greek loans, he added that this would probably be too much for the government in Berlin.

Charles Grant, director of the London-based Centre for European Reform, published a paper last month arguing that Europeans need to agree on a single message in their dealings with China so that Beijing can't play a game of divide and conquer. At the same time, he said, the E.U. should "abandon the fiction of a 'strategic partnership,'" which cannot be meaningful with such divergent value systems, and focus on a limited number of issues on which China and the E.U. can find agreement.

"The broad thrust of the agenda remains as valid today as it was back then [in 2000]," said Philip Whyte of the Centre for European Reform think-tank. "A decade on, many EU countries still suffer from low employment and low productivity. So residual barriers to intra-European trade need to be dismantled and more must be done to encourage entrepreneurship and innovation."

Tomas Valasek, of the Centre for European Reform think-tank, said NATO would continue to try to forge greater co-operation on shared security concerns, even though progress had been limited. He said Russia had been consistent in its view of NATO as a threat and in looking for ways to divide the alliance and halt its enlargement, while NATO was "torn between seeing Russia as it is and seeing it as we would like it to be." ..."Even the vaunted northern corridor [supply route], hasn't really gone anywhere," Valasek said. "There's been one shipment that's come through, that's all.

Tomas Valasek, director of foreign policy and defence, Centre for European Reform, said if the needs of Iran's research reactor were to dictate the process there would be no agreement. "That's a deal breaker, because of course the whole idea behind the deal is let's get all of the stuff out so that we win more time so that the Israelis don't feel itchy and don't bomb Iran in the next few weeks," he said.

"There has been a lot of rhetoric about the 'European project' (to strengthen the EU) but to a large extent governments have had their heads in the sand and not addressed the tough underlying problems," Simon Tilford, chief economist at the Centre for European Reform think-tank in London, said. "There is an insularity and provincialism which is very worrying."

Charles Grant, director of the Centre for European Reform, a London based think-tank, said this president does not have the attachment to the old continent of many of his predecessors. "Obama is very unemotional about the EU," he said. The key to getting him to attend E.U. summits is to provide practical solutions to problems. "He's not going to take the EU seriously unless the EU delivers," he said.

"There is very little in recent years that has gone well," says Clara O'Donnell of the Centre for European Reform. "The difficulties of the A400 M transport programme have been especially serious and have undermined the enthusiasm of the UK for joint procurement programmes."

Charles Grant, the director of the Centre for European Reform, a London-based research centre, said that the Obama snub "is a useful wake-up call for the EU" He said the European Union must realize "that no one will court them or have summits with them because Europe is a nice idea. They need to deliver." Mr Obama sees Europe as an important ally, but "Obama clearly has no emotional identification with Europe," Mr Grant said.