'If you call for debate on Europe's future you must follow that up'

From Paris, Berlin and new member countries in eastern Europe, Britain stands accused of failing to regain the initiative after the rejection of the constitution by French and Dutch voters in the summer. Former communist countries in the east are particularly angry with Britain for delaying until December what they regard as the most pressing issue facing the EU: the need to agree a new budget.

Jean-Dominique Giuliani, the president of the Robert Schuman Foundation in Paris, said Mr Blair had engineered a strong start to the presidency with his reform or die speech to the European parliament in the summer. But he added: "It is very difficult for the British government to be at the heart of the European economy because Britain does not belong to the euro. It is very difficult to convince your colleagues [from outside the euro], to create confidence, to have [a] personal relationship."

Even European reformers, who are well disposed to Britain, have their doubts. Charles Grant, the director of the Centre for European Reform, said: "The criticism is understandable and partly justified. Just after the speech you had the terrible bombings in London which obviously diverted the government. But if you ask for a debate on the future of Europe you need to follow that up."

But Mr Grant said presidencies could only be judged in the round: "If there is a deal on the budget - after the start of accession talks with Turkey - it will be seen as successful. If there is no deal on the budget it will be seen as unsuccessful."

Sir Stephen Wall, who was Britain's ambassador to the EU during the last presidency, said the criticisms were familiar: "I lived through this during the last British presidency. The country that has to give up most [on the budget] is the UK. Therefore it is in others' interests to wind Britain up. It is what I would do."

Mr Blair and Jacques Chirac had a bust-up after France rejected a British proposal to place its budget rebate on the table in exchange for reforming agricultural spending. Amid such a poisonous atmosphere Mr Blair decided to delay serious negotiations on the budget until the latter half of the presidency. The Hampton Court summit was designed as a warm-up for the budget negotiations by trying to place economic reforms at the heart of the EU. Sir Stephen believes that the most important relationship in Europe - between Mr Blair and Mr Chirac - now appears to be warming up.

"It does go in waves. They are repelled and attracted to each other," he said.