Tony Blair sidestepped Commons criticism of a lack-lustre Barcelona summit on economic reform [Times 19, Independent 2, sketch, Times Business 30, Sun 8 Trevor Kavanagh] by focusing on Conservative divisions over Europe [Guardian 11, Times 4, Independent 8, Mirror 4]].

The prime minister deflected a claim by Iain Duncan Smith that the two-day gathering of heads of government had produced pointless "Euro-waffle".

Demanding, without success, that the Conservative leader back or attack a call by Baroness Thatcher to leave the EU, Blair told MPs that Europe had delivered on 50 years of peace and prosperity. "How can anyone seriously argue for withdrawal?," he asked.

Admitting that progress on reform had "stalled" at last year's summit in Stockholm, the PM declared that "we are indeed moving again" but conceded there "is still much ground to be made up" if the EU is to become the worlds most competitive economy by 2010.

Labour MPs questioned Blair on the his close alliance with right-wing governments in Italy and Spain. Jose Maria Aznar, Silvio Berlusconi and the British PM worked closely on employment matters, a development described as "bloody stupid" by TUC chief John Monks and highlighted by Glasgow MP Ian Davidson as "of great concern that a Labour prime minister has fallen in with a Spanish Conservative and a Italian neo-fascist" [FT 2, Guardian 18, Hywel Williams, Independent 8].