Tony Blair's plans for sanctions against third world countries that refuse to cooperate with plans to halt illegal migrants have been branded "morally repugnant" by international development secretary Clare Short.

Several newspapers report that the government is prepared to back-track on the plans at a meeting of EU heads of government in Seville today.

Pressure from France and fears that they could prevent a wider EU agreement on tackling asylum are said to be behind the shift.

A compromise deal linking trade to asylum cooperation is the likely outcome, according to press reports.

In a GMTV programme to be broadcast on Sunday, Short says the plans are "a really silly idea".

"It's morally repugnant to hurt the poor of the world in order to get your way with a different policy intent."

In an interview with the Mirror, European Commission chief Romano Prodi predicts that Blair could become president of Europe if he leads the UK into the euro.