The Barcelona summit of EU leaders has ended with leaders giving the green light to plans which will see the removal of obstacles to greater competition in key markets.

However, the summit was marred by angry demonstrations by anti-globalisation protesters.

Agreement was reached on the key areas of reforming the electricity and gas markets, although plans to open-up the domestic electricity market to greater competition were scrapped after France refused to agree to the deal.

After a compromise, the EU leaders agreed that the new rules will apply to the supply of energy to business - which accounts for over 60 per cent of the total market across the EU.

Under the terms of the deal, non-domestic energy markets will be opened up to EU wide competition by 2004.

France refused, however, to privatise its state run EDF electricity company and would not agree to setting a date for the introduction of competition to the domestic supply of power and gas.

Progress

Tony Blair said the summit had made "real progress" but conceded that some of the measures agreed would have "limited" benefits.

Blair admitted, however, that the format of large-scale summits were not an "ideal" use of his time. His comments came after he was heard telling Jack Straw that the event had been "a joy, as ever".

The leaders failed to back Blair's call for radical economic reforms to open up markets and create a more flexible labour market.

He had hoped that the event would be "make of break" for market liberalisation in the EU.

But the leaders did agree to plans which will increase the average retirement age to 65 and give day childcare facilities for 90 per cent of working mothers.

The EU leaders also agreed that low earners should be given tax cuts where possible and backed plans to increase funding for research and development to three per cent of each member state's gross domestic product.

A new EU-wide health insurance card also got the green light at the Barcelona summit.

On the international scene, the summit backed calls for tougher sanctions against Zimbabwe and rejected the result of last weekend's general election.

The EU leaders also backed a motion calling for the urgent implementation of all UN resolutions in the Middle East and welcomed the decision by Serbia and Montenegro to remain as a single nation state.