Europe's leaders have agreed a common position on the Iraq crisis after an emergency Brussels summit.

Tony Blair will be relieved that the sometimes incoherent EU gathering has not signed up to "indefinite" United Nations weapons inspections and appears to have agreed force is an option.

"Everyone agrees Saddam is a threat, everyone agrees that he must be disarmed otherwise he poses a real danger to his region and the world, and I think most people understand if that can not be done peacefully it has to be done by force," Blair said on Monday night.

The British prime minister played down European divisions - which had remerged with tough French talk of using its veto on the UN security council if Washington put a second resolution in train.

"What was interesting about tonight's meeting is that in reality not a single person around the table disputed the fact that at present Iraq is not fully cooperating as it should have," he said.

"The most important thing is to send a signal of strength, not weakness, because that is the language Saddam will understand. That is also our best chance of avoiding war."

But Blair, who needs new UN backing to win over the tide of hostile domestic public opinion to war, conceded that there were battles ahead.

"Yes there are differences, but there was also a lot of common ground," he admitted.

"I'm being diplomatic. It's not going to help if we simply fall out with each other. The French have their position and we have our position."

"All I say to you is that there is a lot debate to be had on that issue yet."

The conference of Europe's heads of government had earlier been thrown into disarray as leaders arrived at EU buildings sheltered behind a cordon of razor wire.

The French president, Jacques Chirac, told journalists as he entered that Paris would use its UN veto to block the second resolution needed to put Iraq in "further material breach" of 1441.

"There is no need for a second resolution today, which France would have no choice but to oppose," he said.

London can take some consolation that the EU statement - urging "immediate and final" cooperation from Baghdad may tie Chirac's hands as he plays for time over the coming weeks.

Both euro hawks and doves are claiming victories after a day of EU horsetrading and one-upmanship ended with a text that insists Europe wants peace but is prepared to go to war.

The nations of "old Europe" - led by France, Germany and Belgium - believe the European Council has committed to the United Nations route.

Others who have backed the tougher US stance - led by the UK, Italy and Spain - point to wording calling on Saddam Hussein to disarm immediately or face the consequences.

But behind the agreed phrases the summit has failed to paper over Transatlantic cracks - with the battle moving on to the UN security council and the struggle by the US/UK alliance to secure a second resolution.

German doves have celebrated that a British formulation that "time is running out" for Saddam was dropped from the final declaration.

"That was not acceptable for us," said chancellor Gerhard Schroeder.

Other European players concerned at the UK's approach are pleased with wording that spells out the EU's peaceful objective.

"The EU's objective for Iraq remains full and effective disarmament...We want to achieve this peacefully. It is clear that this is what the people of Europe want," states the summit communique.

Text declaring military action the "last resort" has been claimed as a trophy by both sides.

Hawks argue that the wording opens the door to strikes if Baghdad continues in non-compliance with UN inspectors and resolutions, doves insist that they have checked a drift to war.

"War is not inevitable. Force should be used only as a last resort. It is for the Iraqi regime to end this crisis by complying with the demands of the security council," said the leaders.

As diplomacy intensifies in the UN, Britain will point France - with its call for weapons inspectors to be given more time - to "last chance" clauses that appear to signal that Iraq's time, is indeed, running out.

"We reiterate our full support for the ongoing work of the UN inspectors. However, inspections cannot continue indefinitely in the absence of full Iraqi cooperation," said the EU statement.

"Baghdad should have no illusions: it must disarm and cooperate immediately and fully. Iraq has a final opportunity to resolve the crisis peacefully. The Iraqi regime alone will be responsible for the consequences if it continues to float the will of the international community and does not take this last chance."