EU leaders to partially open up energy markets

BARCELONA, Spain -- Eager to get economic reforms back on track, European Union leaders signed off on a slew of pledges Saturday to cut red tape and boost Europe's floundering economies.

The leaders, however, announced a deal that would only partially open energy markets to competition, one of the more contentious areas of reform at the two-day EU summit that ended Saturday.

The opening up of national markets, boosting investment in education and research and development and promoting high technology are all part of the EU drive to become the world's most "dynamic economy" by 2010.

Admitting that they failed to meet targets set two years ago, EU leaders say they are adamant in pushing through reforms in an attempt to catch up to the United states and boost job creation.

The summit was followed by a march and rally by tens of thousands of protesters who banged drums, blew whistles and carried banners with slogans such as "Terror USA" and "Against A Capitalist Europe."

The rally was peaceful, but about 200 violent protesters rioted after it ended, smashing windows and throwing rocks and gas bombs at police who fired rubber bullets and used truncheons to subdue them.

Spanish Prime Minister Jose Aznar, the summit host, called the agreements reached during the meeting a "fundamental step" to freeing Europe from the last vestiges of state monopolies.

"There is a new economic direction taking shape," British Prime Minister Tony Blair told reporters. Dutch Prime Minister Wim Kok said by recommitting to strict economic targets "we have a new impulse," he said.