TONY BLAIR seized on the French “no” vote yesterday to back his case for greater economic reform, telling EU members the result showed they must face up to the challenges of globalisation.

He said the clear message was that voters were anxious about jobs and economic security and wanted to see more leadership from the EU. Speaking from Tuscany, where he is on holiday, the Prime Minister said while the debate over the constitution had been necessary, it did not reflect the concerns of ordinary people.

“I think that underneath all this there is a more profound question which is about the future of Europe, and in particular the future of the European economy and how we deal with the modern questions of globalisation and technological change,” he said.

While institutional reform was important, voters were clearly more concerned with jobs, economic security, public services and welfare reform.

He called for “a time of reflection” after the result and said it was too soon to say whether a referendum would go ahead in Britain. Mr Blair does not want to kill off the treaty before the Dutch vote tomorrow.

The Prime Minister wants to ensure Britain’s six-month presidency of the EU, which starts in July, does not get bogged down in trying to patch up the constitution in a form more palatable to France. Officials say it would also be unfeasible to try to salvage the parts of the constitution Britain particularly likes and implement them without a referendum.

Instead, Mr Blair wants the European Council on June 16 to agree a timetable to discuss greater economic reform. Jack Straw, the Foreign Secretary, got to work yesterday calling his counterparts in France and Germany to discuss how Britain would like to proceed.

The Conservatives called on Mr Blair to end the uncertainty and make clear what the future is for the constitution. “[The Government] can either accept that the . . . constitution is finished and use this as an opportunity to take Europe in a new direction, a direction people want to create jobs and growth. Or it must agree that if any part of the constitution is to go ahead, the British people must still have their say in a referendum as soon as possible,” Liam Fox, the Shadow Foreign Secretary, said.

Europe is now unlikely to be an issue in the Tory leadership contest, in which Dr Fox is expected to stand. That could make it easier for pro- Europeans, such as Kenneth Clarke, to stand. Yesterday Mr Clarke refused to be drawn on whether he was now more likely to stand as a candidate.

Q&A

Does it affect when Tony Blair will quit?

A referendum would have provided Mr Blair with a suitable hopping-off point, whatever the result. If Britain voted “yes”, he would leave in a blaze of glory. Even a “no” vote would have allowed him to say he left office having fought for something he believed in. No referendum means he will have to engineer another suitable point of departure.

Does this make any difference to the Conservative leadership?

It had been expected that the referendum would form the backdrop for the Tory leadership campaign, with contenders eager to flex their eurosceptic muscles.

Does this make any difference to the row over Britain’s budget rebate?

Britain is under pressure as never before to give way on its £3 billion rebate. France is almost certain to retaliate to Britain’s call that the ratification process stops by demanding an end to the 21-year-old subsidy.

Will it mean any other changes to British life?

Tony Blair is eager that the Services Directive, which could help to address skills shortages, is ratified. It would allow workers from the 25 member states to work anywhere in the EU. But France is opposed and could hold up its progress to punish Mr Blair.

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