They ended their weekend talks with calls to cut the cost of borrowing to prevent a possible global recession.

Many of the leaders suggested that the risk of deflation might now be greater than that of inflation.

The meeting coincided with a shift to the centre-left in western European governments.

Making his EU debut, the incoming German Chancellor, Gerhard Schröder, urged his fellow leaders to make the battle against unemployment their number one priority. EU unemployment currently stands at 18 million.

He called for an EU jobs pact by the end of the year - a clear break with his conservative predecessor Helmut Kohl.

Nevertheless, Mr Kohl's contribution to Europe was marked by the award of an honorary European citizenship, which had previously only been given to Jean Monet, one of the founding fathers of what became the EU.

Massimo d'Alema, Italy's new ex-communist prime minister and another newcomer to EU summits, called for a European programme to boost industrial investment.

He also proposed a relaxation of the strict "stability pact" rules which require single currency countries to aim for balanced budgets and which can impose stiff fines. He said spending on investment should not be allowed to result in countries breaching the guidelines.

People power

The summit's original agenda, to bring the EU closer to ordinary people, was not forgotten and did yield some significant results.

The European Commission was given what amounts to a warning not to dream up proposals on issues that may be better handled by national or local administrations.