Blair loses fight for 'refugee protection' zones

Tony Blair lost his battle to win EU funding and political support for pilot schemes to set up refugee "protection zones", but pledged to pursue the plans with like-minded nations.

At the start of a summit in Greece last night, Germany and Sweden blocked moves to give the initiative EU status, forcing Britain to seek an ad hoc group of allies with whom to pursue the project. Mr Blair wants to set up a pilot scheme by the end of this year, which would establish "zones of protection" to harbour refugees near their own country. The first trial was expected to be in the Horn of Africa.

In the face of outrage from human rights groups, and fierce opposition from Germany and Sweden, Britain has backed away from an earlier proposal to set up "transit camps" to process asylum-seekers before they entered Europe. But last night Germany, whose constitution lays down the right to seek asylum as a core value, made clear that it still had difficulties with the modified British ideas. Sweden, which has a long tradition of protecting human rights, had legal objections.

Under a compromise deal, all mention of the pilot projects was removed from the summit conclusion, although a reference to the "protection capacity of regions of origins" remained. Downing Street's spokesman said: "Individual countries will go ahead with pilot projects with the European Commission and the office of the United Nations High Commissioner for Refugees (UNHCR). The Commission will report back next year. The important point is that work will continue."

The UK is hoping that a "coalition" of supportive countries, such as the Netherlands, Denmark and possibly Austria will help the scheme to win backing. Although Mr Blair's spokesman said that he believed "there is a possibility that we will get EU funding", that prospect remains doubtful.

Goran Persson, Sweden's Prime Minister, said he did not think the British plan would gain any significant support. Earlier, German government officials expressed "severe doubts" about the plan. One EU diplomat said: "It is hard to see how this could be agreed as an EU plan." Another added that he "would be very reluctant to see a pilot project financed by the Community".

The proposed centres would be operated by the EU and the UNHCR. The Government has argued that, by allowing protection for people in areas where a humanitarian crisis is threatened, they would be able to return to their homes more easily. Failing that, asylum claims could be processed on the spot. That would prevent huge build-ups of would-be migrants within the EU.

EU leaders in the resort of Porto Carras also discussed plans to improve information sharing on visa applicants, greater co-operation among border guards and a refugee returns policy. Britain's original plans for transit camps based in the Balkans or Ukraine, were strongly favoured by David Blunkett, the Home Secretary.

But they ran into strong opposition from Germany and Sweden, and refugee groups, because of the suggestion that asylum-seekers arriving in Britain could be deported to the camps. Other nations also argued that they might become magnets for would-be refugees. Mr Blair's official spokesman said yesterday: "We are at the discussion stage, rather than the decision stage.

"But the idea is certainly worth looking at and discussing. Asylum is a global problem and it is appropriate to have long-term global solutions." A British government source admitted: "This is on the back burner for the time being. Other countries are nervous about anything that smacks of a camp. The word has unfortunate echoes in Germany. But we need to think outside the box on asylum because it is such a big issue."