Jose Manuel Barroso: 'We would have preferred agreement'

After late-night talks in Brussels, President Sarkozy of France has said attempts to get all 27 European Union countries to agree a new European treaty have failed.

Mr Sarkozy said that instead, the 17 eurozone countries would sign an inter-governmental accord aimed at stabilising the currency in the face of the debt crisis.

Speaking to reporters, European Commission President Jose Manuel Barroso admitted ''we would have preferred a unanimous agreement''.