Gordon Brown has told MPs that the economy and not institutional reform is now the EU's priority.

In a Commons statement on last week's European Union Council , where he signed the controversial EU reform treaty in Lisbon before attending his first EU summit as prime minister in Brussels, Brown insisted that the document provides a "stable and lasting institutional framework and completes a process of institutional reform for the foreseeable future".

Having agreed it, Europe must now turn its "immediate attention to the economic consequences of the global financial turbulence that started in America in August" he argued.

He said EU leaders had decided to prioritise the problem in the next six months through short-term assistance and to take "long-term decisions to ensure, in testing times, the stability of the economy".

This will include a "renewed focus on modernising the single market", with Britain backing the "full implementation of the services directive by 2009".

He also said there had been a "commitment to concluding a successful Doha trade round" and proposed "better European Union-USA trade links".

Brown also said he had invited German chancellor Angela Merkel and French president Nicolas Sarkozy to London to discuss their October paper on the EU economy.

International

He also outlined other international items on the Council's agenda: Kosovo, Turkey, Iran and Burma.

On Kosovo he reiterated that the government regarded supervised independence for as "the best way forward" after separation talks with Serbia broke down.

On Turkey he said that accession talks would continue at a conference in Brussels this week.

And on Iran he added that the "latest assessment is that sufficient progress has not been made" on opening up its nuclear programme to international scrutiny.

The EU "reiterated our support for a new UN mandate", Brown reported.

"Iran has a choice: confrontation... or, if it changes its approach, a new relationship with the rest of the world," he said.

The prime minister also praised the Bali agreement on reducing carbon emissions, saying the EU "will work together to deliver our commitments on tackling climate change".

Treaty

On the treaty, Brown maintained that Britain had secured all of its so-called 'red lines' on opt-ins and opt-outs from pooling sovereignty in home affairs, national security and foreign policy.

And he said that "nothing in the charter of fundamental rights challenges the rights already set down in UK law".

He reported that a reflection group had been set up "to identify key issues the Union is likely to face in 2020".

However he added that its remit "specifically states" it shall not discuss institutional changes.

Foreign secretary David Miliband also published the EU Amendment Bill on Monday which will put the treaty into UK law.

And Brown said that "we have built into the legislation proper safeguards".

Any subsequent moves towards qualified majority voting "would have to be subject to a prior vote by this House" he said.

'Constitution'

"The conclusions of the Council state specifically that we expect no change in the institutional framework for the foreseeable future," the prime minister promised.

"Protections that have been agreed in the amending treaty defend the British national interest.

"In the bill introduced today we are legislating for new protections and new procedures to lock in our protection of these interests.

"And Europe is now moving to a new agenda, one that focuses on the changes needed to meet the challenges of the global era."

However Conservative leader claimed that "the key issue is the referendum".

"He simply will not restore trust in politics unless he keeps his commitment to hold one," David Cameron declared.

"I am delighted that the government has finally adopted our position of saying that Europe should focus on the real issues and not institutional reform.

"However the whole country will ask: 'How can he possibly say that having just signed up to an all-encompassing constitution that transfers powers from Westminster to Brussels?'.

"And how can he say it when he won't even put this constitution, with its massive institutional changes, to the British people in a referendum?"