But Blair rubbed salt in some European leaders' wounds in an interview with The Times published yesterday, saying some people were "in a sort of state of denial" about Bush's victory.
Both Allawi and Blair expressed their determination that the elections in January would go ahead despite persistent violence.
"It's absolutely crucial for the security of our own country that that [elections] happens," Blair told reporters.
"These people that are trying to create circumstances of chaos and instability in Iraq are doing so because of their fear of the democratic process," he said.
In the longer term, the 25-nation EU envisages extending preferential trade terms and preparing a trade and cooperation agreement which would formalize commercial links for the first time once Iraq has a constitution in 2006.
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