The European Union (EU) remains in a crisis despite Saturday?s deal on its long-term budget and still needs to settle crucial issues such as how far it should expand, a Commission vice-president was quoted saying yesterday.

?The EU crisis has not yet been overcome with this summit,? European Industry Commissioner Guenter Verheugen told the newspaper Bild am Sonntag. ?The Austrian presidency must provide an answer to the big questions. That includes in particular: how many members can the EU cope with??

EU leaders agreed a long-term budget that put the troubled bloc back on track.

The leaders also agreed to make Macedonia a candidate for membership but said its entry would have to await a broader debate on how far the bloc should enlarge. France had called for Macedonia?s candidacy to be put on hold to allow the 25-nation bloc to hold a debate on its future. ?One could say: we are in a pause for thought. But all we see is the pause and not the thought,? Verheugen said.

Austria takes over the six-month rotating EU presidency next month. French President Jacques Chirac has said he plans to make ambitious proposals for changes to EU institutions.

French and Dutch voters earlier this year rejected a proposed EU Constitution designed to modernise those institutions after eastward enlargement.