We're here to say 'no' to the European Union

Protester Ada Colau

The BBC's Malcolm Brabant says it is not clear how the clashes began, but the vast majority of the marchers, from anti-globalisation campaigners to Basque nationalists, were not involved.

The EU leaders had earlier agreed a number of moves designed to push forward free-market reforms.

The centre-piece was a compromise deal to allow competition in supplies of gas and electricity to businesses from 2004.

But a bid to extend this to supplies for homes was blocked by France.

Various grievances

The demonstrators - who had been marching from Placa de Catalunya to the harbour front - were protesting against everything from the Euro and free-market globalisation to Israeli violence.

The press were also caught in the violence

Along with communists, Greens, and the opponents of globalisation are Catalan and Basque nationalists.

There was also a group of anti-Americans masquerading as Afghan prisoners detained at Camp X-ray in Cuba.

Police moved in as young militants, some hooded or wearing masks, set fire to rubbish cans and threw stones bottles and flares.

Police said some banks and storefronts were wrecked and there were 38 arrests.

The game at the Nou Camp was delayed

"We're here to say 'no' to the European Union, which... is becoming a model for globalisation and is more like the US in favour of arms and war," said Ada Colau, a spokeswoman for the march organisers.

The protest even encroached on one of the biggest Spanish football matches of the season, between Barcelona and Real Madrid, in Barcelona on Saturday evening.

The game had to be stopped briefly as two demonstrators who had handcuffed themselves to the goal posts were removed.

Elections condemned

Ending their two-day summit, European leaders agreed to open up electricity and gas markets, to raise the retirement age and to increase job mobility.

They also condemned last weekend's elections in Zimbabwe, called on Israel to withdraw its forces from all Palestinian areas, and hailed Serbia and Montenegro's decision to form a loose federation.

Aznar: "Fundamental step"

The summit's key decision is to allow industries and businesses to shop around between different countries' electricity and gas suppliers from 2004 onwards.

But in a concession to France, where the issue is sensitive ahead of next month's presidential election, non-business consumers will not be included.

According to one report, France agreed to the deal after Spain dropped a proposal for rapid liberalisation of the rail freight market.

Though some leaders expressed disappointment at the compromise, Spanish Prime Minister, Jose Maria Aznar, said business consumers made up 70% of the market.

"We have taken a fundamental step today," he said.

Tax cuts

In an attempt to encourage workers to look for jobs abroad, the summit agreed on the creation of an EU-wide health insurance card, guaranteeing the holder treatment in any country.

They also agreed by 2010 to:

• boost funding for research and development to 3% of GDP
• provide daycare for 90% of children of working mothers
• raise the average retirement age from 58 to 65

There were also pledges to increase vocational training and education standards, boost internet usage by young Europeans, and cut taxes for low earners.

The leaders agreed that they were behind schedule with the changes planned at the Lisbon summit two years ago, to make the EU the world's most dynamic knowledge-based economy by 2010 and to create 20 million new jobs.