The Irish government has been given four months to devise a strategy resurrecting Europe's grand reform project, with President Nicolas Sarkozy of France suggesting that the Irish may have to stage a second referendum on the incendiary issue.

European leaders early this morning agreed to decide what to do about Ireland's rejection last week of the Lisbon Treaty at a summit in October. But French and German attempts to pile the pressure on Ireland by pushing all other 26 EU countries to ratify the treaty ran into stiff resistance from the Czechs who blocked agreement on a statement to be released today.

Sarkozy, who takes over the EU's presidency in 10 days' time, let it be known he wanted the 26 other member countries to ratify the Lisbon treaty as swiftly as possible. His foreign policy adviser said Ireland should rerun its ballot. Sarkozy also said there would be no further enlargement of the EU until the reform of the EU's institutions foreseen by the …