Sarkozy suggests Blair as first president of the EU

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French President Nicolas Sarkozy caused astonishment yesterday by publicly endorsing Mr Blair for the job, created under the terms of the revived EU constitution.

M Sarkozy, who had dinner with Mr Blair in Paris on Wednesday, praised him as "remarkable" and claimed he would be a "very intelligent" choice.

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Speaking at a charity event in New York, Blair urged Brits to defend their beliefs and strengthen their stance against terrorism

Such an appointment would be disconcerting for Gordon Brown, who has long struggled to escape the shadow of his rival. He conceded yesterday that Mr Blair would be a "great candidate for any significant international job", but he was quick to add: "The treaty has still got to be ratified by every Parliament."

The job will carry a higher status than the current role of European Commission President, held by Jose Manuel Barroso.

He is paid £80,000 a year with expenses of £27,000 for accommodation and £7,000 for entertaining, a car worth up to £75,000 and a £120,000-a-year pension.

Mr Blair would be able to negotiate an even more generous package.

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Mr Sarkozy recently dined with the former Prime Minster in Paris

His spokesman pointedly refused to rule out the move last night, saying only that he was "focused on his current role in the Middle East".