Prime Minister Tony Blair said Monday that securing a deal on the European Union budget is key to meeting the challenge of global economic competition. Blair _ whose country now holds the rotating EU presidency _ hopes to reach a deal for the 2007-2013 budget by December. "It is important that the financing deal is seen as part of the bigger picture where we are trying to move Europe forward in the direction of reform and change, which Europe needs to modernize its economy," Blair told reporters after meeting Malta's Prime Minister Lawrence Gonzi. "We face enormous competitive challenges from China, India, America and Japan," Blair was quoted as saying by The Associated Press.