SHIELDED from demonstrators by riot police, European political and business officials gathered yesterday for a two-day summit on the lagging economy and the last snags to expanding the European Union into eastern Europe.

　　The European Economic Summit brought together officials from EU countries and from the 10 that want to join in 2004, such as Poland and Hungary.

　　Police barricades closed off the area around the conference center, keeping back several thousand Socialists, anarchists and assorted other protesters who accuse the forum of furthering global capitalism, which they see as harmful to workers and the environment.

　　Europe's sluggish growth rate, 0.3 percent in the second quarter for the 12 countries using the euro currency, is expected to be a major topic, with debate fueled by a forum survey that was highly critical of the EU's economic competitiveness.

　　Also on the agenda were remaining snags in the expansion process, which EU officials hope to complete at a December summit in Copenhagen, including arguments about agricultural subsidies.

　　Member countries, particularly Germany, the Netherlands, Sweden and Britain, object to planned US$38.8 million in farm subsidies for the new prospects, including Poland, Hungary and the Czech Republic.

　　Other snags could include an October referendum in Ireland, where voters are being asked to say yes or no to the treaty permitting further expansion. It failed on the first try, in July 2001.

　　The other applicants for EU membership next year include: Slovakia, Slovenia, Cyprus, Malta, Latvia, Lithuania and Estonia.