There is blame to go around and personally, I put most of it on the EU side. They had the chance to go for open skies and threw it away, because they wanted something that (a) wasn't - and won't ever be - on the table and (b) even if it could be gained, would it ever be used? Would any EU carrier actually want to set up in the US - and be cut to pieces. The sad reality is that the main proponents of the drive for cabotage is the UK, driven on in turn by the UK carriers, which know that "no news is good news" as far as their position in LHR is concerned.
Having been in correspondence with the EU Commissioner's office, I was told that Regulation 847/04 relates to the right of EU states to enter into direct negotiations with the US (or indeed any other state) and (to paraphrase), it says that where community negotiations are ongoing, they must await the approval of the EU to enter into and conclude negotiations.
So, basically, having messed up their own negotiations, the EU is also messing things up for others too.
Does anyone know if any new EU/US negotiations are scheduled this side of the November election? (Somehow I doubt it).