I've spotted an available domain name featuring the two keywords I require. Hoeevr, it's .EU Assuming that I host the site in the UK (the area I'm targetting) , select UK in the webmaster tools, feature a UK address of the site etc, will the non .co.uk count against me in terms of UK ranking? My guess is that it won't, but as I don't see many .eu sites ranking highly I thought I'd ask.
I'm still interested in an answer to this. It makes snese that country domain extensions benefit those from the countries in question, but what about domain extensions dealing with wider geographical regions, like .eu?