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EU leaders struggle over treaty EU leaders struggle over treaty
(about 2 hours later)
European Union leaders are facing a second day of tough negotiations in Brussels amid disagreements over new rules to run the 27-member bloc.European Union leaders are facing a second day of tough negotiations in Brussels amid disagreements over new rules to run the 27-member bloc.
After a first day of talks, German Chancellor Angela Merkel said there had been no breakthrough.After a first day of talks, German Chancellor Angela Merkel said there had been no breakthrough.
Germany, which holds the rotating EU presidency, has drafted proposals to replace a planned constitution rejected by French and Dutch voters in 2005.Germany, which holds the rotating EU presidency, has drafted proposals to replace a planned constitution rejected by French and Dutch voters in 2005.
But both UK and Poland are threatening to use their vetoes. But both the UK and Poland are threatening to veto the blueprint.
British Prime Minister Tony Blair - attending his final EU meeting before leaving office next week - has set out a number of "red lines" which he regards as unacceptable.British Prime Minister Tony Blair - attending his final EU meeting before leaving office next week - has set out a number of "red lines" which he regards as unacceptable.
These include proposals to make the EU Charter of Fundamental Rights legally binding.These include proposals to make the EU Charter of Fundamental Rights legally binding.
We have no outcome, no result to announce German Chancellor Angela MerkelWe have no outcome, no result to announce German Chancellor Angela Merkel
Britain also wants to maintain national control over foreign policy, justice and immigration.Britain also wants to maintain national control over foreign policy, justice and immigration.
Poland's Prime Minister Jaroslaw Kaczynski has suggested that his country deserves a greater share of voting rights than it is being offered under the current draft.Poland's Prime Minister Jaroslaw Kaczynski has suggested that his country deserves a greater share of voting rights than it is being offered under the current draft.
The Netherlands and the Czech Republic also have concerns about the draft.The Netherlands and the Czech Republic also have concerns about the draft.
'Time to move on''Time to move on'
After the first day of the two-day summit, Mrs Merkel said: "We have no outcome, no result to announce."After the first day of the two-day summit, Mrs Merkel said: "We have no outcome, no result to announce."
She told reporters that the leaders would "make all necessary efforts to reach an agreement" on Friday, but said she did not know whether this was possible.She told reporters that the leaders would "make all necessary efforts to reach an agreement" on Friday, but said she did not know whether this was possible.
Poland wants greater voting rights than current proposals allowNew French President Nicolas Sarkozy, for his part, said he had seen "a strong willingness to find a compromise".Poland wants greater voting rights than current proposals allowNew French President Nicolas Sarkozy, for his part, said he had seen "a strong willingness to find a compromise".
The EU leaders finished the day with a working dinner at which they set out their positions.The EU leaders finished the day with a working dinner at which they set out their positions.
"It was dinner, but we can describe it as the entree, the main course is tomorrow," said European Commission President Jose Manuel Barroso."It was dinner, but we can describe it as the entree, the main course is tomorrow," said European Commission President Jose Manuel Barroso.
He added that Europe had been discussing institutional reform for seven years and that it was now "time to move on".He added that Europe had been discussing institutional reform for seven years and that it was now "time to move on".
"What Chancellor Merkel has put on the table can deliver that capacity to act," Mr Barroso said."What Chancellor Merkel has put on the table can deliver that capacity to act," Mr Barroso said.
The German draft makes several concessions to EU member states that had opposed key parts of the planned constitution.The German draft makes several concessions to EU member states that had opposed key parts of the planned constitution.
Failure would almost amount to humiliation for Germany's chancellor, Angela Merkel Mardell's thoughts in full Polish war of words EU summit sticking pointsFailure would almost amount to humiliation for Germany's chancellor, Angela Merkel Mardell's thoughts in full Polish war of words EU summit sticking points
It removes any mention of the word "constitution", accepts that the title of EU-wide foreign minister will not be used, and provides countries with a chance to opt out of EU policies in the area of policing and criminal law.It removes any mention of the word "constitution", accepts that the title of EU-wide foreign minister will not be used, and provides countries with a chance to opt out of EU policies in the area of policing and criminal law.
The draft proposes a new voting system to approve decisions; a full-time president of the European Council instead of the current system where members take six month turns; a new foreign affairs head and a smaller commission. The draft proposes a new voting system to approve decisions; a full-time president of the European Council instead of the current system where members take six-month turns; a new foreign affairs head and a smaller commission.
Ms Merkel is to hold separate meetings on Friday morning with the Polish, British and Dutch leaders.Ms Merkel is to hold separate meetings on Friday morning with the Polish, British and Dutch leaders.
The BBC's Oana Lungescu in Brussels says that by lunchtime, when the 27 leaders gather again, she should have a better idea if an agreement on a new treaty can be reached. The BBC's Oana Lungescu in Brussels says that by lunchtime, when the 27 leaders gather again, the German leader should have a better idea if an agreement on a new treaty can be reached.
Correspondents say failure would plunge the EU into a fresh crisis as deep as the one that followed the rejection of the constitution two years ago.Correspondents say failure would plunge the EU into a fresh crisis as deep as the one that followed the rejection of the constitution two years ago.
The summit has reached one decision, however: leaders agreed to allow Cyprus and Malta to adopt the European single currency, the Euro, beginning in January 2008. The summit has reached one decision, however: leaders agreed to allow Cyprus and Malta to adopt the European single currency, the euro, beginning in January 2008.