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EU leaders struggle over treaty Poland pressed on EU treaty deal
(about 4 hours later)
European Union leaders have begun a second day of tough negotiations in Brussels amid disagreements over new rules to run the 27-member bloc. Germany's chancellor is stepping up efforts to broker a compromise with Poland over a draft treaty to replace the failed EU Constitution.
German Chancellor Angela Merkel is trying to broker compromises with the UK and Poland, who are threatening to veto plans for a new constitution. Angela Merkel met Polish President Lech Kaczynski three times in 12 hours, in a bid to overcome objections to planned changes to the EU voting system.
The UK has also threatened to veto new rules to run the 27-member bloc.
Diplomats say there are signs of movement at the EU summit in Brussels, but tough negotiations are continuing.
The original treaty perished when Dutch and French voters rejected it in 2005.The original treaty perished when Dutch and French voters rejected it in 2005.
A new source of disagreement on the text emerged on Friday over a reference to free competition. 'Red lines'
In proposals drafted by Germany, which holds the rotating EU presidency, the constitution's commitment to "an internal market where competition is free and undistorted" was shortened to just "an internal market". The German chancellor, who holds the EU presidency until the end of June, has held one-on-one meetings with the leaders of Poland, the UK, the Netherlands and Czech Republic, in a bid to overcome objections to how the EU should be run in the future.
Critics said the move - which came at France's urging - undermined one of the founding principles of the common market. "We're working hard. The problems are not yet solved but everyone is trying," said Ms Merkel.
We have no outcome, no result to announce German Chancellor Angela Merkel Send us your comments class="" href="/1/hi/world/europe/4596005.stm">Q&A: Changing constitution AIMS OF THE SUMMIT To replace, and reduce, the EU constitution rejected by French and Dutch voters in 2005To simplify voting procedures in an expanded EUTo replace the six-month rotating presidency of the EU with a full-time figurehead, chosen by membersA foreign policy supremo to give the EU increased weight on the international stage href="/1/hi/world/europe/6222882.stm">Sticking points and objectors class="" href="/1/hi/world/europe/6230776.stm">Struggle for scraps of news class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=6629&&&edition=1&ttl=20070620220825">Send us your comments
British Prime Minister Tony Blair sought clarification from French President Nicolas Sarkozy - and was "reassured" by his explanation, a British spokesman said. Various solutions have been offered to try to overcome Poland's objections to a new voting system, which Warsaw says would give too much influence to Germany.
There were 13 other references to free market competition in existing EU treaties, so the EU's powers over competition would not be changed, he said. There was alarm in some quarters after the Polish president said the reason his country did not have a larger population - and therefore greater voting power - was that so many Poles were killed by Germans in World War II.
Talks between the German and Polish leaders opened proceedings on Friday, but the agenda was otherwise fairly loose, with bilateral talks likely to focus on key issues.
After two-way talks, the 27 leaders are set to gather again at lunchtime.
The Germans are at some stage expected to produce a new draft of the mandate for the future treaty.
'Absurd' statement
British Prime Minister Tony Blair - attending his final EU meeting before leaving office next week - has set out a number of "red lines" beyond which he will not compromise.British Prime Minister Tony Blair - attending his final EU meeting before leaving office next week - has set out a number of "red lines" beyond which he will not compromise.
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.
AIMS OF THE SUMMIT To replace, and reduce, the EU constitution rejected by French and Dutch voters in 2005To simplify voting procedures in an expanded EUTo replace the six-month rotating presidency of the EU with a full-time figurehead, chosen by membersA foreign policy supremo to give the EU increased weight on the international stage class="" href="/1/hi/world/europe/6222882.stm">Sticking points and objectors class="" href="/1/hi/business/6229300.stm">'Free competition' dropped Britain also wants to maintain national control over foreign policy, justice and home affairs. Britain also wants to maintain national control over foreign policy, justice and home affairs.
Poland's Prime Minister Jaroslaw Kaczynski says he wants to narrow the gap in voting strengths between the big and small countries, that the current draft would create. In a last minute complication, the UK and others asked for clarification on why a key reference to the EU's commitment to free competition had been dropped from the draft treaty at the request of the French.
The Netherlands and the Czech Republic also have concerns about the draft. In proposals drafted by Germany, the constitution's commitment to "an internal market where competition is free and undistorted" was shortened to just "an internal market".
After the first day of the two-day summit, Mrs Merkel said: "We have no outcome, no result to announce." French President Nicolas Sarkozy explained that there were 13 references to free market competition in existing EU treaties, so the EU's powers over competition would not be changed, a British spokesman said, adding that Mr Blair was "reassured".
As she arrived on Friday morning she said: "We shall continue to work hard. Each and everyone of us is trying our level best." 'Fresh crisis'
New French President Nicolas Sarkozy, for his part, said he had seen "a strong willingness to find a compromise" on Thursday. The BBC's Oana Lungescu in Brussels says EU diplomats are sounding more hopeful that they will not have to spend a second night deep in negotiations.
Nevertheless, there was alarm in some quarters after the Polish president said the reason his country did not have a larger population - and therefore greater voting power - was that so many Poles were killed by Germans in World War II. The British Government seems none too worried about Mr Sarkozy ripping out references to 'free trade' and 'competition' BBC Europe editor Mark Mardell class="" href="http://www.bbc.co.uk/blogs/thereporters/markmardell/">Mardell's thoughts in full class="" href="/1/hi/world/europe/6227834.stm">Polish war of words class="" href="/1/hi/world/europe/4596005.stm">Q&A: Changing constitution
Danish Prime Minister Anders Fogh Rasmussen said it was an unfortunate statement and a distraction. The Germans are expected to table new proposals. According to one diplomat, there is some optimism a compromise formula could be agreed over dinner, our correspondent says.
"It's an absurd idea to base today's decisions on a very tragic history," he said. The document makes several concessions to EU member states that had opposed key parts of the planned constitution.
'Main course'
The EU leaders finished the day with a working dinner at which they set out their positions.
The British Government seems none too worried about Mr Sarkozy ripping out references to 'free trade' and 'competition' BBC Europe editor Mark Mardell Mardell's thoughts in full Polish war of words
"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".
"What Chancellor Merkel has put on the table can deliver that capacity to act," Mr Barroso said.
The German document makes several concessions to EU member states that had opposed key parts of the planned constitution.
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. Proposed changes include:
  • New voting system to approve decisions
  • Full-time president of European Council instead of current system where members take six-month turns
  • New foreign affairs head and a smaller commission
Correspondents say failure to reach a deal on the treaty 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 to reach a deal on the treaty 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.