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France, Germany face EU revolt over Treaty change

Published 28 October 2010
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European Commission Vice-President Viviane Reding is leading a growing chorus of opposition to plans for tougher euro zone rules, describing Franco-German plans to reopen the EU Treaties as "irresponsible" ahead of a European summit starting in Brussels today (28 October).

"I did not appreciate what happened in Deauville," Reding said, referring to the seaside town where France and Germany struck a deal last week to enshrine tougher rules for the euro zone in a new EU treaty.

"Do you remember what happened with the Lisbon Treaty? It took ten years to get it approved. It would be irresponsible to open that Pandora's Box," Reding told a press conference in Brussels yesterday (27 October).

In an interview with German paper Die Welt, Reding added that Paris and Berlin were "insulting" other nations by trying to impose decisions on the other EU member states.

The reaction from Paris did not wait long. "The terms this European commissioner uses to denigrate the France-German proposals are unacceptable and of the same tenor as the insulting language, which I will not forget, used against France during the controversy that she herself fuelled over the Roma," said Pierre Lellouche, the French State Secretary in charge of European affairs.

Although Reding's line is shared by many others at the European Commission, the EU executive did not officially back the vice-president. "What was expressed by Vice-President Viviane Reding were her personal views," said spokesperson Olivier Bailly at a briefing yesterday.

Growing hostility to Franco-German plans

The row comes as European leaders meet today (28 October) for a European summit in Brussels where the Franco-German proposal is expected to be met with growing hostility from other EU member states.

Jean-Claude Juncker, president of the Eurogroup and prime minister of Luxembourg, Reding's home country, echoed the commissioner's remarks, saying the Franco-German plan was "unacceptable because it does not guarantee a serious path towards stability".

The deal "leaves a bad taste" for other EU states, which feel they are being told what to do, Luxembourg Foreign Minister Jean Asselborn added.

Belgian Foreign Minister Steven Vanackere, who chaired a meeting of EU foreign ministers in Luxembourg earlier this week, said countries were wary of opening up a Pandora's Box of institutional reform. "Nobody around the table wants to open up the treaty and change it fundamentally," Vanackere told reporters.

Czech Foreign Minister Karel Schwarzenberg said no-one should assume that even a tweak to the treaty's rules would pass easily. "In this world, anything is possible [...] but it's not very likely," Schwarzenberg said.

Diplomatic sources also confirmed widespread opposition to changing the EU Treaties for whatever reason. "This would mean embarking in a process where other issues could be brought up," warned a Brussels-based diplomat, referring to calls by hardliners in the UK Conservative Party to "repatriate" EU powers to Westminster.

Among big countries, Italy and Poland are also opposed to the Franco-German plan. Warsaw and other Eastern European member states are especially worried that new harsher sanctions would hurt their economies if they meant blocking the EU funding which they say is needed to fuel their economies.

"Do not expect any treaty change to be made at this Council," said an official close to Permanent EU Council President Herman Van Rompuy.

Positions: 

At a centre-left pre-summit meeting held in Brussels today, Party of European Socialists (PES) President Poul Nyrup Rasmussen said he was not against treaty change "in principle," but warned against "pre-judged" changes.

Voicing solidarity with Greece, he called for a "truly European mechanism" for assisting troubled economies. "We need both budget consolidation and jobs - if not, we risk killing the small flowers of growth that already exist," Rasmussen underlined.

Greek Prime Minister George Papandreou played down the prospect of treaty change, saying that the possibility for sanctions to be imposed "already existed in the Lisbon Treaty" and that he was "opposed to discussion on removing voting rights" for countries with poor budget discipline.

"We need growth; it is part and parcel of preventing further crises," he added.

A clearly irritated Martin Schulz, a German MEP and leader of the Socialists & Democrats group in the European Parliament, said that seeking treaty change would be "to open a Pandora's Box," adding that the group didn't want to "split the Union into three groups: France and Germany, the rest of the euro zone and the rest of the EU".

"Why haven't we had a clear message from the president of the Commission?" Schulz asked, in spite of Vice-President Viviane Reding's outspoken statements, adding that he had called the EU executive an hour beforehand to no avail.

"Why are we in such a rush for treaty change?" he continued, regretting how "Merkel and Sarkozy had to first have a walk together" before the summit.

Luxembourg Foreign Minister Jean Asselborn, who was also attending the centre-left summit, called on the Union to "wait for the Commission to speak, as they hold the right of initiative" for proposing legislation to apply sanctions.

At a gathering of European liberal leaders in Brussels today, Danish Prime Minister Lars Lokke Rasmussen and Irish Prime Minister Brian Cowen stated that creating a permanent crisis mechanism for the euro zone should not require treaty change.

Cowen added that a Franco-German proposal to suspend the voting rights of an EU country in violation of eurozone principles was ''not a runner''.

Reding: Reopening treaty 'irresponsible'
Background: 

France and Germany last week proposed setting up a permanent system to handle crises in the euro zone, admitting it would mean changing the EU treaty.

joint statement issued on 18 October by French President Nicolas Sarkozy and German Chancellor Angela Merkel in the French town of Deauville said they agreed new rules were needed to address problems like the sovereign debt crisis that hit Greece earlier this year.

The proposal divided EU foreign ministers at a meeting on Monday (25 October), with several voicing strong opposition to the plans.

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