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New Lisbon divisions mar EU talks EU nears Irish treaty compromise
(about 7 hours later)
EU talks on the Lisbon Treaty have been marred by a rift over demands made by the Republic of Ireland - which rejected the treaty in a 2008 vote. EU leaders are finalising guarantees to enable the Lisbon Treaty to win a "Yes" vote in a second Irish referendum.
Irish PM Brian Cowen wants a protocol put into the EU's founding treaty to safeguard Ireland's sovereignty over its military, tax and abortion laws. Ireland is due to get legally-binding assurances that Lisbon will not affect Irish policies on military neutrality, taxes and abortion.
Some EU countries fear reopening the debate may encourage treaty opponents. The EU is also expected to promise a "protocol" on the guarantees, to be attached to an EU treaty in future.
The EU leaders did agree in principle to a new framework of rules to oversee the financial sector. On Thursday leaders backed Jose Manuel Barroso for a new term as president of the European Commission.
And they also gave unanimous backing to a motion nominating Jose Manuel Barroso for a second term as president of the European Commission. They also agreed in principle to a new framework of rules to oversee the financial sector.
Second referendum? Smoothing concerns
The Lisbon Treaty is a complex set of institutional changes aimed at making the enlarged EU more efficient. It replaced the EU constitution, rejected by French and Dutch voters in 2005.
EU plans tougher finance rules
Supporters want to avoid any new round of referendums on it, after years of negotiations.
Opponents see the treaty as part of a federalist agenda aimed at weakening national sovereignty.
The treaty has been ratified in most EU countries and the second Irish referendum - expected to be in October - is the biggest remaining hurdle.The treaty has been ratified in most EU countries and the second Irish referendum - expected to be in October - is the biggest remaining hurdle.
I just want to make sure it solves their problem without creating problems for anyone else Fredrik ReinfeldtSwedish Prime Minister class="" href="/2/hi/europe/8107361.stm">Irish treaty guarantees in brief class="" href="/2/hi/europe/6901353.stm">Q&A: The Lisbon Treaty class="" href="/2/hi/europe/8107596.stm">EU summit: Main issues class="" href="/2/hi/business/8108380.stm">EU sets basis for finance reform Irish Prime Minister Brian Cowen said fears that the EU might be able to override Irish policies were among the factors that prompted voters to reject the Lisbon Treaty in a referendum last year.
The Irish government says fears that the EU might be able to override Irish policies on military neutrality, tax and abortion were among factors prompting voters to reject the treaty in a referendum last year. This decision will not necessitate any re-ratification of the treaty Draft EU summit conclusion class="" href="/2/hi/europe/8107361.stm">Irish treaty guarantees in brief class="" href="/2/hi/europe/6901353.stm">Q&A: The Lisbon Treaty class="" href="/2/hi/europe/8107596.stm">EU summit: Main issues class="" href="/2/hi/business/8108380.stm">EU sets basis for finance reform
The EU guarantees - still under discussion - are designed to allay such fears. The draft summit conclusions say the EU decision "gives legal guarantee that certain matters of concern to the Irish people will be unaffected by the entry into force of the Treaty of Lisbon".
"This is necessary if I am to call, and win, a second referendum," Mr Cowen said in a letter to UK leader Gordon Brown. "This decision will not necessitate any re-ratification of the treaty," the draft says.
Even though it has passed their parliaments, the Eurosceptic Czech and Polish presidents have refused to sign the treaty unless it passes the Irish referendum. Supporters of the treaty - a complex set of institutional changes aimed at making the enlarged EU more efficient - want to avoid any new round of referendums on it, after years of negotiations.
But the British Conservatives' pledge to hold a referendum, if elected, means pro-treaty governments now face a race against time, says the BBC's Laurence Peter in Brussels. Opponents of the treaty see it as part of a federalist agenda aimed at weakening national sovereignty.
Sweden, which takes over the EU's rotating presidency next month, does not want any further delays over Lisbon. A proposal that the Irish "protocol" be added to Croatia's EU accession treaty appears to have been dropped, because Croatia's negotiations are in trouble. But attaching it to another EU treaty is not expected to raise legal difficulties.
Referring to the Irish guarantees, Swedish Prime Minister Fredrik Reinfeldt said: "I just want to make sure it solves their problem without creating problems for anyone else." Sweden, the incoming holder of the EU presidency, is anxious to avoid any more delays over Lisbon, especially as Britain's Conservative Party has pledged to hold a referendum on the treaty if elected to government
Czech PM Jan Fischer, chairing the summit, said there was a "sound basis" for an agreement with Ireland. Financial concessions
"There won't be any reopening of ratification of the Lisbon Treaty. The positions are getting closer. The question is how to construe the word 'protocol'," he said. The EU leaders are expected on Friday to back a framework for enhanced oversight of the financial sector, after the UK won key concessions to the plans.
Financial watchdog The UK had opposed proposals to give a new oversight body the ability to order national governments to use taxpayer money to bail out failing banks.
EU officials say there is a deal in principle on a new EU-wide system of financial supervision, with even Mr Brown accepting the need for harmonised rules. EU plans tougher finance rules
But the UK does not want the European Central Bank to have the key supervisory role in a new European Systemic Risk Board, which will look out for any threats to financial stability across the EU. The draft summit conclusions say the European Council - the assembly of EU leaders - "stresses that decisions taken by the European Supervisory Authorities should not impinge in any way on the fiscal responsibilities of member states".
Advertisement The leaders want the European Commission to deliver detailed proposals for the new supervisory bodies by early autumn, so that the new framework will be in place next year.
Leaders hope tougher new rules will prevent another crisis UK Prime Minister Gordon Brown has now accepted the French and German demand that a new European Systemic Risk Board should be chaired by the head of the European Central Bank. The board's job will be to spot any threats to financial stability across the EU.
There are also concerns that new European regulators would be able to overrule a national government, for example by instructing it to bail out a particular firm.
The delegations are now working to establish the new supervisors' competencies, before the fine details are worked out by the Commission.
Many of the delegations called for Commission proposals on financial regulation before September, EU officials said.
The discussions centre on recommendations by an expert panel headed by Jacques de Larosiere, a former IMF managing director.
The leaders had the easier task of nominating the conservative Jose Manuel Barroso for a second term as EU Commission president.The leaders had the easier task of nominating the conservative Jose Manuel Barroso for a second term as EU Commission president.
He had no rival - and even had backing from some centre-left leaders. He had no rival - and even had backing from some centre-left leaders. His nomination now needs the approval of the European Parliament next month.
Sweden's PM Fredrik Reinfeldt said: "This is not the time to make confusions in the EU leadershipÂ… he has broad support." Mr Barroso said on Thursday he was proud to have unanimous backing from the EU leaders.
The summit will also touch on preparations for the UN conference on climate change, coming up in December.
The Czech Republic, chairing its last summit as EU president, wants the debate to focus on EU support for developing countries, to help them mitigate the effects of climate change.