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New Lisbon divisions mar EU talks New Lisbon divisions mar EU talks
(about 2 hours later)
EU leaders have postponed further discussion of the troubled Lisbon Treaty amid a new rift over guarantees for the Republic of Ireland. 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.
Irish PM Brian Cowen wants not only a legally binding EU political "decision", but also a protocol attached to the EU's founding treaty. 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.
"This is necessary if I am to call, and win, a second referendum," he said in a letter to UK leader Gordon Brown.
Some EU countries fear reopening the debate may encourage treaty opponents.Some EU countries fear reopening the debate may encourage treaty opponents.
The EU leaders did agree in principle to a new framework of rules to oversee the financial sector.
And they also gave unanimous backing to a motion nominating Jose Manuel Barroso for a second term as president of the European Commission.
Second referendum?
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.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.
Supporters want to avoid any new round of referendums on it, after years of negotiations.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.Opponents see the treaty as part of a federalist agenda aimed at weakening national sovereignty.
The EU leaders, meeting in Brussels, are also discussing tightening financial rules. The treaty has been ratified in most EU countries and the second Irish referendum - expected to be in October - is the biggest remaining hurdle.
A proposal to nominate Jose Manuel Barroso for a second term as president of the European Commission was unanimously endorsed by all 27 EU leaders, diplomats said ahead of an official announcement. 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
Treaty wrangling
The Lisbon Treaty has been ratified in most EU countries and the second Irish referendum - expected to be in October - is the biggest remaining hurdle.
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.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.
The EU guarantees - still under discussion - are designed to allay such fears.The EU guarantees - still under discussion - are designed to allay such fears.
The Lisbon Treaty does not affect or prejudice Ireland's traditional policy of military neutrality 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 "This is necessary if I am to call, and win, a second referendum," Mr Cowen said in a letter to UK leader Gordon Brown.
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.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.
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.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.
Sweden, which takes over the EU's rotating presidency next month, does not want any further delays over Lisbon. 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, which takes over the EU's rotating presidency next month, does not want any further delays over Lisbon.
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."
Czech PM Jan Fischer, chairing the summit, said there was a "sound basis" for an agreement with Ireland.
"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.
Financial watchdogFinancial watchdog
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 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.
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.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.
European farmers have descended on Brussels demanding fair pricesEuropean farmers have descended on Brussels demanding fair prices
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.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, the EU officials said. 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 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.
Sweden's PM Fredrik Reinfeldt said: "This is not the time to make confusions in the EU leadershipÂ… he has broad support."Sweden's PM Fredrik Reinfeldt said: "This is not the time to make confusions in the EU leadershipÂ… he has broad support."
The summit will also touch on preparations for the UN conference on climate change, coming up in December.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.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.