EU leaders clash at Nice summit

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By Robin Oakley, CNN.com European Political Editor

NICE, France (CNN) -- European Union leaders meeting in Nice are locked in bitter argument over how to streamline EU institutions to cope with the enlargement of the bloc.

There is no sign of any early breakthrough in what has become a key power struggle between competing nation states and tempers are fraying.

French President Jacques Chirac, current holder of the rotating EU presidency and the man under pressure to produce a result in Nice, has given his fellow leaders a document setting out possible ways forward on the contentious issues.

REFERENCE   •  Summit preview   •  Main sticking point   •  Chirac's salvation?   •  On the agenda   •  What do they want?   •  Votes vs. population   •  Jargon glossary   •  EU enlargement map   •  History of EU growth   •  What kind of Europe?   •  France's EU presidency   •  In-depth: Changing face of Europe   •  Message board

But many delegations are objecting to key items within it and few expect a deal before Sunday at the earliest.

The leaders are agreed that if an enlarged EU is to be able to function, they have to slim the EU’s executive, the European Commission, which currently has 20 members, and also re-weight national votes on the decision-making Council of Ministers in order that they better reflect the size of their populations

They also recognise the need to curb the number of EU decisions subject to veto by individual countries in favour of more “qualified majority voting” (QMV)

But with no decisions on any of these matters agreed, some feverish negotiating has to be done.

On the European Commission, the French Presidency document proposes that from 2005 it should consist of one commissioner from each member state -- which could be up to 21 by then.

From 2010, or when the Union reaches 27 states, the Commission would drop to 20 members, with member states rotating equally.

On the weighting of national votes, the French have set out a table which ignores a call from Germany for extra votes to reflect its 20 million larger population.

The table also ignores the demand from the Netherlands (population 15 million) to have more votes than Belgium (population 10 million) and from Spain to have parity with the big four (France, Germany, Italy and the UK).

In a clear bid to win round the Germans to a compromise, the French document proposes a significant increase in the number of German members in the European Parliament.

On the issues of Qualified Majority Voting the complicated document perseveres with a call for QMV to be extended to taxation matters, although that is opposed by the UK, Ireland and Denmark.

VIDEO CNN's Patricia Kelly explains why the French chose to concede Play video (QuickTime, Real or Windows Media)     AUDIO The French are prepared to go into overtime 238kb/43 sec.. AIFF or WAV sound

It also urges a move to QMV on regional funding issues by 2007 -- but that is opposed by Spain and others.

There is no provision in the French document for the further Inter Governmental Conference in 2004 to make more changes in the EU constitution which is being sought by the Germans.

The strains of the negotiation are beginning to show with accusations from some other delegations that the French Presidency is proving to be “more French than Presidency” (that President Chirac is being less than judicial).

Chirac himself has been involved in a spat with Romano Prodi, the European Commission President, whom he called “a little bureaucrat” after Prodi insisted on access for one of his officials to bring him papers.

Normally the bilateral negotiating sessions with individual EU leaders are conducted jointly by the nation holding the Presidency and by the Commission President.

On this occasion Chirac acted alone and Prodi retaliated by having his own separate meetings.

The UK is opposing QMV on taxation, social security, defence, border controls, EU finance and treaty amendments.

Germany and France are against extending QMV into immigration matters and France is determined to protect its rights on international trade with a veto.

Spain does not want to cede the national veto on regional funding nor the Greeks on transport affairs which could affect the country’s ferry businesses.

Robin Cook, the British Foreign Secretary, reiterated on Saturday morning that Britain would stick by its refusal to abandon the national veto on taxation matters. Saying that Britain’s position had been clear for nine months, he added: “We are not bluffing.”

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