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France, Germany in EU crisis talks


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Chirac, right, and Schroeder will discuss the next steps for the EU.
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BERLIN, Germany -- The leaders of France and Germany were set to hold crisis talks following the twin French and Dutch rejections of the proposed European Union constitution.

French President Jacques Chirac travels to Berlin Saturday to meet with German Chancellor Gerhard Schroeder and discuss the next steps for the EU.

On Friday, Luxembourg's prime minister threatened to resign if his country rejects the charter in a referendum next month.

Jean-Claude Juncker, whose nation currently holds the presidency of the 25-member bloc, said it would be impossible "to defend Luxembourg's interests in Europe" if the constitution was defeated.

Luxembourg, with a population of about 400,000, has long been an ardent supporter of European integration. However, recent polls show the July 10 vote will be close.

The new EU charter must be approved by all 25 EU members -- either by referendum or parliament -- to become effective in October 2006.

So far, 10 nations have approved it, but France and the Netherlands said "No" in referendums this past week, calling the constitution's future into question.

Juncker's comments echoed those of Schroeder -- whom he met Thursday -- that the charter's ratification process must run its course. (Full story)

"Ratification must continue. We must decide what to do at the end of that process," Schroeder told reporters.

"Every form of overreaction at this stage is wrong."

Meanwhile, Latvian lawmakers overwhelmingly approved the constitution Thursday. (Full story)

Also Thursday, Chirac -- in a bid to win back voters' confidence after the stinging EU rebuke -- unveiled a slimmed-down government to be led by new Prime Minister Dominique de Villepin.

Foreign Minister Michel Barnier became another casualty of France's referendum. He is being replaced by former health minister Philippe Douste-Blazy, a novice in international affairs. (Full story)

Britain, which takes over the rotating EU presidency in July, is expected to shelve its own referendum plans.

Foreign Secretary Jack Straw will make the announcement Monday in parliament, according to CNN European Political Editor Robin Oakley.

Straw's announcement will be a strong hint that the government expects EU leaders will scrap the constitution at their June 16-17 summit, Oakley said.

The negative votes in the Netherlands and France were largely the result of poor economies and concerns about immigration, EU expansion and the loss of national identity, Oakley said.

Unemployment in the Netherlands has risen from 3.3 percent to 6.7 percent over the last three years, he said.


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