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Europe in crisis after Dutch, French reject treaty
(Agencies)
Updated: 2005-06-02 07:42
The European Union was in disarray on Thursday after the Netherlands followed
France in resoundingly rejecting the bloc's new constitution, possibly stalling
future expansion and disrupting decision making.
The rejection of the charter by two of the six countries that founded the
bloc in the 1950s could deal a fatal blow to a treaty designed to make the EU
run more smoothly following its enlargement from 15 to 25 states last year.
The votes also cast doubt on the EU's hopes for a stronger foreign policy and
its plans to expand further to the western Balkans, Turkey and Ukraine, and
raised questions about its appetite for economic reform amid mounting global
competition.
The Dutch "No" vote of 61.6 percent was even more decisive than the nearly 55
percent scored by French opponents of the treaty. Turnout was also a strong 62.8
percent, well above the 39 percent in last year's European parliament election.
EU leaders urged member states to press on and ratify the constitution, but
analysts said they should admit the document is dead. EU leaders are due to
decide how to proceed when they meet for a regular summit on June 16-17.
"To have such a very, very large turnout after the French vote but also to
have such an overwhelming "No" is really crushing for the constitutional
treaty," said Richard Whitman from the Royal Institute of International Affairs
in London.
Dutch Prime Minister Jan Peter Balkenende, who was criticized for a
lacklustre "Yes" campaign, could face a parliamentary vote of confidence on
Thursday but it has little chance of success. Balkenende has said he would not
quit.
Latvia's parliament is expected to approve the treaty with a big majority on
Thursday, meaning 10 members representing almost half the EU's 454 million
citizens will have approved it.
European Commission President Jose Manuel Barroso called on member states to
proceed with ratification and not preempt their summit meeting with "unilateral
decisions" before then.
UNCERTAIN FUTURE
Britain faces a decision next week on whether to suspend or go ahead with
legislation to pave the way for a referendum.
Poland said on Wednesday it would decide how and when to ratify the
constitution after the EU summit. It had planned a referendum in October, but
the opposition has demanded a delay.
The Czech Republic said on Wednesday it would seek an extension of the
November 2006 deadline for ratification to give countries that vote "No" more
time to reconsider.
Luxembourg Prime Minister Jean-Claude Juncker voiced concerns on Wednesday
about the July 10 referendum on the treaty in his broadly pro-Europe state after
the Dutch "No."
"I myself and others must plead the European cause with lots of vigor," he
told reporters in Brussels.
Juncker, whose country holds the EU presidency, also said the Dutch and
French rejections do not alter the economic fundamentals underpinning the euro,
despite the single currency touching a new eight-month low after the Dutch
result.
The euro has fallen by nearly 10 percent from its level in mid-March, when
markets began factoring in the possibility of national rejections of the treaty.
Former European Central Bank chief Wim Duisenberg agreed with Juncker that
the euro should not suffer lasting damage, but said the votes would be a blow to
economic reforms in the bloc.
"The political uncertainty created will hamper the efforts in Europe to
introduce more structural reforms which are so very, very necessary," Duisenberg
told CNN television. "It will take us a couple of years at least to reassemble
ourselves."
The result is also likely to make it harder for EU leaders to reach a deal on
the long-term EU budget, already difficult because of a looming early German
election.
Dutch Finance Minister Gerrit Zalm signaled the Netherlands would toughen its
demands for a cap to the EU budget after the "No" vote and push for a cut to the
Netherlands' per capita contribution, which is the highest of all 25 member
states.
The votes could cast doubt on the EU's plans to expand further. Romania and
Bulgaria are likely to join in 2007 as their accession treaties have already
been signed but membership bids by Turkey, Ukraine and Balkan hopefuls might be
disrupted.
"Enlargement is going to be one of the big casualties of this decision," said
Mendeltje van Keulen, analyst at the Clingendael Institute near The Hague.
"Romania and Bulgaria have probably just got in time ... but for Croatia or
Turkey it's a different story."
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