Schroeder and Chirac want EU charter process to go on

BERLIN - German Chancellor Gerhard Schroeder and French President Jacques Chirac want other European Union countries to press on with ratifying the bloc's constitution, despite its rejection by French and Dutch voters.

The two leaders met in Berlin on Saturday to discuss their position ahead of an EU summit this month following the rejection of the constitution in separate referendums in France and Netherlands over the past week.

"The Chancellor and President Chirac were in agreement that the constitutional process must continue so that the views of each country are respected," German government spokesman Bela Anda told reporters after the two leaders met for dinner.

The hastily arranged meeting between the two, who have both suffered stinging rebuffs from voters in recent weeks, underlined the uncertainty surrounding the constitution in the wake of the referendum defeats.

French voters who felt the charter imposed "ultra liberal" economic values and worried about losing jobs and Dutch voters wary about losing influence in an expanded bloc, have sparked a bout of soul-searching among European leaders over how to reconnect with an increasingly disillusioned public.

The issue is set to dominate an EU summit meeting in Brussels on June 16-17.

In Italy, European Commission President Jose Manuel Barroso urged the EU to "turn a crisis into an opportunity" and avoid a split over free market capitalism and the welfare state.

An important indication about further ratification could come on Monday, when the British government may signal whether it will delay a planned referendum on the constitution.

The constitution issue has come as EU leaders are searching for an agreement over the next mid-term budget for the bloc for the 2007-2013, which has been held up by the refusal of major contributors, including Germany, to increase their payments.

The problems over the two issues have raised big question marks over how the enlarged EU will be capable of functioning in coming years.

Anda reiterated comments from Schroeder that Germany was prepared to be flexible to reach a deal over the budget and said that other countries had to act as well.

"Germany is ready to move on the budget and that will be said at the summit," he said but gave no details.

Schroeder has softened his previous demand for a cut in German contributions but a deal remains uncertain, with several contentious issues, including a special budget rebate for Britain and farm subsidies that benefit France, unresolved.

French government spokesman Jerome Bonnafont said that Chirac agreed that all sides had to "make a gesture" but he said that an agreement on farm subsidies was not in question.

With the future of the constitution now unclear, the two leaders were keen to establish a joint position and underline the importance of the Franco-German alliance ahead of the summit which could decide if ratification of the charter will continue.

"The meeting demonstrated a profound unity of views on what has happened in Europe and what must happen going forward," Bonnafont said.

He gave no concrete details but said the two leaders would meet again in Paris on June 10 as part of their regular series of informal meetings and would continue the discussion.

Ten EU countries, accounting for about half the bloc's population, have now approved the charter but the rejections from two of the Union's founder members have triggered doubts about whether the charter is still viable.

- REUTERS