EU Constitutional Convention Signs Draft

After 16 months of arduous negotiations, framers of the European Union 's first constitution finalized their draft charter Thursday but failed to settle differences over how much power national governments would cede to Brussels.

Those differences, notably in taxation, foreign policy and immigration, are to be addressed in talks among representatives of member governments that begin in October in Italy.

Former French President Valery Giscard d'Estaing, who chaired the European Convention that drafted the charter, urged EU leaders not to make substantial changes in the "fragile compromise" reached by the 105 delegates.

"The consensus reached ... far from being the lowest common denominator, represents the maximum that could be achieved," he said. "I launch an appeal to politicians in Europe: Citizens say yes to our constitution. Do not respond by saying no."

The constitution is supposed to streamline decision-making in the EU when it expands from 15 to 25 members in May. Among other things, it calls for an EU president to replace the current presidency, which rotates among the 15 members every six months.

It also calls for an EU foreign minister and expands the number of decisions that can be made by majority voting, rather than being subject to veto by individual governments.

During the Thursday meeting, the 27th and last session of the Convention, delegates added last-minute changes enshrining an official EU flag, anthem, motto, currency and official Europe Day to the constitution.

They also agreed to set up an EU diplomatic service based at EU headquarters in Brussels, to back up the new EU foreign minister.

But delegates failed to resolve the divisive issue of extending majority voting. Several governments want to retain the right to veto decisions in foreign policy, taxation and immigration.

France at the last minute won a "cultural exemption" by keeping its national veto in culture and audiovisual policy. France feared that without the veto, foreign competition would weaken the French entertainment industry, which struggles against an English-language onslaught.

Several delegates, however, criticized the final draft, saying it went too far in subjugating national sovereignty.

"Congratulations on the new superstate," said Danish lawmaker Jens Peter Bonde.

Other delegates defended the draft as good for Europe.

"This convention is a success story," said German Foreign Minister Joschka Fischer, who represented his country on the panel. Fischer said the constitution was "a historic compromise that will make the European Union of 25 able to function and more transparent. That will move European democracy forward."

During the October talks, several countries, including Belgium and the Netherlands, are likely to keep pushing for majority voting in foreign policy. Austria and Luxembourg oppose a EU president, fearing small countries will end up sidelined.

British Prime Minister Tony Blair warned he would block any transfer of "sovereign rights" to the EU in areas like foreign policy, taxation or immigration.

Opponents of the veto say it leads to paralysis in decision-making, especially once the EU expands.

If approved, the constitution would mark the biggest single overhaul of the EU in its 46-year history.

Among other things, the constitution provides for a bill of rights guaranteeing freedom of speech and religion as well as rights to life, shelter, education, collective labor bargaining and fair working conditions.

Officials said during the 16 months, some 6,000 amendments were submitted by delegates including 1,700 just before the final session.

After EU leaders approve the constitution, it must be ratified by legislatures of all member states and by the European Parliament. The goal is for the constitution to take effect by the end of 2005.