UK threatens to spoil EU deal on 'mini constitution'

Tony Blair has threatened to scupper agreement on a new "mini-treaty" for the European Union at this week's summit of EU leaders unless they agree to limit its scope in four key areas.

The Prime Minister talked tough ahead of the meeting in Brussels amid signs that Britain, Poland or the Netherlands could emerge as the stumbling block to a deal. Leaders of the 27-nation bloc will discuss a scaled-down version of the EU constitution rejected by France and the Netherlands in referendums in two years ago.

With at least the three countries seeking concessions, there was little sign of a breakthrough when EU foreign ministers met in Luxembourg yesterday. EU officials said the summit, which starts on Thursday, would go "up to the wire" and could run on beyond its scheduled finish on Friday.

Frank-Walter Steinmeier, the Foreign Minister of Germany, which holds the EU's rotating presidency, warned yesterday: "If there is no compromise, no agreement, everyone will have lost. We need this for the future of Europe."

Mr Blair told MPs of the Liaison Committee that he would not cross four "red lines". He said: "If people want an agreement this week we've got to go back to a conventional amending treaty. Europe needs to work more effectively. What is does not need is a constitutional treaty or a treaty with the characteristics of a constitution."

Britain would not allow a proposed Charter of Fundamental Rights, which enshrines the right to strike, to change UK law in any way; would not accept a treaty that displaced the role of Britain's foreign policy and foreign minister or took away Britain's ability to control its common law and judicial and police system and would not move to qualified majority voting on tax and benefits.

"That is the position we will set out and if people want an agreement I'm afraid we are going to have to agree on that," he said. He added that there would be no need for a referendum if these demands were met.

Critics accused Mr Blair of putting up a smokescreen. "These are not so much red lines as red herrings," said Mark Francois, the Tory spokesman on Europe. "He said nothing about a new EU president or giving the EU the right to sign treaties. Nor did he make clear his views on the crucial details in other areas that could see major transfers of power to the EU."

Poland refused to drop its threat to veto the redrafted constitution if changes are not made to the proposed voting system in the Council of Ministers, the EU's main decision-making body. "Poland will not accept the treaty's voting provisions," said Anna Fotyga, its Foreign Minister. But she added that her country was "willing to talk." France and Spain put forward a joint paper including a call for the EU to have a "single legal personality" and a legally binding Charter of Fundamental Rights - both opposed by Britain. They also called for more majority voting in no fewer than 51 areas, including in criminal law and foreign policy.

Today Mr Blair and Gordon Brown, who will succeed him as Prime Minister a week tomorrow, will discuss the summit in a telephone conference with Nicolas Sarkozy, the new French President.

Despite the French "no" vote two years ago, France is not one of the stumbling blocks to agreement on the proposed "cut down" or "simplified" treaty. The issues which threaten to de-rail this week's summit - voting rules and the charter of fundamental rights - were barely discussed during the French referendum. French popular fears concentrated mostly on economic and trade policy, part of the draft treaty which has now been set aside.

Officials in Paris say M. Sarkozy would be prepared to allow Britain to "opt out" of the rights charter. Other governments are less flexible. France is less convinced that Britain should have an "opt out" in other areas, such as majority voting on justice and home affairs.

President Sarkozy, anxious to make an immediate impact in Europe, has joined forces with Angela Merkel, the German Chancellor, in the search for a settlement. In the past week, he has been touring European capitals to push a "mini" or "simplified" treaty, which he claims was his idea. In fact, the principle of replacing the blocked draft constitution with a simpler document, had already been suggested by Britain and other governments.

Who wants what?

* BRITAIN

Wants Charter of Fundamental Rights to be dropped from proposal. Wants opt-out from plans to curb member countries' veto powers in policing, tax and foreign policy areas. But will accept a full-time EU president and 'foreign' minister. Blair rules out referendum; Brown wants to keep the option

* FRANCE

Wants to maintain new voting rules opposed by Poland. Unlike Britain, wants vetoes dropped in 51 policy areas, including policing and foreign policy. Nicolas Sarkozy, far right, go along with charter of fundamental rights. Intends to ratify agreed treaty by parliamentary vote after French referendum rejected EU draft constitution in 2005

* POLAND

Threatening to veto entire deal to salvage Warsaw's voting rights. Poland fears changes to current system under which it has almost as much weight as more populous Germany

* GERMANY

Angela Merkel wants EU members to end two-year deadlock on draft constitution and agree on principles of slimmed-down treaty which will be put to an intergovernmental conference and then to member states for ratification next year

* POSSIBLE COMPROMISE

Postponing the new voting system until 2014 - after the seven-year budget is negotiated. The name 'constitution' already dropped. Also ditched, EU anthem, flag and other symbols of statehood.