Arms sales likely to overshadow EU summit
Arms sales likely to overshadow EU summit
MAR. 22 8:56 A.M. ET Growing fears of a French 'no' vote on the European Union constitution and concerns about resuming arms sales to China appeared likely to overshadow Tuesday's EU summit aimed at boosting jobs and growth.
The 25 EU leaders were expect to endorse plans to streamline economic reforms to cut red tape and boost investment and employment to increase the bloc's competitiveness during their two-day talks.
EU leaders also were to approve a revision of the Stability and Growth Pact, which underpins the euro currency, allowing governments to spend their way out of a downturn -- a decision the European Central Bank has criticized.
Luxembourg Prime Minister Jean-Claude Juncker, the summit chairman, was optimistic the economic reforms would get Europe's economy back on track.
He said success of previous reforms has only been partial. "Hence there is a need to renew ... to refocus on jobs and growth," he said after pre-summit talks with union and business leaders.
Unions, however, warned that EU leaders should not put efforts to cut red tape and pension reforms ahead of workers rights.
"We believe that its a mistake to suggest that somehow social policy needs to be relegated a bit and competitiveness needs to be put up the priority list," said John Monks, general secretary of the European Trade Union Confederation.
Diplomats said the EU's 15-year-old arms embargo against China could become an issue at the economic summit talks.
Concerns were raised last week after China passed a new law threatening to use military force against Taiwan if the island declares independence. British Foreign Secretary Jack Straw said China's threats have complicated the EU's position, and diplomats hint the entire process could be delayed.
Germany and France have pushed hard for the EU to lift the embargo to give Beijing a political signal of EU recognition of its growing economic and political importance.
The United States also bars arms sales to China. Both embargoes were imposed following Beijing's bloody 1989 crackdown on pro-democracy demonstrators in Tiananmen Square.
Diplomats in Brussels, including EU Foreign Policy Chief Javier Solana, acknowledged Beijing's threats have added complexity.
U.S. Secretary of State Condoleezza Rice added pressure before the summit, telling EU nations they "should do nothing" that alters the military balance of power in Asia through the sale of sophisticated weapons.
Another issue -- the ratification of the EU's new constitution, which faces a key test in France's May 29 referendum -- was likely to feature in talks after a second new opinion poll suggested a majority of French voters were against the charter.
The EU constitution, signed by EU leaders in October, is meant to streamline the bloc's decision-making process and boost its role on the world stage.
In France, the constitution has been linked to an EU proposal to reform the service sectors from construction to health care, which unions say will undermine Europe's welfare state.
French President Jacques Chirac was to raise the issue at the summit.
An opinion poll suggests that most French voters would reject the EU constitution if a referendum were held today.
Such a rejection would be a huge political setback for the 25-nation bloc. All 25 must approve the constitution for it to come into effect.
The summit, however, is meant to focus on creating jobs and growth to re-ignite the EU's flagging economy.
EU leaders are expected to acknowledge that the bloc's listless economic performance had derailed its plans, launched in Lisbon five years ago, to become the world's most dynamic economy by 2010. The leaders instead endorse scaling down goals.
A draft of the summit statement calls for "urgent action," and adds that it is "essential to ... refocus priorities on growth and employment" to create "an attractive area in which to invest and work."
Copyright 2005, by The Associated Press.
http://www.businessweek.com/ap/financialnews/D89028980.htm?campaign_id=apn_home_down
MAR. 22 8:56 A.M. ET Growing fears of a French 'no' vote on the European Union constitution and concerns about resuming arms sales to China appeared likely to overshadow Tuesday's EU summit aimed at boosting jobs and growth.
The 25 EU leaders were expect to endorse plans to streamline economic reforms to cut red tape and boost investment and employment to increase the bloc's competitiveness during their two-day talks.
EU leaders also were to approve a revision of the Stability and Growth Pact, which underpins the euro currency, allowing governments to spend their way out of a downturn -- a decision the European Central Bank has criticized.
Luxembourg Prime Minister Jean-Claude Juncker, the summit chairman, was optimistic the economic reforms would get Europe's economy back on track.
He said success of previous reforms has only been partial. "Hence there is a need to renew ... to refocus on jobs and growth," he said after pre-summit talks with union and business leaders.
Unions, however, warned that EU leaders should not put efforts to cut red tape and pension reforms ahead of workers rights.
"We believe that its a mistake to suggest that somehow social policy needs to be relegated a bit and competitiveness needs to be put up the priority list," said John Monks, general secretary of the European Trade Union Confederation.
Diplomats said the EU's 15-year-old arms embargo against China could become an issue at the economic summit talks.
Concerns were raised last week after China passed a new law threatening to use military force against Taiwan if the island declares independence. British Foreign Secretary Jack Straw said China's threats have complicated the EU's position, and diplomats hint the entire process could be delayed.
Germany and France have pushed hard for the EU to lift the embargo to give Beijing a political signal of EU recognition of its growing economic and political importance.
The United States also bars arms sales to China. Both embargoes were imposed following Beijing's bloody 1989 crackdown on pro-democracy demonstrators in Tiananmen Square.
Diplomats in Brussels, including EU Foreign Policy Chief Javier Solana, acknowledged Beijing's threats have added complexity.
U.S. Secretary of State Condoleezza Rice added pressure before the summit, telling EU nations they "should do nothing" that alters the military balance of power in Asia through the sale of sophisticated weapons.
Another issue -- the ratification of the EU's new constitution, which faces a key test in France's May 29 referendum -- was likely to feature in talks after a second new opinion poll suggested a majority of French voters were against the charter.
The EU constitution, signed by EU leaders in October, is meant to streamline the bloc's decision-making process and boost its role on the world stage.
In France, the constitution has been linked to an EU proposal to reform the service sectors from construction to health care, which unions say will undermine Europe's welfare state.
French President Jacques Chirac was to raise the issue at the summit.
An opinion poll suggests that most French voters would reject the EU constitution if a referendum were held today.
Such a rejection would be a huge political setback for the 25-nation bloc. All 25 must approve the constitution for it to come into effect.
The summit, however, is meant to focus on creating jobs and growth to re-ignite the EU's flagging economy.
EU leaders are expected to acknowledge that the bloc's listless economic performance had derailed its plans, launched in Lisbon five years ago, to become the world's most dynamic economy by 2010. The leaders instead endorse scaling down goals.
A draft of the summit statement calls for "urgent action," and adds that it is "essential to ... refocus priorities on growth and employment" to create "an attractive area in which to invest and work."
Copyright 2005, by The Associated Press.
http://www.businessweek.com/ap/financialnews/D89028980.htm?campaign_id=apn_home_down
posted by JimG at 10:36 AM
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