French and German leaders push on despite 'no' votes

BRUSSELS - A fierce diplomatic battle has emerged from the ashes of the two European Union referendum "no" votes, with leaders wrangling over whether to continue with the ratification process or to freeze it.

Yesterday the leaders of France and Germany committed themselves to pressing ahead with the planned EU constitution ratification process despite its rejection by French and Dutch voters.

The confirmation of their position came after a hastily arranged Berlin meeting between German Chancellor Gerhard Schroeder and the French President, Jacques Chirac, ahead of an EU summit this month.

"The Chancellor and President Chirac were in agreement that the constitutional process must continue so that the views of each country are respected," said a German Government spokesman.

Jose Manuel Barroso, the European Commission President, has appealed to leaders to avert an "ideological rift".

What was needed, Barroso said, was "an intelligent synthesis between the market and the state, which can help Europe win and not lose in the face of globalisation".

But the row over ratification was expected to be given a further boost today with the British Foreign Secretary, Jack Straw, expected to announce that Britain was shelving its referendum plans.

Officials in Brussels believe that the stand-off bodes ill for the EU leaders' summit on June 16.

An Italian minister, Roberto Maroni, has added to the sense of alarm saying Italy should consider returning to the lira.

- INDEPENDENT