EU agrees mini-treaty as Brown calls on Blair to stiffen his resolve
By Andrew Grice and John Lichfield in Brussels
Published: 23 June 2007

European Union leaders agreed an outline deal on a new mini-treaty early today after Poland dropped its opposition to a new voting system.
At his last summit, Tony Blair helped to broker an agreement between Poland and the 26 other EU members. But earlier the Prime Minister was forced to stiffen his own negotiating position after his successor, Gordon Brown, intervened directly in a row between Britain and France over the EU's economic policies.
At a heated summit in Brussels, EU leaders eventually settled their differences over the rules under which the club operates. The main stumbling block was Poland's attempt to boost its voting power in the Council of Ministers, the EU's main decision-making body.
In a dramatic move, Germany, which holds the EU's rotating presidency, threatened to press ahead without Poland. The tactic worked as the Poles accepted a compromise under which their voting strength will be reduced in 2017 after a three-year transitional period.
Mr Blair and Nicolas Sarkozy, the French President, were closely involved in persuading the Poles not to scupper the summit.
As it drew to a close, Mr Blair claimed victory early today after winning amendments to a draft treaty drawn up by Germany ­ including opt-outs for Britain from the EU's Charter of Fundamental Rights and co-operation on criminal justice matters. His official spokesman said a referendum on the treaty would not be needed because the Prime Minister had secured all his objectives.
An already difficult summit was made even more problematic for Mr Blair when he received a mid-afternoon telephone call from Mr Brown, who was monitoring the talks from London. The Chancellor was concerned when details emerged of a trade-off between Mr Blair and M Sarkozy, who secured the removal of the EU's 50-year commitment to "free and undistorted" competition from a list of values in the "mini-treaty". That could have weakened the EU's internal market and attempts by Brussels to stamp out protectionist measures, illegal state aid and cartels.
In an unusual move, Mr Brown made clear his unhappiness to Mr Blair after being briefed on the negotiations by Jon Cunliffe, the Treasury's second permanent secretary, who was part of the British negotiating team at the summit. Mr Cunliffe will become Mr Brown's European adviser next week.
At lunchtime, Mr Blair was happy with his deal with the French President and his spokesman said French "sensitivities" could be addressed. But Mr Brown's intervention forced him to return to the negotiating table. A legally binding protocol stressing the EU's belief in competition was then added to the "mini-treaty" after talks involving Mr Blair, M Sarkozy and José Manuel Barroso, the European Commission president.
Commission sources gave a different version of events, saying Mr Barroso was unhappy with M Sarkozy's proposal and was seeking changes before Mr Brown's involvement.
Last night Mr Blair side-stepped questions on whether the Chancellor was happy with the deal. He admitted he would have preferred the commitment to free competition to remain in the new treaty, but said he had to negotiate to safeguard Britain's four "red lines".
"I am afraid that is what happens when you are in a negotiation," he said. "You can't have it both ways." But he insisted guarantees of a free market in the EU's founding Treaty of Rome will be unaffected.
Mr Blair's other two no-go areas were maintaining the veto on social security and tax matters and limiting the role of the EU's new foreign affairs chief. He will be called the High Representative rather than the Foreign minister, as proposed in the constitution rejected in referendums in France and the Netherlands.
M Sarkozy will return to Paris with either a meaningless, cosmetic change in the language of the EU treaty or a radical shift away from Europe's commitment to free competition and trade, depending on your viewpoint.