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          "No" vote throws France, EU into turmoil
          (Agencies)
          Updated: 2005-05-31 00:18

          A change of government loomed in France yesterday after Europe broke down politically following a rejection of the EU constitution by the French.

          French President Jacques Chirac addresses the nation on television after France voted against the ratification of the European constitution May 29, 2005. With almost 80% of the votes counted, France rejected the treaty by 57% of voters. [Reuters]
          The 55 per cent "No" vote marks a historic turning point in France's political landscape, and exposed deep divisions in the country.

          In Brussels, the EU capital, shell-shocked officials insisted the treaty was not dead in the water, but feared a possible death blow to the charter tomorrow, when the Dutch are expected to reject the treaty in a nonbinding referendum.

          France became the first country to turn down the landmark charter, dealing a slap in the face to President Jacques Chirac and a potentially fatal setback to the continent's ambitious plans for political union.

          After a brief meeting with Chirac early yesterday, Prime Minister Jean-Pierre Raffarin said there would be "developments" soon, amid widespread speculation that the premier would soon resign.

          Raffarin and de Villepin

          Chirac was due to receive Interior Minister Dominique de Villepin, tipped by insiders as Raffarin's possible successor, late yesterday.

          The fallout from Sunday's vote will be felt far and wide, and take time to assess properly.

          British Prime Minister Tony Blair hinted that a referendum planned in his country for next year might not take place at all.

          Struggling with morning-after blues, French government minis-ters were at a loss to extract even the slightest grain of comfort from the debacle--admitting that Paris now risks losing its pre-eminent position inside the expanded 25-member bloc.

          "This is the first time in 50 years that the French and Germans have diverged in Europe on a fundamental issue. Without this constitution, Europe is broken down politically," said Foreign Minister Michel Barnier.

          "While I respect the choice of those who voted no, I do not understand how we can have deprived ourselves of the instruments and the rights which are in the constitution," Barnier said.

          Final results from the interior ministry put the "no" vote at 54.87 percent. That result had been predicted, but the wide margin--45.13 per cent voted "yes"--deepened a sense of crisis across the EU.

          Bucking the national trend, 66 per cent of voters in the capital Paris approved the treaty. The "oui" also prevailed in Lyon and Strasbourg, reflecting the deep divisions between France's cities and small towns.

          The result was a crushing blow to Chirac, who put his authority on the line with multiple appeals for a "yes" vote, warning that rejection would diminish France's influence in Europe and do nothing to safeguard its social model.

          Instead the public was swayed by fears that the treaty would destroy the country's generous welfare system, leach new powers to Brussels and shift jobs to low-cost economies of eastern Europe.

          Chirac -- attempting to regain some political momentum, was expected to change his government -- with Raffarin likely to be replaced by Villepin, according to insiders.

          Inside the EU the rejection opened up a period of deep political uncertainty, as the constitu-tion needs to be ratified by all 25 members. EU leaders were due to meet in two weeks at a mid-June summit.

          "There is a very serious problem and we can't really say it's 'business as usual'," said European Commission chief Jose Manuel Barroso.

          Britain will assume the tough task of guiding the EU through the current crisis when it takes over the EU presidency on July 1.

          By creating the posts of EU president and foreign minister and streamlining the process of decision-making in an enlarged bloc, the treaty is intended to build European muscle at a time of intensifying global competition.

          So far nine countries have approved the constitution, and the rest aim to continue the procedure up to a deadline of October 2006.



           
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