washingtonpost.com France rejects EU treaty, Europe faces crisis By Timothy Heritage Reuters Sunday, May 29, 2005; 5:32 PM
PARIS (Reuters) - France overwhelmingly rejected the European Union's constitution in a referendum on Sunday, plunging the EU into crisis and dealing a potentially fatal blow to a charter designed to make the enlarged bloc run smoothly.
President Jacques Chirac swiftly conceded defeat in an address to the nation as the "No" camp celebrated projections by polling groups showing about 55 percent of voters opposed the EU's first constitution.
Chirac, 72, said the defeat, which EU leaders fear could stall European integration, weakened France in the 25-member bloc but the gradual process of ratification by member states would continue and France would remain in the Union.
He promised a fresh impetus for the government, signaling he was ready to dismiss unpopular Prime Minister Jean-Pierre Raffarin.
"France has expressed itself democratically. You have rejected the European constitution by a majority. It is your sovereign decision and I take note of it," he said.
"Nevertheless, our ambitions and interests are profoundly linked to Europe. France, a founder member of the union, remains, naturally, within the union.
He ignored calls by some members of the "No" camp to step down but is clearly badly wounded two years before presidential and parliamentary elections.
The euro fell just over half a cent in early trading in Asia to 1.2516/19, down from 1.2573 in New York on Friday.
Such a heavy defeat in a country that has been one of the main pillars of the EU reduces the chances of a repeat vote, which French leaders had ruled out anyway before the referendum.
"The constitution no longer exists" said leading euroskeptic Philippe de Villiers, who demanded Chirac quit or dissolve parliament.
Center-right leader Nicolas Sarkozy demanded policy changes.
PUNISHING CHIRAC AND THE GOVERNMENT
Many voters wanted to punish Chirac and his conservative government over unemployment that is at a 5-year high of 10.2 percent and other economic problems. Other critics were angry at what they see as France's declining role in the Union, especially with the expansion to 25 members last year.
"This is a sad, sad day for France, and a sad day for Europe too. But rumors of the constitution's demise have been greatly exaggerated," said Poul Nyrup Rasmussen, former Danish Prime Minister and president of the Party of European Socialists,
"We must not read the "non' in France as a "non' to Europe. This is not the last word on the European constitution. The French people wished to reject a tired and unpopular government that has failed to represent the concerns of ordinary people."
If the constitution does not survive, the EU will continue to operate under its current rules. But the system is widely seen as unworkable for a Union intent on enlarging further, and decision-making could soon become paralyzed.
The constitution was signed by EU leaders last October in Rome after long and tough negotiations and requires the approval of all member states to go into force.
Nine countries have approved the treaty, including Germany which alongside France drove creation of the post-World War II economic alliance that developed into the European Union.
EU officials said before the vote the treaty could be doomed if a large majority of voters in France rejected it and Dutch voters threw it out in a vote on Wednesday. Dutch ministers urged voters on Sunday to ignore the result in France.
EU leaders are expected to urge other member states to continue the ratification process.
French leaders have repeatedly ruled out a repeat vote and dismissed suggestions it could be renegotiated, although they say it would help make Europe and France stronger in the face of economic threats from other countries such as China.
Opponents want the EU to redraft the treaty and improve it. They say the charter enshrines economic policies that have failed to stop the loss of jobs to low-wage economies, including countries outside the EU.
Concerns over the constitution's fate have contributed to the euro's recent weakness and economists said before the vote that the currency could fall further in the event of a "No."
The impact of the French rejection could also be felt on the Turkish lira because it could be interpreted as a protest against Turkey's efforts to join the Union. © 2005 Reuters