French and British leaders yesterday made what they called a landmark and historic agreement to develop a European defence system capable of functioning independently from NATO.
The one-page declaration by President Jacques Chirac, the French Prime Minister, Mr Lionel Jospin, and the British Prime Minister, Mr Tony Blair, did not mention the word "neutrality" but alluded to the need to "take into account the various positions of European states" and said the "different situations of countries in relation to NATO must be respected."
In the long term, the existence of an EU defence policy and military force could involve the EU's four neutral states - Ireland, Sweden, Finland and Austria - in an alliance holding nuclear weapons.
"The position of the neutral states has obviously got to be resolved by then," Mr Blair said in response to a question from The Irish Times. "They are independent and sovereign states. These are decisions that in the end we cannot take for other countries.
"Clearly, I hope very much that as European defence proceeds we will draw closer together."
The EU, the document says, "must have the capacity for autonomous action, backed up by credible military forces, the means to decide to use them, and a readiness to do so, in order to respond to international crises."
The Franco-British declaration called on the European Council (EU heads of state) "to decide on the progressive framing of a common defence policy in the framework of CFSP".
The French feel vindicated by yesterday's agreement because Paris has been the main advocate of the Common Foreign and Security Policy and because France has also pushed for a "European pillar" of NATO.
For Mr Blair, who unexpectedly launched this initiative, it was a question of proving Britain's European credentials despite its absence from EMU.
"Britain is indeed forging a new relationship in Europe," he said. "That is good for Britain and it is good for Europe too. I have no doubt at all that is where the future interests of my country lie."
The agreement dodged the question of the role of the Western European Union, the inactive defence arm of the EU. France wants to strengthen the WEU, but Britain would prefer to scrap it.
The EU "must be given the appropriate structures and a capacity for analysis of situations, sources of intelligence, and a capability for relevant strategic planning," it says, "taking account of the existing assets of the WEU and the evolution of its relations with the EU."
The French and British leaders seem to have overcome the obstacle that thwarted defence integration in the past: namely, relations with NATO. It was a historic agreement, Mr Blair said, "fully in conformity with our arrangements and obligations under NATO and the strong relations that we have with the United States of America.
"The two can live together. It is important that we have the capability and the political leadership in Europe to handle responsibilities, especially in circumstances where the US does not wish to be engaged."
The Saint-Malo summit was to some extent hijacked by British journalists who were determined to prolong the debate over European fiscal policies sparked off by the German Finance Minister, Mr Oskar Lafontaine, at the beginning of the week.
Mr Alistair Campbell, Mr Blair's spokesman, said French leaders had been "baffled" by the "hysteria" of the British news papers.
At a joint press conference Mr Jospin sought to reassure the British. "Neither France nor Britain give any thought to unifying taxes," he explained. "What we are talking about is reducing the number of tax havens. We want to avoid tax dumping and practices that represent unfair competition . . . But there is no question of uniform taxation." Alison Little, Chief Political Correspondent, PA News, reports: -
The British government said there was new hope of a reprieve for duty-free sales in Europe after agreeing with France that plans to scrap the concessions should be reviewed.
British ministers at the Anglo-French summit in Saint-Malo said they did not underestimate the difficulty of getting every EU member state to agree to postpone the proposed abolition, due to take place on June 30th next.