Sarkozy accepts there is no quick fix to Lisbon crisis

FRENCH PRESIDENT Nicolas Sarkozy has accepted that a quick solution to the crisis in the European Union caused by Ireland's rejection…

FRENCH PRESIDENT Nicolas Sarkozy has accepted that a quick solution to the crisis in the European Union caused by Ireland's rejection of the Lisbon Treaty referendum cannot be found. MARK HENNESSY& LARA MARLOWEreport

During a hectic day of meetings in Dublin, Mr Sarkozy denied he had told French MPs last week that Ireland had no choice but to hold a second referendum.

Although the Government is now keen to postpone a resolution until after the European Parliament elections next June, Mr Sarkozy proposed during private talks that a second poll should be held on the same day. Under the Sarkozy plan, which was made to Irish surprise, the strategy would be announced at the EU summit next December in Brussels.

The timetable is likely to meet with fierce resistance from other member states, particularly those who would lose MEPs if the Nice Treaty rules are used again.

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In addition, each EU state would be guaranteed a European Commissioner, while Ireland would also get declarations - which have persuasive effect, but are not legally binding - on abortion, defence and other issues concerning Irish voters.

Furthermore, Mr Sarkozy made clear during a two-hour meeting with Yes and No campaigners that he does not want common EU corporation tax rates, though some common rules to understand the rates in place would be helpful.

Despite fears the visit could turn into a diplomatic disaster, Mr Sarkozy went to considerable lengths to display empathy with Ireland. He repeatedly accepted, during separate talks with Taoiseach Brian Cowen and Yes and No campaigners, that a solution could not be found by the time the French six-month EU presidency ends in December.

He said he did not "have a miracle solution that could be produced with a wand", adding that the Irish people must give their opinion on the next steps.

Last night, the Government was confident that he left for home with "a full understanding" of the difficulties facing Taoiseach Brian Cowen. "He now understands the magnitude of the scale of the challenge," said one Irish source.

Now it appears that the Government would prefer to give only a preliminary report to other EU states when EU leaders meet in October.

Later, the French president insisted the Irish No vote has been and will be respected: "We don't want to push you into anything." The European Union is a union of 27 states, and it will find a solution to the present crisis "together as 27", he said at a joint press conference with Mr Cowen.

The Government made it clear that Mr Sarkozy was given "absolutely no timetable" by Mr Cowen, who insisted that Ireland had to reflect at its own pace. In turn, Mr Sarkozy made it clear that a treaty renegotiation is impossible, pointing out that Italy will shortly become the 24th state to ratify.

But he said a settlement of the Irish issue will be needed in time to "prepare" for next June's European Parliament elections, under the Nice or Lisbon treaties.

Speaking in French, Mr Sarkozy said the elections were "a rendezvous", which was translated as "deadline", rather than as appointment.

A decision to run the elections under the Nice Treaty - which dictates a smaller parliament than allowed by Lisbon - would mean that 50 serving MEP seats would be abolished.

The use of the Nice Treaty - if agreement could be found among EU states - would require legislation in some member states, but not Ireland, which is already to lose one seat in the next election regardless of which set of rules is used.

The Minister for Foreign Affairs, Micheál Martin, dismissed suggestions that Mr Sarkozy wanted a second referendum or was exerting political pressure on Ireland.

"I don't think he was looking for solutions by October," he said.

During short, separate but "blunt" meetings, Fine Gael leader Enda Kenny and Labour's Eamon Gilmore warned that a second referendum cannot be held before next June.

"I put it bluntly that a second referendum is being floated. A second referendum, if it were put this minute, I know it would be defeated again. There is not a great deal of point in that," said Mr Gilmore.

Demanding greater co-operation on the next steps, the Fine Gael leader told The Irish Times: "I have now spoken for longer directly with the president of France about the Lisbon Treaty than I have with the Taoiseach."

The meeting between Mr Sarkozy and Yes and No campaigners at the French embassy substantially overran, and was highly praised by the Yes side afterwards, though opponents accused Mr Sarkozy of refusing to heed the Irish voice.

Libertas founder Declan Ganley said: "The most worrying thing about this meeting is the fact that clearly the message is not properly being heard, perhaps not even being heard at all. We have said no."