Three key EU leaders divided on Iraq's future

The leaders of France, Britain and Germany were unable to conceal their differences over Iraq at a mini-summit in Berlin on Saturday…

The leaders of France, Britain and Germany were unable to conceal their differences over Iraq at a mini-summit in Berlin on Saturday, remaining divided on when power should be returned to the Iraqis, writes Derek Scally in Berlin

Attempts by the British Prime Minister, Mr Tony Blair, to paper over differences between the British and Franco-German positions were repeatedly frustrated by Mr Jacques Chirac, the French President, who said there was "not much point in me saying we slightly disagree on this topic".

"France feels we have to take a turn in the way things are done The United Nations must play a much more significant role," said Mr Chirac. "We hope there can be an immediate transfer of power to the Iraqis, the governing council and the council of ministers, and then a devolution of responsibilities . . . done with the oversight of the United Nations."

He was responding to remarks by Mr Blair that "we really are in agreement on one thing: we want a stable, democratic Iraq, and, of course, government responsibility is to be handed over to the Iraqis as soon as possible".

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Mr Blair insisted that "differences will be overcome" but even he admitted that the only real agreement the three leaders had reached on Iraq was on what has to be agreed at this week's UN General Assembly in New York.

Their host, Chancellor Gerhard Schröder, called for the UN to play a more important role and for power to be transferred to an Iraqi authority as soon as possible. His cautious comments suggest he is anxious not to rock the boat ahead of Wednesday's meeting with PresidentBush in New York. Despite talk of common positions, the differences in body language betrayed the gulf that lies between Mr Blair and his French and German counterparts: Mr Schröder greeted Mr Blair with a polite handshake but gave a hug to Mr Chirac, in Berlin for the second time in three days.

The three leaders had more success in other areas of discussion, such as European Security and Defence Policy (ESDP) and the Stability and Growth Pact governing the euro, likely to be breached by France and Germany again this year.

Mr Blair appeared to give his tacit approval for the French and German position that policies to encourage economic growth are important even if they have a negative impact on budgetary discipline.

"I think there's very common ground on the need to maintain budgetary discipline but to recognise that as economic circumstances change it is important without in any way compromising that discipline that we also deliver to European citizens the growth they require," he said.

The three leaders said they agreed on the need to develop European defence capabilities - but not at the expense of relations with the US or NATO.

"The three of us think it is important for Europe, for strengthening its ability to act but also ... to work in partnership with the United States," said Mr Schröder. "We are firmly convinced that this will strengthen NATO. NATO is indispensable for Europe's security. In this respect, all talk about ESDP perhaps being aimed at NATO is absurd."

Mr Blair said that "issues of European defence and NATO belong together and are not at all in conflict with each other".

The three said they hoped for a successful Inter-Governmental Conference (IGC) in Rome, and rejected suggestions that the Berlin meeting was an attempt to "stitch up" a common position before the IGC, which could cause concern to smaller member-states.

"If and when we meet people wonder if we're not getting on with one another, if we are meeting, people wonder if we're getting on too well with one another," said Mr Schröder.

"I really think these concerns are unnecessary and wrong and certainly we will inform the President of the Commission, the \ presidency and will have a debriefing for all member states of the EU." Mr Blair agreed, saying: "A Europe of 25 is going to need people to try and iron out these difference so that we can move forward."