Eu Leaders Reach Diluted Treaty Deal

European Union leaders reached an agreement on a new treaty yesterday after watering down its key contents.

We have reached a complete deal on the content of the treaty of Amsterdam, Dutch Prime Minister Wim Kok announced after the 15 leaders wrapped up marathon talks shortly before 3.30 a m (01.30 GMT).

The final decision was held up for a few hours by Spain, which was demanding a guarantee that it would still be treated as a large member state once the EU agreed on a new system of voting and representation in the bloc.

Earlier, European Union leaders, meeting on the treaty since Monday, watered down many of the proposals facing them and failed to agree on key institutional reforms to expand into eastern Europe.

European Commission Presid- ent Jacques Santer put a brave face on the meagre outcome, saying Rome wasnt built in a day. No one can deny that we have today taken a new step towards European unification, he told a final news conference. German Chancellor Helmut Kohl, who blocked a significant extension of majority voting in EU decision-taking, said sensible compromises had been reached on all points.

The treaty was seen as crucial to preparing for some dozen new members over the next decade. But the leaders ducked the key issue of reforming the weighted voting system for member states, postponing a decision until just before enlargement takes place.

Among the decisions taken were to leave the Western EU defence grouping independent of the EU, to grant Britain and Ireland opt-outs from a plan to lift internal frontier checks, to make job creation a formal EU goal, and to increase cooperation in foreign policy and asylum policy. The outcome left key reforms to be taken early next century, with the prospect of another battle between big and small states on their relative powers in EU decision-taking.