EU 'closing in' on constitution deal, says Ahern

European Union leaders are "closing in" on a constitution agreement but there are still differences, particularly over member states' voting powers, the Taoiseach, Mr Ahern, and current EU President said this evening.

"Much of the discussion today focused on institutional matters - voting, the Commission, parliament. As you'd expect there are different points of view, but I think we're closing in on an agreement," Mr Ahern told a news conference after the first session of a two-day summit in Brussels.

The Irish presidency put forward a compromise package yesterday which looked set to narrow differences over member states' voting powers, the bloc's battered budget rules and policy areas where national vetoes remain.

Poland and Spain, whose stand voting rights sunk a deal last December, voiced hope that they could agree a text this time round. And Britain, although it vowed not to give ground on its "red lines", said a deal was more likely than not.

"I'm not over-optimistic," Mr Ahern said, announcing that Dublin would make some final proposals tomorrow morning to answer member states' remaining objections.

"There are still very difficult issues that we have to try to conclude. We've today got a full contribution by all member states...now we have to work on what they've all stated."

The Irish document proposes that most decisions will only be passed by the Council if they acheive a qualified majority of 55 per cent of EU member states representing at least 65 per cent of the population.

In a move designed to prevent large countries banding together to override the wishes of smaller states, it also proposes a that blocking minorities could only be possible if they contain at least four countries.

Spain has reacted positively to the Irish plan. "Spain is satisfied with the proposal . . . it isn't 100 per cent of what Spain has asked for but it is very close," a Madrid government source said. The Polish prime minister, Mr Marek Belka, was also optimistic, predicting agreement on the constitution at the summit.

The compromise also included new wording on the Commission's power to police budgets.

EU leaders are also due to meet later this evening to decide on a successor to current European Commission President, Mr Romano Prodi.

Whoever is nominated will take up the post for five years from November 1st.

There are no officially declared candidates, but Belgian prime minister Mr Guy Verhofstadt, Luxembourg prime minister Mr Jean-Claude Juncker, EU external relations commissioner Mr Chris Patten and Mr Ahern are considered front-runners. Also in the picture is Ireland's Mr Pat Cox, who stood down as leader of the European Parliament last month.

Mr Juncker, a freshly re-elected Christian Democrat who is the preferred choice of most leaders, insisted he would not seek or accept the job and said he backed Mr Verhofstadt.

However, the Belgian leader's chances were dashed last night when Britain said it would not be supporting him. It is understood the Blair government favours a candidate with a less federalist outlook. France and Germany have both signalled their support for Mr Verhofstadt, while Mr Ahern is also expected to nominate him this evening.

Mr Ahern again insisted this morning he would not allow his name go forward, but many within political circles, including the Fianna Fáil party, believe he may accept the job if asked.

Additional reporting Reuters