European Union foreign ministers are reporting big strides towards agreeing a common defence policy as talks on an EU constitution reach a crucial stage in Naples, Italy today.
Mr Michel Barnier, the European Commission's representative at the talks, said the parties were nearing a deal under which all states would endorse a mutual defence pledge compatible with NATO commitments and acceptable to the four non-aligned nations.
The optimism follows joint proposals from Britain, France and Germany put to the meeting late last night.
NATO defence ministers are bound to take up the issue when US Defence Secretary Mr Donald Rumsfeld visits Brussels tomorrow and Secretary of State, Colin Powell, has already sought information about the proposals.
Today, EU ministers begin thrashing out the most divisive issues of member states' relative weighted votes in decision-making, and the size of the future European Commission, as well as the powers of a future EU foreign minister.
The vote-weighting issue has proved particularly divisive with Poland and Spain insisting they receive voting power far greater than the size of their populations.
They insist they will oppose the constitution draft if their voting rights are diluted. But Italian Foreign Minister Franco Frattini has said there will be no bowing to Spanish demands.
The argument will dominate today's talks and are likely to lead to a showdown at the EU summit in Brussels in two weeks' time which is due to finalise the constitution.
Mr Barnier said that aside from the progress on defence, he was worried that many other issues remained unresolved and the Naples meeting, billed by Italy as a conclave of the kind that elects popes, could lead to regression on other areas of European intergation.
"The smoke isn't white. In fact there isn't any smoke," he said.