'Basis found' for EU constitution

The Convention has two weeks to finish its work

The chairman of the Convention drafting a new EU constitution says a "basis for consensus" has been reached on reforms to EU institutions.

Former French President Valery Giscard d'Estaing said the proposal, which will determine where power lies within the EU, had "significant support" among Convention members.

He was speaking at the Convention's penultimate session, just two weeks before the draft constitution is due to be handed over to the EU's Thessalonika summit.

Earlier reports said the proposal included:

• The suggestion for a long-term president of the European Council, to replace the current rotating presidency
• The idea of a slimmed-down European Commission of 15 voting members
• Mr Giscard d'Estaing's preferred voting system, whereby a vote would be carried in the Council of Ministers if it had the support of at least half the member states representing 60% of the EU's total population

However, there would also be changes to these ideas as previously presented:

• The long-term president would not have executive powers
• He or she could be a member of another EU institution, opening the way for possible future fusion of the posts of the European Council and the European Commission
• The reform of the European Commission would only take place after the next Commission steps down, in November 2009

Mr Giscard d'Estaing made his comments after working late into the night with his inner team and meeting with different groups on the Convention during the morning.

EUROPEAN CONVENTION

Chaired by Valery Giscard d'Estaing

Holding year-long discussions

Aims to simplify treaties

Trying to decide balance of power between Brussels and governments

What the draft constitution says

"One can consider that it [the new proposal] will form the basis for a final consensus," he said.

On Friday morning, Mr Giscard d'Estaing told BBC Radio 4's Today programme that EU member states would keep the right to veto decisions on tax policy.

"There is no proposal to create a competence about taxation of people, taxation of companies, or taxation of property on the Euro-level," he said.

"So on that point you will keep unanimity, unanimity means veto."