Blair and Chirac 'heal Iraq rift'

The two leaders agreed on several issues

Tony Blair and French President Jacques Chirac tried to put their differences over Iraq behind them when they met on Wednesday night.

Their first proper meeting since the war lasted two hours and the two men emerged smiling.

Mr Blair told a joint press conference: "Whatever the differences that have been over Iraq, I have no doubt at all that it is vitally important for the future of both our countries and for the future of Europe that Britain and France work closely together."

Mr Blair is to have breakfast talks with the French Prime Minister, Jean Pierre Raffarin, in Paris, before flying back to Britain.

There is no Europe without defence, and no European defence without England

Jacques Chirac
French president

On Wednesday, Mr Chirac emphasised the common ground Britain and France shared over the drafting of a new EU constitution by the European Convention.

EU ministers are due to review the draft at a summit in Thessaloniki, Greece, later this month.

The project aims to adapt European institutions to a Europe enlarged to 25 members in 2004.

"Britain and France...will without doubt have a common position regarding the convention and the (European) institutions, or in any case a very close (position)," said Mr Chirac.

United

The French president also voiced his desire to see Britain join the single currency.

But he emphasised the timing of the move had to be Britain's choosing.

Mr Blair repeated that the UK was in favour of joining, when "certain obstacles" were removed.

Smiles masked any unease over Iraq

On Monday Chancellor Gordon Brown set out the reasons why the government believed it was not in Britain's current economic interests to ditch the pound.

The two leaders were united in their condemnation of Wednesday's suicide attack in Jerusalem, which killed 16 people.

But there were remaining issues of difference between them, including on European defence policy, which France has been keen to develop outside of Nato.

The British prime minister resists this idea, but he said: "We are both agreed that it is vitally important we take European defence forward, not because it is in any shape or form directed against our transatlantic alliance, but on the contrary as a compliment to it."

Mr Chirac said: "There is no Europe without defence, and no European defence without England."

The Anglo-French split over defence reflects a wider disagreement on transatlantic relations.

While Mr Blair is keen to heal the rift which developed over Iraq, his French counterpart wants Europe to act as a counter-balance to the US.