Paris blog: Sarkozy has taken over a bedraggled EU

Nicolas Sarkozy wants to reunite the European family. But yesterday, on his first day as its patriarch, he found himself presiding over a tribe squabbling about everything from defence to tax to climate change.

The French President admitted that his six months at the head of the EU were going to be tougher than expected and on Day 1 his grand plans were already looking over-optimistic.

He conceded that the community faced deadlock over the Lisbon treaty and that winning acceptance for his ideas on issues such as immigration and trade could be complicated.

“The goals of the French presidency are to solve the institutional crisis, to find a solution despite the deadlock that we are currently facing,” he told journalists at the Elysée Palace. “We are also trying to find solutions on issues such as immigration and \ environment. But, believe you me, negotiating energy and climate change in the European Commission is not easy.”

Plans to encourage Ireland to reverse its rejection of the treaty by urging the remaining 26 EU members to ratify took a knock when President Kaczynski of Poland declared that signing would be pointless until the final Irish outcome was clear.

Paris sought to play down Mr Kaczynski’s move, saying that it did not reflect Poland’s wishes. “It doesn’t appear to be of importance,” Jean-Pierre Jouyet, the Europe Minister, said. “I have confidence in the European spirit of the polls and what counts is that their parliament and Government remain engaged.”

Mr Kaczynski’s stance followed that of Vaclav Klaus, the Eurosceptic Czech President, who also has the role of completing his country’s ratification but who declared the treaty dead after the Irish vote. President Köhler of Germany has also refused to sign while his country’s Constitutional Court considers the document, although his assent is considered a formality.

There were signs of growing frustration with the Czechs, who will take on the EU presidency after France. A senior Elysée source said: “If they dig their heels in over ratifying the treaty, they are going to start their presidency in a state of isolation.”

In the clearest indication that France wants to see a rerun of last month’s Irish referendum, a senior source said: “We need some kind of vote to get out of this situation — Parliament or referendum, I don’t know. But when democratic society says ‘no’, you need some sort of democratic solution.”

The fight against flagging enthusiasm for the treaty threatens to divert Mr Sarkozy from the key aims of the French presidency — which are also dividing the EU.

Mr Sarkozy wants to show that the EU can provide answers to rising global commodity prices with a review of VAT, the tax that helps to fund the EU. But his proposed method of progressive reductions in VAT as fuel prices soar is being fiercely resisted by Britain and Germany, who see the proposal as populist and unworkable. The hand of Carla Bruni, Mr Sarkozy’s singer wife, was discerned in his new enthusiasm for dropping the French rate of VAT on CDs and DVDs from 19 to 5 per cent.

French proposals for a European asylum and immigration pact that rules out future wholesale naturalisation are being resisted by Spain, while Britain and Ireland are set to opt out. The rest of the continent appears likely to sign up and France is confident that a deal on immigration will be one of its first successes.

Mr Sarkozy’s idea for EU border taxes on goods made in countries that do not follow strict environmental rules is also running into trouble from Britain and other trade liberals such as the Netherlands and Sweden. Another battle is looming with Britain over reform of the Common Agricultural Policy, described in Paris as essential for the EU.

Mr Sarkozy also insists that when he calls for the EU to protect EU citizens from the downside of globalisation, he does not mean protectionism. But he relaunched his spat with Peter Mandelson, the EU Trade Commissioner, alleging that 100,000 French jobs were at risk from the British official’s liberalising proposals. Mr Mandelson missed the Commission’s dinner with Mr Sarkozy last night and said: “President Sarkozy’s further attack is disappointing.”

Le flair

— France is spending €180m on injecting flair into its spell in the chair — ten times the British expenditure in 2005

— Yesterday the Eiffel Tower was lit from top to bottom in the blue and gold colours of the Union

— At the same time a team of six women planted the EU flag at the top of Mont Blanc in a salute to France’s mountainous ambitions

— Two events will be staged every day for the next six months in an effort to revive enthusiasm for the Union and France’s role as a founding member

— On Bastille Day, after 44 foreign leaders attend a summit on the Mediterranean, “Europe dances” will be held from Lille in the north to Marseilles in the south

— The designer Philippe Starke has been appointed artistic director and has designed the presidency logo, a special €2 coin and paraphernalia such as briefcases, stationery, pens and ties

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