Finland says new EU treaty could hurt small states

Finland's prime minister criticised the draft European Union constitution on Monday, saying several proposals would hurt smaller member states.

The draft is designed to shake up institutions and streamline decision-making before the 15-nation bloc admits 10 new members next May. Negotiations on a final treaty are due to begin at an Inter-Governmental Conference (IGC) in October.

"The draft includes a number of problematic proposals for Finland and other smaller member states," Prime Minister Matti Vanhanen said in a speech at a foreign ministry reception.

"They do not fulfil the principles that are important to us, like maintaining the balance between (EU) institutions and equal rights of member states."

Mr Vanhanen said he did not agree with plans to change the rules on common defence and announced the government would submit its proposals for the IGC to the Finnish parliament early in September.

Finland like Britain, Spain and a few other EU members say the IGC can completely renegotiate parts of the draft. Other states led by France and Germany, disagree.

Italy, the current holder of the EU's rotating presidency, is rushing to wrap up negotiations by the end of its six-month term in December. Smaller states have said a number of issues would require careful negotiation.

These include the size and voting rights of the executive European Commission, relations between the executive and the Council of member governments, the future of the presidency and how decisions are made on a common foreign policy.