EU closes on deal on Irish Lisbon demands

The European Union moved closer to a deal yesterday to offer Ireland legal guarantees on national sovereignty that would increase the chances of Irish voters backing a treaty reforming EU decision making.

Ireland is confident a deal will be reached in time for EU leaders to approve it at a two-day summit starting tomorrow. The Irish government would then be likely to hold a second referendum on the Lisbon reform treaty in September or October.

The leaders will also back José Manuel Barroso for a second term as president of the executive European Commission at the summit, discuss financial regulatory reforms, step up the fight against unemployment and plot strategy for UN climate talks.

"There is a broad consensus on the text. The only country still wavering is Britain," an EU diplomat said of negotiations in Brussels on a draft of the proposed guarantees.

After Irish voters rejected the treaty in a referendum last June, Dublin is seeking assurance on issues including taxation, abortion and military neutrality, and wants to continue to have a representative on the European Commission.

Britain had said the assurances on national sovereignty in military matters should be worded to make clear it applied to all EU states, not just Ireland, a second EU diplomat said. While all accepted the final text would be legally binding, Britain also wanted more debate on which legal instrument the EU should choose to express the guarantees, the diplomat added.

Ireland's referendum is vital because reforms intended to streamline decision making in the EU and give it more weight on the world stage can go into force only if all 27 member states approve the Lisbon treaty.

Opinion polls suggest the treaty now has the support of a majority of Irish voters, many of whom look to Europe as a shield in the global financial crisis.