Sarkozy's European vision -- some headaches ahead

BRUSSELS (Reuters) - European Union officials are preparing for headaches as they digest some of the European views of French president-elect Nicolas Sarkozy, despite their congratulatory statements and sighs of relief.

European Commission President Jose Manuel Barroso was quick to welcome his centre-right ally's victory, voicing confidence that Sarkozy would put France back at the heart of European integration and work for a quick solution to replace the bloc's defunct constitution.

"I have every confidence that Nicolas Sarkozy, whose convictions I know and whose strong beliefs are known to all, will play a driving role in resolving the institutional question and in consolidating a political Europe," Barroso said.

But other Brussels officials are alarmed at some of the conservative Gaullist's other campaign promises, inspired by a philosophy of national and European economic protection at odds with EU orthodoxy, and at his opposition to Turkey's candidacy.

In his acceptance speech, Sarkozy proclaimed himself a lifelong European and said: "Tonight France is back in Europe."

But he also urged France's partners to "hear the voice of the people who want to be protected", and who see the EU as a "Trojan Horse for all the threats of a changing world".

EU officials, speaking on condition of anonymity, said they assumed Sarkozy would be more orthodox in government than he had sounded when running for office. But his campaign rhetoric raised several anxious questions in Brussels:

- Will he really push for a weaker euro and how?

- Will he prevent the EU making necessary concessions to reach a world trade agreement this year?

- And will he try to halt Turkey's accession negotiations, as President Charles de Gaulle did twice with Britain in the 1960s?

EURO, TRADE, TURKEY

As a candidate, Sarkozy repeatedly blamed the European Central Bank for the single currency's high exchange rate, which he said was hitting European competitiveness.

"We are depriving ourselves of an instrument to create growth, provide jobs, for purely ideological reasons," he said.

EU Monetary Affairs Commissioner Joaquin Almunia went out of his way to rebut that view. He reaffirmed on Monday that figures show EU exports have not suffered from the strong euro, indeed France's trade balance with the United States has improved.

In interviews with French media, Almunia warned against "demagogic arguments" on the euro and said: "People must not give in to the temptation of a protectionist discourse."

German Finance Minister Peer Steinbrueck added his voice on Monday, saying no restrictions should be put on the ECB.

Under outgoing President Jacques Chirac, France repeatedly fired warning shots across the bows of the European Commission each time it hinted at EU concessions on agriculture in long-running World Trade Organisation talks.

Sarkozy is seen as far less wedded to the farming lobby, but his campaign call to revive the "community preference" principle sounded to many in Brussels like a 1960s throwback or a bid to build a "fortress Europe" rather than embracing globalization.

He also said ministers rather than EU Trade Commissioner Peter Mandelson should conduct the WTO negotiations, drawing a rebuff from the Commission.

On Turkey, Barroso has already begun to try to talk Sarkozy out of blocking membership talks -- a move that would trigger a crisis with a strategically important neighbor. He noted that member states unanimously approved the EU's negotiating mandate.

"If one or several member states wanted to call that mandate into question or change it, they would have to take the initiative and take responsibility for the consequences.

"The Commission's position is that we should continue the negotiations and we recommend that member states only take a final decision on Turkey's membership or not at the end of those negotiations and only on the basis of the results of the negotiations," Barroso told reporters.