Merkel says Lisbon treaty vital for EU to function

By Gabriela Baczynska

GDANSK, Poland (Reuters) - The European Union needs the Lisbon treaty, despite its rejection by Irish voters in a referendum last week, in order to be able to function properly, German Chancellor Angela Merkel said on Monday.

The treaty is designed to streamline decision-making in the 27-nation EU and provide the bloc with a permanent "EU President" and a foreign policy supremo. The Irish rejection of the treaty has cast doubt over its survival.

"The EU needs the Lisbon treaty to be able to act and for future enlargements (of the EU)," Merkel said through an interpreter after talks with Polish Prime Minister Donald Tusk in the Baltic port city of Gdansk.

"Together with Ireland we have to work out a solution and the process of ratification should be finalized in all 26 other countries. I am sure we will develop a solution for Ireland," Merkel told a joint news conference.

All 27 EU member states must approve the treaty before it can come into force. No country other than Ireland plans a referendum on the treaty.

Tusk echoed Merkel's remarks about enlargement. Poland is a strong supporter of Ukraine's eventual accession to the bloc.

"If we seriously think about further enlargement of the EU then we must seriously talk about how to finalize the Lisbon treaty ratification," he said.

Supporters of EU enlargement fear the prospect of further prolonged discussions about the bloc's internal constitutional arrangements will greatly hamper moves to admit new members.

Both chambers of Poland's parliament voted in April to ratify the Lisbon treaty, which would replace a more ambitious EU constitution rejected by French and Dutch voters in 2005.

Polish President Lech Kaczynski has delayed signing the reform on technical grounds. His office said before the Irish referendum that a 'No' vote in Ireland would not affect Kaczynski's plan to sign it.

(Writing by Gareth Jones; Editing by Janet Lawrence)