EU faces fresh treaty obstacle after Irish "no"

By Ingrid Melander and David Brunnstrom

BRUSSELS (Reuters) - The EU faced a new obstacle in its bid to salvage a reform treaty as leaders said on Friday Prague had a problem quickly ratifying it after Ireland's "No" vote.

The 27-member European Union now faces months of further uncertainty over the Lisbon Treaty originally meant to put an end to more than a decade of institutional wrangling and bolster the bloc's economic and political voice on the world stage.

Most leaders sought to put a positive spin on the outcome of a two-day summit, noting that ratification of the treaty by other countries would continue and they would review the way forward together with Ireland at their next meeting in October.

"Our agreement gives a very positive impulse towards the final solution," Slovenian Prime Minister Janez Jansa, who chaired the summit, told a closing news conference.

However a footnote added to the final declaration noted a new potential stumbling block in the Czech ratification process:

EU leaders acknowledged the Czech Republic could not complete ratification until its constitutional court rules, probably not before October, on whether the treaty is in line with its constitution.

The treaty is designed to give the bloc stronger leadership and institutions to cope with recent and future enlargement.

British Prime Minister Gordon Brown said he expected all the other 26 member states to ratify the text and Ireland to come back to its partners with ideas for the way forward in October.

Traditionally Euroskeptical Britain raised EU spirits this week by concluding parliamentary ratification but a high court judge advised Brown on Friday not to complete the process until he had ruled on a civil suit demanding a referendum.

French President Nicolas Sarkozy, who inherits the issue when France takes on the rotating EU presidency on July 1, pointed to the risk of contagion.

"Ireland is a problem. But if we had a second or a third problem, it would become very difficult to solve," he said.

"A renegotiation of the treaty is out of the question. We are not going to redo a second simplified treaty," he said, noting the Lisbon Treaty was itself a boiled-down version of the EU constitution rejected by French and Dutch voters in 2005.

DEAD?

All 27 member states must ratify for it to take effect. The Czechs, whose Euroskeptical centre-right Civic Democrats are concerned about national sovereignty, had sought to prevent any call for continued ratification after the June 12 Irish referendum defeat.

Czech President Vaclav Klaus declared the treaty "dead" after the Irish vote and the Senate has referred the text to the constitutional court.