German lawmaker cautions French candidates on ECB

By Noah Barkin

BERLIN (Reuters) - A leading German conservative cautioned France's presidential candidates against calling the European Central Bank's independence into question after a first round vote set up a two-way battle to succeed Jacques Chirac.

Eckart von Klaeden, an ally of Angela Merkel and foreign policy expert for her Christian Democrats (CDU) in parliament, said he expected the German chancellor could work well with either conservative Nicolas Sarkozy or Socialist Segolene Royal.

But he told Reuters Germany viewed campaign calls from both contenders for the ECB to do more for European growth and be more active in curbing the rise of the euro as unhelpful.

"In France there is a different tradition as far as relations with the central bank are concerned. For us it is clear that the independence of the ECB cannot be called into question."

Last month, Sarkozy dropped his call for the ECB's statutes to be changed to give more emphasis to growth and jobs, but he has also made clear that he will not be shy about stepping on the bank's toes, particularly regarding the euro currency, which is hovering near all-time highs.

Royal has been even more forthright, demanding changes to the ECB's mandate that would shift its focus to growth as well as inflation.

ECB officials have rejected the French demands, saying politicians should reform their domestic economies instead of blaming outside forces for sluggish growth.

Turning to the EU constitution, which Merkel has vowed to revive following its rejection by French and Dutch voters in 2005, von Klaeden expressed concerns about the risks of a new referendum in France.

While Sarkozy wants to bypass French voters by pushing a pared-down version of the vetoed constitution through parliament, Royal reiterated in her speech to supporters on Sunday that she favored a new referendum.

"France has already seen how unrelated issues can play a decisive role in a referendum," von Klaeden said. "Therefore there are good reasons why we don't have referendums in Germany on issues like this."

Fears of globalization and European Union enlargement, notably the addition of largely-Muslim Turkey to the bloc, were key factors behind France's rejection of the draft constitution.

Both Merkel and Sarkozy oppose Turkish membership, but von Klaeden said it would ultimately be up to Ankara to determine whether the country joined the 27-nation club -- regardless of who becomes French president after a May 6 run-off.

"Turkey must meet all the criteria -- there will be no membership rebate," von Klaeden said. "It is up to Turkey whether and when it becomes a member of the European Union."