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Chancellor lists lofty goals for EU presidency

German Chancellor Angela Merkel has outlined an ambitious program for her country's six-month EU presidency, saying the bloc must set a timetable for adopting an EU constitution and revive talks on a global trade deal, as Berlin prepares to play its strongest diplomatic role in years.

Expectations are high that the EU's richest and most populous nation -- which has also taken over the chairmanship of the Group of Eight industrial powers -- will resolve the fate of the stalled EU charter and guide the EU through negotiations on a new partnership agreement with Russia aimed at securing reliable oil and gas supplies.

Merkel, who has already won praise for her diplomatic efforts on Middle East peace and breaking an EU budget deadlock, will be watched closely by people seeking a way forward for the sputtering European project. But there are questions about how much she will be able to accomplish in a year that will see leadership changes in key EU nations France and Britain.

Addressing the European Parliament, Merkel said she would consult all 27 EU nations to hear their reservations about the landmark treaty -- which was ratified by 18 states but rejected in Dutch and French referendums in 2005 -- and to determine which parts can be rescued to form the basis of a new document.

"The reflection pause is over. By June, we must reach a decision on what to do with the constitution," she told EU lawmakers on Wednesday during her first appearance at the EU assembly. "It is in the interest of Europe to end this process successfully by the next European elections in 2009."

Germany wants to save as much as possible of the draft text, which was designed to accelerate policy-making and give the EU, now with 489 million people, more visibility on the world stage by creating the posts of EU president and foreign minister.

"We need a foreign minister for Europe. That's enough of a reason to adopt a constitutional treaty," Merkel told the parliament. "We must give a soul to Europe; we have to find Europe's soul. Any failure could be a historic failure."

France faces a presidential election this year, while British Prime Minister Tony Blair, whose country also has reservations against the constitution, is set to leave office, meaning Merkel must wait for new partners to make a decisive move on the treaty.

Merkel said she was convinced Britain would not block the charter, as no new EU enlargement would take place without a streamlined decision-making process defined by the treaty.

"I am sure Britain is still interested in new members being given a chance in the EU," she said.

Merkel said global trade talks were another of her priorities for Germany's EU presidency; she urged Europe to take a "resolute stand" to achieve a successful outcome.

"There is too much to lose for us and the developing countries," she said, if they miss the chance to complete trade talks.

But she gave no hints about whether she would push for a cut in EU farm spending, which diplomats say is key to any global trade deal.

Merkel called for a broad partnership with Russia based on a new cooperation agreement, but warned that the EU cannot ignore Russia's squabbles with neighboring countries. She called Russia's recent decision to cut oil exports in a dispute with its neighbor Belarus worrying.

"We intend to do everything we can for a new partnership and cooperation agreement with Russia to begin under the German presidency," she said.
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