Italy, which currently holds the EU Presidency, has offered Ireland and other EU neutrals a concession on defence in a new draft text of the proposed EU constitution, write Denis Staunton, in Brussels, and Mark Brennock.
However, many key issues remain unresolved, including Ireland's opposition to abolishing the veto on tax questions.
The original draft constitution includes a mutual defence clause but now states that the measure will not affect "the specific character of the security and defence policy of some member-states". The Department of Foreign Affairs was examining the text last night to establish whether it would exempt Ireland from a mutual defence obligation.
As France and Germany insisted that any treaty agreed at this weekend's European Council meeting in Brussels must be on their terms, and the Taoiseach expressed concern about proposals on tax and defence, the Italian Presidency published a new draft text.
The Taoiseach, Mr Ahern, told the Dáil yesterday that there was no question of Ireland agreeing to participate in an EU mutual defence arrangement. "I believe our position is clearly understood. This country has never been afraid to take a very active and appropriate role under a UN mandate. However, we are not disposed to move into a mutual defence situation on the basis which was proposed."
The new draft also appears to answer Irish concerns about proposals to abolish the need for unanimity on some criminal law measures. It allows any country that believes a measure affects the fundamental nature of its legal system to refer the measure to EU leaders, to be decided by unanimity.
Irish officials in Brussels gave the new draft a cautious welcome last night, but declined to comment on it in detail before legal experts had studied it. The Government remains concerned, however, that the need for unanimity could be abolished for a limited number of tax issues.
Among the most significant changes proposed in the new draft is a weakening of the "passarelle" clause that would allow EU leaders to agree unanimously to abolish the national veto on any policy area except defence.
The new text proposes that the measure, which would avoid the need for treaty changes to be ratified by all member-states, could be blocked by the objection of a single national parliament.
Italy is today expected to publish a second document proposing changes to the draft articles covering the reform of EU institutions. They include the draft treaty's most divisive proposal, to change the way member-states vote in the Council of Ministers.
The leaders of France and Germany said yesterday that the new treaty must adopt a "double majority" system whereby a measure could be passed by a majority of member-states representing 60 per cent of EU citizens. Spain and Poland are insisting that the system of weighted votes agreed at Nice should be retained.
The French President, Mr Jacques Chirac, urged Warsaw and Madrid to "make a gesture" to save this weekend's summit and warned that France and Germany would block a deal if they failed to get their way.
"The Chancellor and I will not accept an accord at any price. We want an accord that reflects our idea of a future Europe," he said.
Warning of long negotiations in Brussels, the Taoiseach noted that the discussion on the treaty might not begin until Friday evening after other issues are dealt with. "If that is the case and the Italian Presidency intends to finish it, we are in for a long weekend," he said.