The European Union agreed today to sign a free-trade pact with South Korea and grant Pakistan trade concessions after floods, but a row over France's deportation of Roma migrants marred a one-day summit.
The agreement on trade issues was a boost for the EU at a meeting where leaders - including Taoiseach Brian Cowen - discussed ways to enhance the bloc's role in global affairs and in particular its relations with emerging powers such as Brazil, Russia, India, China, and South Korea.
An angry exchange between French president Nicolas Sarkozy and European Commission president Jose Manuel Barroso over the Roma issue overshadowed these agreements, although the leaders later agreed to try to draw a line under the affair.
Diplomats said the dispute pushed into the background planned discussion of EU budget rules, intended to prevent a new financial crisis, even though the leaders adopted a statement calling for efforts to keep up momentum on the reforms.
"Sarkozy made a strong point defending France's position. Jose Manuel Barroso stood up and said he was not happy with the current situation in France. Sarkozy replied in a sharp manner," one diplomat said of the clash.
A dispute had been simmering all week over France's deportation of about 8,000 Roma migrants to Romania and Bulgaria in a crackdown on crime.
The EU's executive Commission has accused France of breaking EU law and threatened legal action. French leaders were angered by a statement by EU justice commissioner Viviane Reding, who urged France not to return Europe to the climate of the second World War.
"All the heads of state and government were shocked by the extreme views of the vice-president of the Commission (Reding)," Mr Sarkozy told reporters, accusing her of distorting history.
He declared the subject closed and EU president Herman Van Rompuy made it clear he wanted to move on to other matters.
"The problem of the Roma is one we will have to discuss at a future Council (summit)," Mr Van Rompuy said.
EU leaders will hope now to end the tension between the Commission and France, one of the biggest member states, because they could sour the atmosphere at talks on other EU matters.
In an early success at the meeting, member states secured Italy's backing for the free-trade pact with South Korea, reaching a compromise to delay by six months the introduction of an agreement that Rome fears could hurt its car industry.
"This is the first generation of bilateral trade agreements which will bind Europe and Asia together in an ever-closer economic bond. This is a very big step in opening markets in Asia for our companies," said Belgian foreign minister Steven Vanackere, whose country holds the EU presidency for six months.
EU officials say the agreement will create about €19 billion of new exports for EU producers and combined EU-South Korea trade in goods was worth about €53 billion in 2009, according to EU figures.
The deal is due to be signed at an EU-South Korea summit in Brussels on October 6th and will come into force from July 1st, 2011.
The 27 member states agreed to grant trade concessions to Pakistan but the Commission will have to work with the World Trade Organisation to finalise how they will be implemented and ensure trade rules are not violated.
"We want to give maximum support, more aid and more trade. We want Pakistan to recover now," Mr Van Rompuy said referring to the devastating floods in Pakistan.
Although there was no detailed discussion of efforts to reform EU budget rules, German chancellor Angela Merkel said Berlin would not agree to an extension of a safety net set up to protect euro zone countries that needed a bailout.
This means work on reform of the 16-country euro zone will continue after a task force led by Mr Van Rompuy presents its recommendations on reforms next month. The Commission will present its own proposals on September 29th.
The EU agreed in May on a rescue mechanism for indebted countries and states have agreed to submit budget plans for early review by the Commission and other governments.
Pressure is growing for more emphasis on controlling debt levels, particularly among the 16 countries that use the euro, and for tougher and earlier sanctions on budget sinners.
Reuters