EU to accept Franco-German treaty "present"-France

* Minister says Franco-German deal no diktat

* Sees summit accepting budget, treaty changes

* Responds angrily to commissioner Reding

By Stephen Brown

BERLIN, Oct 28 (BestGrowthStock) – France believes European Union
leaders will adopt a Franco-German deal on budget rules at their
summit on Thursday and Friday and dismissed as a “nuisance” an
EU official who called the bilateral initiative irresponsible.

Leaders are expected to agree sanctions for member states
that violate deficit and debt rules, but Germany and France have
caused upset with an independent deal seeking changes to the EU
treaty in order to guarantee long-term fiscal discipline.

French European Affairs Minister Pierre Lellouche said in
Berlin on Thursday that some “dramatisation” was inevitable at
the summit, but “there is a sense of realism that will triumph
at the end of the day, maybe not already tonight”.

He rejected criticism that the two euro zone giants were
dictating policy, telling reporters: “It is no diktat, it is a
Franco-German present to Europe. Of course it is not aimed at
dictating from the big to the small, that is ridiculous.”

Germany wants limited amendments to the EU’s Lisbon treaty
to allow for a permanent system to handle sovereign debt crises
in countries that use the euro, and has threatened to block the
other reforms if no deal is reached on treaty alterations.

The EU’s executive Commission has put pressure on German
Chancellor Angela Merkel and French President Nicolas Sarkozy to
abandon their proposals, unveiled by surprise at talks in the
French town of Deauville on Oct. 18.

European Justice Commissioner Viviane Reding has warned that
this would mean opening a “Pandora’s box” after taking a decade
to negotiate the treaty and called it “irresponsible” —
provoking an angry response from Lellouche.

“You just don’t go and attack publicly the leaders of France
and Germany or anybody. Elected leaders must not be called
irresponsible by members of the commission who themselves are
not elected by anybody, by the way,” he said of Reding.

Lellouche said the French and German leaders were within
their rights to seek treaty changes, adding: “Who is this lady
to say an elected president and chancellor cannot propose this?”

The French minister said Reding had previously concentrated
her outspoken criticisms on France because of its expulsion of
Roma people from illegal settlements, but was now broadening her
“offensive” to include Germany as well.

“I am glad now that she has broadened her area of nuisance
value,” he joked.

EU to accept Franco-German treaty "present"-France