WRAPUP 2-New UK demands hit prospects for EU treaty deal

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By Paul Taylor

BRUSSELS, June 20 (Reuters) - Poland softened its tone on the eve of a crucial European Union summit due to launch negotiations on a reform of the bloc's institutions but Britain angered its partners by trying to gut foreign policy provisions.

Prime Minister Jaroslaw Kaczynski played down fears that Poland could block agreement on a new treaty to replace the defunct EU constitution, saying the fact that his twin brother, President Lech Kaczynski, would attend was a conciliatory sign.

"I would only have gone (to Brussels) if it had been about a veto. In order to say: we do not agree," Kaczynski told German daily Bild in an apparent conciliatory gesture to Chancellor Angela Merkel, who will chair the summit on Thursday and Friday.

Warsaw and Berlin have been at loggerheads over Polish demands to change the reformed voting system at the heart of the proposed treaty, which it says gives too much power to big states, especially Germany, at Poland's expense.

Kaczynski appeared to play down Poland's aim of completely changing the planned double majority decision-making procedure, saying: "At the moment, all we want is for a debate about the voting system to be allowed."

A Polish negotiator said Germany had for the first time officially acknowledged in a footnote to a document circulated on Tuesday that Poland and the Czech Republic both had problems with the proposed voting system.

While the Poles seemed more emollient, diplomats said Britain had hardened its stance in seeking to reduce the role, powers and staff of the proposed EU foreign minister.

One diplomat who attended a five-hour meeting of personal representatives of EU leaders on Tuesday evening said London had made far-reaching last-minute demands to water down the common European foreign and security policy.

Britain argues that the rejection of the constitution by Dutch and French voters in 2005 means the EU should pursue only minimal changes needed to operate more smoothly.

"IN DENIAL"

The diplomat said London demanded that a proposed EU foreign minister, whose job title would be downgraded, should not chair monthly meetings of member states' foreign ministers.

Britain also argued a planned EU foreign service should be entirely inter-governmental and not include the 3,500-strong existing external services of the European Commission, the EU's executive body, he said.

Nor would the EU foreign minister be allowed to speak on behalf of the bloc at the United Nations, except with the permission of U.N. Security Council members, such as Britain.

Officials of the German EU presidency chairing the meeting were angry, saying Prime Minister Tony Blair had never raised these demands at any of his several recent meetings with Merkel, according to the diplomat.

Britain is also seeking to remove a charter of fundamental rights from the treaty and win an exception from majority decisions on judicial and police cooperation, the official said.

"There is a risk that they will go so far that others become exasperated," the diplomat said.

British Foreign Secretary Margaret Beckett said most EU partners had been "in denial" by expecting others to stand by provisions of the planned EU constitution. She said the last few months had shown the EU could function without the new treaty.

Britain's tougher position came as leader-in-waiting Gordon Brown took a greater personal involvement in the talks.

Finance minister Brown, due to become prime minister when Blair steps down on June 27, joined Blair for a telephone conference with new French President Nicolas Sarkozy on Tuesday at which Britain made clear its "red lines" in the talks.

Brown -- who some EU officials believe is less enthusiastic than Blair about cooperation with Brussels -- knows that if a deal is done, he will face demands for a referendum on the treaty from opposition Conservatives and the Eurosceptic press, opposed to Britain ceding further powers to Brussels.

The government is keen to avoid a referendum, fearing Britons would be likely to vote "no".

The European Commission warned Poland on Tuesday it could lose money and support if it blocked a deal to reform EU institutions at the summit. (additional reporting by Dave Graham in Berlin and Adrian Croft in London)

Keywords: EU TREATY/