* EU hopes for deal to ease concerns of Irish voters
* EU leaders aim to endorse Barroso for second term
* Leaders want fast progress on financial regulation reform
By Timothy Heritage
BRUSSELS, June 16 (Reuters) - The European Union hoped to
complete a deal on Tuesday to offer Ireland legal guarantees on
national sovereignty that would increase the chances of Irish
voters backing a treaty reforming EU decision making.
Ireland is confident a deal will be reached in time for EU
leaders to approve it at a two-day summit starting on Thursday.
The Irish government would then be likely to hold a second
referendum on the Lisbon reform treaty in September or October.
The leaders will also back Jose Manuel Barroso for a new
term as president of the executive European Commission at the
summit, discuss financial regulatory reforms, step up the fight
against unemployment and plot strategy for U.N. climate talks.
Ireland's referendum is vital because reforms intended to
streamline decision making in the EU and give it more weight on
the world stage can go into force only if all 27 member states
approve the Lisbon treaty.
EU envoys were discussing the guarantees for Ireland on
Tuesday and Dublin was confident a deal would be reached.
"Depending on a successful conclusion to this week, it would
be unreasonable for Ireland ... to in any way block the reforms
necessary to make the EU effective on the world stage," Irish
Foreign Minister Micheal Martin said after talks on Monday.
Ireland wants assurance on issues including taxation,
abortion and military neutrality, and wants to continue to have
a representative on the European Commission. []
Dublin identified these as issues that worried Irish voters
when they rejected the treaty in a referendum in June last year.
Opinion polls suggest the treaty now has the support of a
majority of Irish voters, many of whom look to Europe as a
shield in the global financial crisis.
BARROSO FACES OBSTACLES
Barroso hopes the summit will give him a legally binding
endorsement for a second five-year term but may receive only a
political statement saying he has the EU leaders' confidence.
Some states want to delay his formal nomination until the
Lisbon treaty goes into force because the structure of the new
Commission and the ratification process for the president will
change under it.
"We need a decision that will help us deal with the
political challenges. The political challenges aren't going to
wait until Europe gets its house in order," said Commission
spokesman Johannes Laitenberger.
Barroso, 53, a conservative former prime minister of
Portugal, has headed the EU's executive since 2004 and would
represent stability at a time of economic crisis.
No one else is in the running for the appointment, which
would also need the approval of the European Parliament.
The Commission has far-reaching regulatory powers and
proposes much of the EU's legislation. The president decides its
policy priorities and chooses the other Commission members.
One of those priorities will be implementing new financial
regulations to prevent another global economic crisis.
The EU leaders are expected to demand quick progress on this
at the summit, particularly on regulation of alternative
investment funds and improved capital requirements for banks.
They are also set to approve the creation of two new bodies
to assess potential threats to financial stability and protect
small financial firms and consumers, and call for the new
regulatory framework to be in place in 2010.
The action coincides with U.S. President Barack Obama's plan
to outline regulatory reforms on Wednesday, targeting critical
weaknesses in the U.S. financial system such as thin bank
capital cushions and eroded lending standards. []
The summit will also include discussion of the EU's strategy
for the U.N. climate talks in Copenhagen at which agreement is
sought on a new pact to combat climate change, and will make a
new commitment to fight soaring unemployment.
(timothy.heritage@thomsonreuters.com; +32 2 287 6801; Reuters
Messaging: timothy.heritage.reuters.com@reuters.net))
