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Dutch reject eu charter in referendum

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   http://www.reuters.com/newsArticle.jhtml?type=worldNews&storyID=8669573

http://www.reuters.com/newsArticle.jhtml?type=worldNews&storyID=8669573

Dutch reject EU charter in referendum - exit poll
Wed Jun 1, 2005 03:06 PM ET


By Emma Thomasson
AMSTERDAM (Reuters) - Dutch voters rejected the European Union constitution on Wednesday, exit polls showed, deepening a crisis in the bloc and possibly dooming the treaty after fellow EU founding member France rejected it on Sunday.

Interview/NSS projected the "No" camp had won 63 percent of votes based on an exit poll to 37 percent for the "Yes."

The resounding "No" is the latest sign of Dutch anger with the political elite since the 2002 murder of anti-immigration populist Pim Fortuyn, with unease stoked by last year's killing of a filmmaker critical of Islam.

The rejection of the charter by the Netherlands, like France one of the six countries that founded the bloc in the 1950s, could deliver a fatal blow to the treaty designed to make the EU run better following its enlargement from 15 to 25 states.

It also casts doubt on the EU's hopes for a more muscular foreign policy and its plans to expand further to the Western Balkans, Turkey and Ukraine, and raises questions about its appetite for economic reform amid mounting global competition.

The euro fell to its lowest level against the dollar for more than seven months on Wednesday and has lost almost 10 percent since March when polls turned negative on the treaty, which needs the approval of all members to go into force.

Most EU leaders have said ratification of the charter should continue as planned until late 2006 to allow all countries to have had their say, but diplomats say that is just a holding position until an EU summit on June 16-17.

WILL TREATY SURVIVE?

The Latvian parliament is expected to approve the treaty with a big majority on Thursday, meaning 10 members representing almost half the EU's 454 million citizens will have approved it.

British Prime Minister Tony Blair hinted after the French vote that the Dutch result could help determine whether he calls off a referendum next year in his euroskeptic country.

If EU leaders do halt ratification, analysts warn the bloc could sink into an extended period of introspection with repeat referendums unlikely given the strength of French and Dutch opposition and renegotiation of the charter also difficult.

While most Dutch were hostile to the constitution, they seemed keen to make their voice heard in the country's first national referendum, with turnout seen much higher than the 39.1 percent who voted in European Parliament elections last year.

The Dutch vote is not legally binding, but lawmakers say they will be guided by it if turnout is over 30 percent.

Interim results with about half the vote counted are due at around 2000 GMT, with a final outcome expected at 2400 GMT.

Opposition has been driven by a range of issues including concerns about a loss of control over immigration, opposition to Turkey's bid to join the bloc and concerns Brussels might undermine liberal Dutch policies on gay marriage and abortion.

Many Dutch feel short-changed by the introduction of the euro, are concerned about losing clout in a continually expanding EU and are unhappy with being the biggest contributors per head to the bloc's multi-billion euro budget.

The referendum was also seen as a vote of no confidence in the center-right government of Prime Minister Jan Peter Balkenende, which has pushed through budget cuts and welfare reforms despite a stagnant economy and rising unemployment.

But domestic fallout from a Dutch "Nee" is seen as limited, unlike the French "Non," which led to the prime minister's exit. Balkenende has insisted he will not quit.



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