EUROPEAN COUNCIL: EU LEADERS' UNITED ON IRAQ AND LISBON BUT NOT MILK QUOTAS.

Iraq: EU united in peace not war.

Despite the continuing divisions over the launch of hostilities against Iraq, the Heads of State and Government managed to agree a joint statement which emphasised the role of the United Nations in dealing with post-conflict Iraq and respect for the country's territorial integrity and committed the EU to dealing with humanitarian problems and any refugee flows (see separate article, Section V). Many EU leaders were keen to stress the degree of common ground despite the differences of opinion.

French President Jacques Chirac praised the achievements of the Greek Presidency in forging an agreement. "We avoided debate on past strategies and we able to concentrate on the future". He said he felt no bitterness towards UK Premier Tony Blair over the question of military action and insisted that they would continue to work together to "advance Europe", a view with which the UK Premier agreed. However, he sent a clear warning to the UK and US that France would not approve a new United Nations' Resolution which gave them the right to run Iraq after the end of hostilities. "France will not accept a Resolution which would legitimate the belligerents and give the US and the UK the right to administer Iraq."

The British Prime Minister said that although there were differences of opinion "it was important that we were able to come together on the basis of the agreed text". Tony Blair said that there should be a period of reflection on the EU-US relationship but stated that, for him, working together with the US was essential to success in achieving common objectives.

German Chancellor Gerhard Schroder said that a lot had to be done to "solve problems and resolve differences" but he said the EU would improve foreign policy and ESDP (European Security and Defence Policy). In particular he welcomed a suggestion by Belgian Prime Minister Guy Verhofstadt for a Franco-German-Belgian Summit on defence. "This goes in the right direction and is in line with the Franco-German contribution to the Convention."

Lisbon Strategy.

The package of Lisbon measures for economic and social modernisation proved much less controversial and was approved quickly on Friday morning on the basis of the work by other Councils, most importantly the March 18-19 General Affairs and External Relations session and the March 20 EcoFin Council. Greek Prime Minister and Council President Costas Simitis said that the agreement showed that it had been right...