European Union leaders voiced relief at the deal reached early today on a treaty to reform the 27-nation bloc's institutions, replacing a defunct constitution and ending a two-year crisis of confidence in Europe's future.
"It's an important page in the history of Europe. Europe is now stronger, more confident and ready to face the challenges in the future," Portuguese prime minister Jose Socrates said after brokering agreement at an EU summit.
After their post-midnight deal, leaders hugged each other and toasted with champagne a treaty that will be signed on December 13th in Lisbon.
British prime minister Gordon Brown, who faces uproar at home over his refusal to put the treaty to a referendum, declined the champagne. For enthusiastic European integrationists, on the other hand, celebration was tinged with regret for the constitution rejected by French and Dutch voters in 2005.
German Chancellor Angela Merkel, who brokered the political mandate for the treaty in June, told reporters: "Certain items had to be taken out of the treaty but after what happened at the referendums we could not just go back with the same text. People would say that is not democratic."
This time, only Ireland is likely to hold a referendum.
Provided it is ratified by all 27 member states, the treaty will take effect in 2009 giving the EU a long-term president, a more powerful foreign policy chief, more democratic decision making and more say for the European and national parliaments.
French president Nicolas Sarkozy suggested former British prime minister Tony Blair or veteran Luxembourg Prime Minister Jean-Claude Juncker would make excellent candidates for the new president's job. He also hinted at endorsing Jose Manuel Barroso for a second term as president of the European Commission.
"With this treaty, Europe is showing that the European project is on the move ... We managed to get out of the blind alley we have been in," Portuguese Prime Minister Jose Socrates, the summit chairman, said.
In the final wrangling, Italy won one extra seat in the European Parliament, while Poland won a guarantee that a provision allowing small groups of states to delay EU decisions could only be overturned by unanimity, plus a permanent advocate-general's job at the European Court of Justice for a Pole.
Warsaw had threatened to delay the talks if its demands on new voting arrangements were not met but said its key demand had been met.
The EU has spent a decade debating how to reform its institutions to cope with its near doubling in size from 15 to 27 members, and with the emergence of challenges in foreign and defence policy, energy and climate change.