E.Europe sees EU honeymoon over after French vote

Last May ten mainly former communist countries in eastern Europe joined the EU after years of reforms to ready themselves for the rigours membership was to bring.

"The victory of the "No" camp means the end of a European honeymoon for Poland," said Pawel Swieboda, director at the Polish Foreign Ministry's European Union Department.

Slovenian Foreign Minister Dimitrij Rupel said: "In France, and not only in France, there is a prevailing mentality that it is better to say no than yes. That means closing the door.

"Instead of welcome we are saying leave us alone, we do not have time. We are facing restraint and caution."

Initial projections showed 55 to 56 percent of French voters rejected the new constitution, designed to make the enlarged EU run smoothly.

The rejection of the treaty is likely to stoke fears of slower integration, unnerving markets and upsetting politicians working hard to bring their countries up to EU-speed.

Both Latvia and Estonia said they would go ahead with ratification despite the French outcome. Latvia's parliament is to vote on the constitution on Thursday, while Estonia's lawmakers is expected to address it within the next month.


PALL OVER MARKETS

Currencies in eastern Europe have suffered in recent months from a pullout by global investors seeking lower risk possibilities.

Analysts said that with the French "Non" likely to plunge the EU into crisis, the possibly fatal blow to the pact will cast a pall over markets across the region when they open on Monday, though the rejection was already priced in by many.

"I think financial markets in Eastern Europe and Turkey will be somewhat rattled by the outcome of the French referendum," said Wike Groenenberg, head of emerging markets strategy, Citigroup London.

Analysts said that the Union's most recent entrants will remain focused on one of the biggest integration tasks left: adoption of euro, the EU's single currency which all seek to have as their own by the end of the decade.

But the rejection could impact those still on the outside looking in. Romania and Bulgaria have signed accession pacts aimed at entrance in 2007.

Though they would probably join anyway in 2007, further enlargement to the Western Balkans, Turkey and Ukraine could be thrown into doubt.

Romanian government spokeswoman Oana Marinescu expressed disappointment in the French vote outcome, but said she remained confident accession would not be untracked.

"Romania and Bulgaria's accession to the EU cannot be conditioned by the vote of any of the member states on the European constitution," she said.

"Romania and Bulgaria's accession treaty was negotiated and signed so that it can be adapted both to the Nice treaty and to the European constitution, when it will come into force."

Source: Reuters