EU clinches deal on Irish treaty vote: diplomats

(BRUSSELS) - Ireland secured Friday legal guarantees on sovereignty issues from European partners to pave the way for a second Irish referendum on the EU's reform treaty, the EU presidency confirmed.

"There is a full deal now on Irish guarantees," a spokesman for the Czech EU presidency said.

The guarantees affirm Ireland's military neutrality and taxation system, as well as its stance on social issues like abortion.

Irish voters rejected the Lisbon Treaty in a referendum a year ago.

Research found that people voted "no" then because of concerns of the military, tax and social issues and the Irish government has insisted on legal guarantees that the Lisbon Treaty would not affect these sovereign issues.

This agreement means Irish voters could return to the ballot boxes in September or October, and opinion polls suggest they will vote in favour of the package the second time round.

"We can confirm that a deal has been reached on legally binding guarantees and a protocol for Ireland at the summit," an Irish government source said on the second day and last day of an EU summit in Brussels.

Details of the deal were not immediately revealed, but the word "protocol" was key to the Irish government.

Irish Prime Minister Brian Cowen had arrived at the summit insisting on guarantees with "full treaty status" through a legal protocol.

British Prime Minister Gordon Brown had opposed a "protocol" and wanted a simple, though legally-binding, EU "decision", which would not force nations to ratify the text and potentially reopen the whole Lisbon debate in countries that have already approved it.

EU legal experts worked through the night to bridge the gap after the topic was pulled off the summit agenda on Thursday.

Under the deal the protocol would be attached to a future accession treaty, perhaps when Croatia joins the bloc in the years to come, and would need to be ratified in the member states, an EU diplomat said.

But the EU leaders agreed that and made explicit that "this protocol is specifically dealing with the situation in Ireland and doesn't affect the countries that have already ratified the treaty," which was enough to win Britain's backing, she added.

European Commission chief Jose Manuel Barroso voiced confidence that Irish voters would back the Lisbon Treaty next time.

"I'm especially pleased that we have agreed the Irish guarantees. This gives the Irish people all the guarantees they need," Barroso told journalists.

"It gives me all confidence we'll get a 'yes' vote at the Irish referendum."

The former "Celtic Tiger" economy -- boosted in part thanks to EU funding -- has been hard hit by the economic crisis and recent opinion polls suggest Ireland has become more willing to back the text.

The Lisbon Treaty, designed to streamline the bloc's decision-making, was a replacement for a planned EU constitution, which was scuppered by French and Dutch voters in 2005.

Only Ireland was constitutionally bound to put the treaty to a public vote. Almost all the 27 EU members have endorsed the treaty through votes in their national parliaments.

Only the Czech Republic and Poland must complete the technical ratification. A legal challenge is pending in Germany.

On the eve of the summit, eurosceptic Czech President Vaclav Klaus raised concerns of yet another hurdle by insisting that his country's parliament must ratify the Irish guarantees or he would refuse to approve the whole treaty.

The EU leaders also gave their blessing for Barroso to head the bloc's executive commission for a second term, but his nomination still faces a major hurdle at the European parliament.

The summit also granted Britain assurances that new pan-European financial authorities will not be able to force national governments to make emergency bank bailouts, according to draft summit conclusions.

Joining Washington in a drive to tighten financial supervision, EU leaders agreed in principle to set up three pan-Europe bodies to oversee banks, insurers and securities firms.