Watson (ELDR). – Mr President, Liberals in this House expected rather more from the presidency of a country with a proud European tradition. In six short months, the presidency has conspired to undermine the Stability Pact, has shown contempt for the European Union's policy towards Russia and offended Canada.

The President-in-Office has treated us to a 40-minute catalogue of the achievements of his term of office. Yet it is hard to escape the conclusion that this presidency and IGC have been a personal failure for the President of the European Council. The 'piece of paper' in Mr Berlusconi's pocket turned out to be a gelato-stained napkin with a few bad jokes scribbled on it. The President came to the IGC poorly prepared; he ignored the warnings of this House that holding back compromise proposals would produce this kind of stalemate.
(Applause)

While the Americans were digging Saddam Hussein out of a hole in Iraq to global acclaim, our leaders were digging themselves into a hole in Brussels.

A successful summit needed two things: political will on the part of the major countries, and skilful diplomatic leadership. It showed neither.

This IGC was not fated to fail - it chose to. Five countries walked away from an agreement which everybody needed but none of them wanted enough.

Yes, a delayed deal is better than a bad one. But the problem with postponing a decision by kicking it into the long grass is that you might not find it again. Especially with a crowded agenda ahead which includes negotiations on the next financial perspectives, talks on Turkish membership and elections in Spain, Britain and Italy.

So after a short post-mortem, the IGC must resume and must conclude its work under the Irish presidency. The Irish have Mr Ahern, one of Europe's most seasoned negotiators, and Mr Cox, the President of our own House, whose joy at the Charlemagne Prize we share. It may be possible to relaunch the European Union. Our first Constitution deserves public debate and endorsement, and that requires a Treaty before the European elections in June 2004.

I would like to underline the extent of the concern felt by Liberal Democrats and Reformers in this House and beyond and our feeling that the actions of the larger Member States are plunging the European Union into a crisis which could endanger the democratic nature of our Union.

The summit conclusions are also a disappointment to us. There is nothing on Guantanamo Bay, despite the explicit demand of this House that our leaders should uphold the rights of the detainees. On Russia, the conclusions scandalously make no reference to elections which the OSCE called 'a regression in the democratisation process'.
(Applause)

The decision to bring the People's Republic of China into the Galileo programme seems to have encouraged talk of the lifting of the European embargo on selling arms to the world's only significant remaining Communist dictatorship.
(Applause)

On all these issues, the Council behaved as if it is ashamed of our values - or ignorant of them altogether.

At your press conference after the summit, President-in-Office, you said that but for the IGC, your presidency would be remembered as 'the most glorious of recent years'. Yet agreement on the five issues mentioned by the President of the Commission represents a meagre return on a presidency in which such high hopes were invested. If this was a glorious success, I would be fascinated to know your definition of a failure. You set your presidency the target of a Constitution by Christmas. By your own standards, you have failed.
(Loud and sustained applause from the Centre and Left)