Mr President, as we approach the first European Council of the Italian presidency and assess the progress thus far, is the glass of prosecco that the presidency will offer next week half full or half empty? On the evidence of the inaugural meeting of the Intergovernmental Conference in Rome I fear it is half empty. When the Member States convene again to discuss Europe's draft constitution, they should recall the shambolic Nice Summit and reflect on the costs of failure. Poland and Spain should be reminded that their intransigence over the reform of voting weights in Council is perilous politics as well as poor mathematics. If the Nice arrangements were satisfactory, the Council would not have established a Convention in the first place. The system of majority voting agreed at Nice is unwieldy and unfair. To its credit, the Convention threw out the unsteady compromises of Nice and proposed a voting system which is fairer and more transparent. Last time I checked, the representatives of the Spanish and Polish Governments had signed up to the Convention's outcome: now they must respect its work. On other issues too, the hard bargaining has been done. The consensus crafted by the Convention will not be improved on in Rome. Unpick the substance of the draft Treaty and the IGC will drag on into 2004 and descend into diplomatic farce. Then Rome really will be the eternal city. When it comes to economic reform and the Stability Pact, the bubbles in the prosecco have long evaporated. France has yet to convince us that it takes its responsibilities seriously. La France désire-t-elle vraiment jouer le rôle du 'je-m'en-foutiste'? Il faut voir. While we understand the reluctance of some governments to confront France, a Stability Pact without teeth is a paper dragon breathing tinsel flames. The eight governments which have worked hard to play by the rules - often at considerable political cost - have every right to be dismayed that their larger neighbours take fiscal laxity so lightly. The Italian presidency's drive to enhance Europe's competitiveness at the European Council is welcome. But we need to move beyond bold declarations. To achieve better and simpler legislation we need proper consultation and business impact assessments. A level playing field for company take-overs is still frustratingly far away and we have much work to do to agree a viable framework for an integrated market in investment services before the European elections. My group welcomes this week's decision by finance ministers to refocus the growth initiative away from road and rail projects and towards investment in innovation which will help to close Europe's research deficit. In the field of Justice and Home Affairs, there is more sparkle in the Council's agenda. The balance which the seeks to ensure between tackling illegal migration and providing for a system of managed legal migration seems to be essentially there. We will support the Commission in its efforts to create a Border Management Agency. Europe's new eastern border will be one of the longest in the world: it is crucial that we pool our expertise in policing it properly. Sadly, the external agenda of the Union leaves us no cause for celebration. The failure of Cancún must redouble our determination to secure reform of the WTO and trading arrangements which help the world's poorest countries. Europe must insist on a central role for the United Nations in return for the internationalisation of the situation in Iraq. And the tragic events of the past week in the Middle East confirm the need for Europe and America to remain engaged. My group condemns unreservedly the suicide bombings in Haifa, but calls on Israel to abide by international law and act proportionately in its response. A new Constitution, a credible Stability Pact, a revitalised economy, a secure and just Europe in a more stable world: these would be the flavours of a truly vintage year: le auguro buona fortuna per la vendemmia. I too must apologise to Council and Commission for having to leave before the end of this debate. The rescheduling of this debate has caused me this embarrassment. (Applause)

Political group: ELDR