EU Faces Crisis - Markets Will Tell the Story!

International News Article | Reuters.com: "PARIS (Reuters) - France overwhelmingly rejected the European Union constitution on Sunday, pitching the EU deep into crisis and dealing a potentially fatal blow to a charter designed to make the enlarged bloc run smoothly.

EU leaders said after a referendum 'no' vote that the treaty was not dead and member states should continue the ratification process. But British Foreign Secretary Jack Straw said the rejection raised profound questions about the future of the EU.

The heavy defeat dreaded by EU leaders could weaken France in the 25-member bloc, stall European integration and unsettle some financial markets. It also wounds President Jacques Chirac two years before presidential and parliamentary elections.

'The French people have given a huge smack in the face to an entire system that has the nerve to tell us what to think,' said nationalist French politician Philippe de Villiers, a leading opponent of the charter. 'The constitution is no more.'

Chirac swiftly conceded defeat in a televised address to the nation as the 'No' camp celebrated a crushing victory with about 55 percent of votes to 45 percent and hinted that he might respond by dismissing his unpopular prime minister.

Such a resounding defeat in a country that has been a key pillar of the EU reduced the chances of a repeat vote on the treaty, which is intended to make EU decision-making easier and requires the backing of all member states to go into force." More...

These developments could signal the beginning of the end to European Union. France's, more specifically Chirac's, dream of political and social dominace on the European landscape is now a nightmare. Jacgues... see if the UN can bail you out of this one !