France, Britain agree EU institution deal-Sarkozy

HEILIGENDAMM, Germany, June 7 (Reuters) French President Nicolas Sarkozy and British Prime Minister Tony Blair have agreed on a framework for a simplified treaty to reform Europe's institutions, Sarkozy said today.

Sarkozy has been pushing for a simplified treaty, which countries could ratify without consulting voters, to streamline decision-making in the European Union after French and Dutch voters rejected a European constitution in referendums in 2005.

''Tony Blair and I have just agreed on what might be the framework for a simplified treaty. That is quite something ...

We agreed that it should be a new treaty and not a small constitution,'' Sarkozy told reporters after meeting Blair on the sidelines of a Group of Eight meeting in Heiligendamm, Germany.

He added that he had agreed with Blair on how to tackle the thorny issue of fundamental rights that were enshrined in the old constitution, but did not go into details.

''I told the French people that we can't stay put with a Europe that is motionless, we can't stay with a Europe that is blocked, we can't stay with a Europe that does not have institutions,'' Sarkozy added.

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