Merkel says still problems in EU treaty talks

BRUSSELS, June 22 (Reuters) German Chancellor Angela Merkel said today there were still problems to be solved on a reform treaty for the European Union but she was working hard and everyone was doing their best.

Arriving for the second day of a crucial summit of the 27-nation bloc, intended to launch negotiations on a treaty to replace the defunct EU constitution, she told reporters: ''We're working hard, the problems are not yet solved but everyone is trying.'' Merkel was to meet Polish President Lech Kaczynski at the start of a long day of bilateral negotiations in the search for a compromise.

She said she would also meet separately with the leaders of Britain, the Netherlands and the Czech Republic, all of which have problems with the proposed treaty, meant to replace the constitution rejected by French and Dutch voters in 2005.

Reuters KK GC1246