Ireland rejects Lisbon Treaty in referendum, deals blow to the EU

With 38 of 43 constituencies counted after a referendum Thursday, 53.7 percent of voters had rejected the Lisbon treaty, designed to replace the EU constitution after it was torpedoed by French and Dutch voters three years ago.    �

"The Lisbon treaty is finished," said Sinn Fein leader Gerry Adams, whose Republican movement was the only one in parliament to campaign against the EU treaty.

"It looks like this will be a no vote," the AFP quoted Justice Minister Dermot Ahern as saying, calling the vote "disappointing" but conceding: "For a myriad of reasons, the people have spoken."

The Netherlands, which rejected the EU constitution three years ago, will continue ratifying the Lisbon treaty despite its apparent rejection by Ireland, the AFP quoted on Friday the Prime Minister Jan Peter Balkenende.

The Dutch lower house of parliament approved ratification of the treaty on June 5. The first chamber is expected to follow suit in mid-July. It will then be signed by the Queen.

Early indications in vote counting in Ireland's crunch EU reform treaty referendum show that the "Yes" campaign is "in some difficulty," public broadcaster RTE previously said.

The results are "not looking good" for the "Yes" campaign, Europe Minister Dick Roche told AFP. "From what I hear it is not looking good," he said after the RTE state broadcaster reported that the "Yes" votes support was "in difficulty" following the referendum Thursday, which is being watched anxiously by leaders across the European Union.

Roche also said the broad picture was that in working class urban areas and in rural areas, the "No" vote was doing well, while the picture was better for the "Yes" vote in middle class urban areas.

Turnout was in the mid-40s in percentage terms, RTE added, which had put the figure at 40 percent late Thursday. In general, a lower turnout is thought to benefit the "No" vote, according to experts.

The euro fell to its lowest in over a month against the dollar after the first reports suggesting a "No" victory, which could doom the entire EU reform project. European governments say there is no "plan B".

Ireland is the only EU member country subjecting the treaty of Lisbon to a popular national vote. All others are ratifying the document through their national governments.

Ireland's electoral count center expects to announce the national result Friday afternoon. Analysts say the result from Thursday's referendum is still looking too close to call.

Ireland rejected the first Nice Treaty in 2001, a second referendum was held that eventually saw the proposals passed. This time around, Brian Cowen, the Irish Prime Minister, also said that there is no “plan B” should the Lisbon treaty fall at the polls.

"NO LISBON TREATY"

"If the Irish people decide to reject the treaty of Lisbon, naturally, there will be no treaty of Lisbon," French Prime Minister Francois Fillon said late on Thursday.

The treaty, intended to make the EU stronger and more effective, had the backing of all the main political parties in Ireland, a country that has prospered from its EU membership.

But while the country ranks in surveys as one of the EU's most pro-European states, opponents say the treaty reduces small countries' clout and gives Brussels new foreign and defense policy powers that undermine Ireland's historic neutrality.

The treaty envisages a long-term president of the European Council of EU leaders, a stronger foreign policy chief and a mutual defense pact, and changes the rules for decision making.

Fourteen countries have already ratified the treaty in their national parliaments. The treaty is due to come into force on Jan. 1 if all nations ratify it.