EU leaders to put brave face on treaty impasse

By Mark John

BRUSSELS (Reuters) - European leaders will struggle on Thursday to put an EU reform treaty back on track after Ireland's "No" vote, but will seek to salvage the bloc's dented image by talking up possible action on rising fuel prices.

Last week's resounding rejection by Irish voters of a treaty designed to prevent gridlock in EU policy has cast a pall over a two-day summit originally intended to point the bloc towards a new, more confident future.

With all 27 EU members required to endorse the Lisbon Treaty before it can see the light of day, the pact is now unlikely to take effect on January 1 next year as planned and could even face the same fate as the defunct EU constitution it was to replace.

Britain's parliament rubber-stamped the treaty late on Wednesday, and most of the other eight countries still to endorse it vowed to follow suit as part of a concerted effort to keep it alive.

Yet Ireland says it will not be bullied into a fast decision on options such as a risky second vote, and diplomats believe the summit can at best merely sketch out a timeline for rescue efforts in the months ahead.

"There won't be any solution to Ireland at this summit," said a German government source, while adding that sooner or later Ireland would have to come forward with proposals.

"The Irish have said 'No'. But simply saying 'No' is not enough -- they also have to say what they do want."

Another diplomat suggested a new summit in October could be the chance for Ireland to present a "wish-list" of what it needs to persuade voters to go back to the ballot boxes.