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DRUDGE REPORT FLASH 2004 "EUROPEAN UNION COULD 'SPLIT' OVER CONSTITUTION:

THE EUROPEAN Union could be destroyed by divisions over plans for a new constitution, the world's most influential business journal declared today.

In a warning to Europe's leaders, The Economist said it was 'probable' the EU would split into rival camps if one or more countries votes against the constitution.

But it argued that such a collapse would actually be a good thing with Britain and other countries able to choose how much - or how little - they wanted to be involved.

'These referendums could throw the EU into the sort of crisis that puts the integration process into reverse or even causes the EU to split,' warned the magazine.

'The EU may indeed split. But a split need not be a dis-aster. It could lead to a multi-layered EU in which different countries adopt different levels of political integration and experiment with different economic models.'

However, the magazine added that there was also the potential for a 'darker' out-come. 'A split could cause Europe once again to divide into rival power blocks. 'That could threaten what most agree is the Union's central achievement - peace in Europe.'"

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