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DATE=10/14/00

TYPE=CORRESPONDENT REPORT

TITLE=EU / SUMMIT (L-ONLY)

NUMBER=2-267938

BYLINE=DOUGLAS BAKSHIAN

DATELINE=LUXEMBOURG

CONTENT=

VOICED AT:

INTRO: European Union leaders have thrown their weight behind new Yugoslav President Vojislav Kostunica, promising him more than 170-million dollars in badly needed aid. The move came at the end of a two-day European summit. Douglas Bakshian reports for V-O-A from Luxembourg.

TEXT: The 15 E-U leaders meeting in Biarritz, France, held a working lunch with the new Yugoslav President and promised that fresh European money would be available to help his country.

British Prime Minister Tony Blair said the E-U wants to extend the hand of friendship to Vojislav Kostunica and his people.

Mr. Kostunica said the E-U aid would be used to ease Yugoslavia's most pressing needs. Yugoslavia's economy has been crushed in the wake of last year's NATO bombing campaign and economic sanctions that had targeted the rule of Slobodan Milosovic.

E-U spokesman Norbert Schweiger says European leaders want to help stabilize democracy in Yugoslavia through political and financial support.

/// SCHWEIGER ACT ///

It is clearly first, a political salute (greeting) which has been given, and to this end they will need also to use financial tools.

/// END ACT ///

On another topic, E-U prime ministers reviewed progress on internal reforms that will be needed to allow the E-U to expand and admit as many as 13 more countries doubling the size of the organization.

Currently major issues - involving defense, security or key economic matters - must be approved by a unanimous vote. Mr. Schweiger says that in an enlarged E-U, this might paralyze business, so there are plans to require only a majority vote on many matters.

/// SCHWEIGER 2ND ACT ///

If you don't have the possibility of getting to, in main areas, to decisions by majority voting, there's a risk of things being blocked.

/// END 2ND ACT ///

The two-day summit also agreed on a charter of fundamental rights for European citizens. This is intended to move the E-U from an economic union to a political one but observers say it is unlikely the charter will become a legally binding document. (Signed)

NEB/DB/ALW/PLM