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'No plan B' for EU Constitution

LONDON, May 20 (UPI) -- Europe has "no plan B" if the French or Dutch reject the European Constitution, European Commission President Jose Manuel Barroso said Friday.

Speaking at the London School of Economics after a meeting with British Prime Minister Tony Blair, Barroso said a positive result in the French and Dutch referendums is "crucial" and a no vote would be perceived externally as "a failure for Europe."

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"I believe it is crucial for France but also for Europe ... And we do not have a plan B," he said.

Barroso declined to comment on whether Britain should still hold a referendum in the event of a French or Dutch rejection. Government ministers have been unable to dispel confusion over the issue in recent days.

In comments that are likely to further fuel the row over Britain's EU rebate, Barroso said he believes it is no longer justified.

Margaret Thatcher secured the rebate in 1984. It was intended to make up the shortfall between Britain's contributions to the EU and what it got back in subsidies.

But Barroso said that although there were "good reasons" for the rebate when it had been granted, the situation had changed and Britain was now "much more prosperous."

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