Leader will step down if vote is no

LUXEMBOURG, June 3 (UPI) -- Luxembourg Prime Minister Jean-Claude Juncker says he will resign if his country rejects the European Union constitution.

"It's a matter of basic decency toward the Luxembourgeois voters," said Juncker, who currently holds the rotating EU presidency.

Luxembourg is scheduled to hold a referendum on the constitution July 10. The week, both France and the Netherlands rejected the European charter by large margins.

Juncker noted those votes had weakened the euro, but added the bloc's common currency was still overvalued compared to the dollar.

"What helps the economy for the moment could in the long term become a burden," he said. "I think the euro is overvalued in relation to the dollar."

Spain approved the constitution earlier this year by referendum. In addition, nine other European countries have so far approved the treaty by parliamentary vote. Luxembourg has long been considered a sure deal to approve the charter by referendum, but a new poll finds the "no" vote climbing to 41 percent, compared to 24 percent in October 2004.