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It all came down to which side would win over the bloc of black Democrats.
The new system — expected to come into force by 2013 — would apply all over the bloc, except for Denmark, which has the ability to opt out on justice cooperation.
Iraqiya won a narrow victory over the bloc led by Prime Minister Nuri Kamal al-Maliki — 91 seats to 89 — but has failed to rally enough support to have its leader be elected as prime minister.
With Germany's federal elections less than five months away, the two parties are competing to win over the bloc of older voters that has become one of the biggest and most powerful segments of the population — one that is likely to play a major role in deciding whether Angela Merkel is re-elected chancellor.
But the uncertainty the referendum result has unleashed over the bloc's future shape and direction has compounded a sense of long-held certainties fast evaporating.
But big divisions loom over the bloc's response to the current financial crisis, which has already forced Greece and Ireland to seek aid from the European Union and the International Monetary Fund.
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If governments failed at the rate that e-businesses have failed recently, the consequences would be disastrous.JOHN LARKINWashington, DCCanada's oppositionSIR In the 1997 Canadian election, the Reform party took over from the Bloc Quebecois as the main opposition, not from the Progressive Conservatives, as you say ("Alberta's advantage poses some questions for Canada", June 17th).
The EU hasn't officially commented on the referendum, but has clashed with Croatia over some of its other laws, including an extradition law that has prevented its citizens from being handed over to the bloc's other member states, which Croatia had to amend under pressure from Brussels.
As it is, President Demetris Christofias, a keen ally of the Russian president, Vladimir V. Putin, and the only Communist leader in the union, could prove an awkward public face when Cyprus takes over stewardship of the bloc.
Another came in the form of intense argument over how much money member states should hand over to the bloc for the next seven years.
A day earlier, lawmakers at the European Parliament agreed to give the central bank supervisory authority over some of the bloc's biggest banks.
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