Duitse bondskanselier Merkel pessimistisch over Grondwet-vooruitgang in 2007 (en)

German chancellor Angela Merkel has played down expectations that next year's German EU presidency will bring about a revival of the EU constitution, while pleading for "less Europe" in terms of over-regulation from Brussels.

In a Europe Day speech on Tuesday (9 May) the chancellor said that the union should not "rush" in trying to revive the frozen charter.

"It is right not to rush now, but to watch developments calmly and explore the possibilities of one day putting in place such a constitutional treaty," Ms Merkel said, according to press reports.

"Waiting does not mean letting it slowly go to sleep, but finding the correct time to act," she added.

The comments of Ms Merkel, a staunch supporter of the constitution, are notably less ambitious than earlier signals from Berlin which had pointed at the constitution being one of the main items at the 2007 German presidency agenda.

Last autumn's coalition treaty of the Merkel government stated "We pledge to continue the ratification of the European constitutional treaty after the first half of 2006 and to give new impulses to [its ratification] under the German presidency in the first half of 2007."

The European Commission hopes that 2007 will be a breakthrough year, urging EU leaders to agree to a declaration on the EU's goals and values as a first concrete step to ending the bloc's constitutional impasse.

On top of this, France and the Netherlands which rejected the constitution in popular referendums last year will hold elections in 2007, with constitution supporters hoping that a change of political leadership will boost the chances for a revival of the charter.

In her speech, which came ahead of a major EU policy address to the German parliament on Thursday, the German chancellor also attacked over-regulation and bureaucracy from the EU institutions.

She indicated that the German presidency will prioritise the scrapping of superfluous legislation and red tape, a process which is also being championed by European Commission president Jose Manuel Barroso.

"Less Europe can mean more," she said, explaining that Europe would be able to better concentrate on core tasks when removing unnecessary laws.

The German leader also held talks with Finnish prime minister Matti Vanhanen, which revealed a rift between the upcoming Finnish and German presidencies on EU enlargement.

Mr Vanhanen, whose country will take over the helm of the union in July this year, spoke out against setting fixed borders of the bloc.

He told German media that "Every European country that shares our values has the right to membership," adding "20 years ago, nobody could have imagined today's EU."

But Ms Merkel said "We should clearly say where the borders of Europe lie," echoing French and Dutch calls for a break in EU expansion.