Leaders of the European Union (EU) reached an agreement early Saturday on a draft new EU treaty, after tough and lengthy negotiations and compromises in certain areas, German Chancellor Angela Merkel announced after some 20 hours of talks.

"What counts for me and for us is that we're moving out of stoppage and reflection. We have a new mandate of the Intergovernmental Conference (IGC)," Merkel told reporters after the conclusion of the EU summit, which was prolonged into its third day after little progress was reported during talks on Thursday and Friday.

"We are very very satisfied with what we achieved this morning," said a jubilant Merkel.

The new EU treaty will replace the defunct EU constitution which was rejected by French and Dutch voters two years ago. It is expected to come into force in 2009 after ratification by member states, said Merkel.

Details of the new treaty will be discussed at the IGC before the end of 2007 under the Portuguese EU presidency, which will start on July 1, said Merkel.

She added that the new treaty is not of a constitutional character, but is up to the member states to decide whether to approve it by referendum.

The ratification process of the EU constitution was stalled after French and Dutch voters rejected it in referendums, plunging the bloc into a constitutional crisis.

Merkel had been desperate to try to seek an agreement on the outlines of a new EU treaty before Germany's rotating EU presidency expires on June 30.

The breakthrough was secured after Poland finally accepted a compromise proposal on the voting system.

"We're stretched to the limit," Merkel spoke of the difficulties in negotiations.

According to her, the current voting system will not be changed until 2014 when the "double majority" voting system will be introduced, with a three-year transitional period until the beginning of 2017.

Merkel also announced that a new post for permanent president of the European Council, EU's highest decision-making body, will be set up, while the current system of rotating Council presidency will be scrapped.

There will also be a post of the EU High Representative for Foreign Affairs and Security Policy, who will also act as vice-chairman of the European Commission and chair meetings of EU foreign ministers.

European Commission President Jose Manuel Barroso, also at the press conference, said that with the latest success, "the EU is moving in the right direction" and on "an expression of solidarity."

(Xinhua News Agency June 23, 2007)