"US diplomats have suggested to us they do not like certain aspects of the Franco-German plan," a senior European diplomat told the Financial Times. "The Americans discreetly question how this reinvigorated alliance will change Europe in a way that could completely redefine transatlantic relations."

Last week the US defence secretary, Donald Rumsfeld, described France and Germany as part of "the old Europe", it seems that he is worried about the potential of the Franco-German axis. "It is not really the 'old Europe' that worries Rumsfeld. It is the 'new Europe' that France and Germany are creating," commented an EU military officer according to the Financial Times.

According to the Financial Times, Washington dislikes the Franco-German proposal to set up a defence procurement agency. We are trying to improve our capabilities and improve co-ordination, yet Washington really worries about the defence procurement agency. Perhaps it would lose out on contracts, said an EU military officer.

Relations with candidate countries

Another aspect to the Iraq issue is the relationship between the EU and the candidate countries. The future member states are not completely sure where their loyalties lie. Bulgaria, a non-permanent member of the Security Council, has indicated that it could support an American-led war against Iraq. Similarly, Poland has been brushing up its transatlantic credentials. According to Le Figaro, the Polish foreign minister, has said that a second UN resolution on Iraq is not indispensable and indicated support for possible unilateral action by the US.

Hungary, reports the Financial Times, is the most involved of any country in the region in the war build-up. The Socialist-led coalition government has given the US permission to train up to 3,000 Iraqi opposition activists at an airbase at Taszar, south-west Hungary.