Although the Isle of Man is not part of the European Union, it has a special relationship, known as Protocol 3, with it which allws for the free movement of goods and people.

Speaking on Friday, Mr Corkhill announced that:

"Whatever the outcome of this latest EU meeting, it is vital that the Isle of Man continues to keep a close eye on European developments to ensure our interests are not infringed." He continued:

"The Manx Government's approach to the EU Constitution issue was set out in a Council of Ministers report to Tynwald in October this year. That report concluded that the proposed constitution was not expected to affect the Island's position, but that we must maintain a careful watch on the progress of the initiative."

One proposal raised during discussions on the proposed constitution which was of particular concern to the Island was a change suggested by the Netherlands to the relationship between EU member states and their dependencies, which, although not aimed at the Isle of Man, would have allowed an amendment to the Protocol 3 arrangement to be made at European Council level rather than at an Inter-Governmental Conference.

Mr Corkhill pointed out that the Island's vigilance on this issue had caused any reference to the Crown Dependencies to be removed from the proposal.

Meanwhile, speaking following the collapse of the talks, incoming head of the EU presidency, Irish premier Bertie Ahern suggested that plans for an EU constitution are likely to be shelved, at least temporarily.

"There's not enough political will to find an agreement," he observed, adding that: "It requires time to think out the issues more fully. This is a huge project, a fundamental change for the whole of Europe."