Despite their differences over the military action against Iraq, he said it was important that Britain was closely involved in bringing the European Union closer together.

Germany fiercely opposed the war, while Britain has been the United States' closest political and military ally in the conflict.

"No one can and should be excluded" from shaping the common EU defence and security policy, Schroeder said in a speech to parliament, envisaging a day when EU soldiers would stand alongside UN peacekeepers.

"That is why it is especially important that Britain, which in the past has always sent important signals on European defence and security policy, is closely involved in this process," he said.

France and Germany remained the motor of European integration, he insisted, saying their cooperation -- which included joining forces to oppose the war on Iraq -- was "one of the few positive developments of the current situation."

But in another specific refeference to London, Schroeder added: "Without comprehensive cooperation with Britain and other members of the common Europe, we will not be able to bear the international responsibility that is rightly expected of us."

The chancellor said one of the main tasks was to enhance Europe's military capability so its troops could join in conflict prevention and peacekeeping -- but without allowing an EU force to become a world's "policeman."

WAR.WIRE