Prodi seeks more powers

Romano Prodi envisages a smaller role for nation states

European Commission President Romano Prodi has called for greater powers for the EU executive, in his latest contribution to the vigorous debate over the future of the union.

Speaking in Paris a day after French Prime Minister Lionel Jospin set out his vision of an EU still led by nation states, Mr Prodi said the commission should be more involved in EU foreign policy and play a bigger role as a co-ordinator of economic policy.

Jospin: Called for a federation of nation states

Although the European Central Bank was independent, he said, it needed to be complemented by a body - the commission - with an overall vision of the economic policy directions of the EU and its members.

And while complimenting the work of Javier Solana, the EU's high representative on foreign policy, he added "he would be much more effective yet if he was also a member of the Commission".

Mr Solana is currently answerable directly to the EU's member states.

Eurotax

Mr Prodi also said there should be a new tax to pay the European Union's running costs of $60bn per year, to provide a direct link between citizens and the EU.

A better understanding of how the EU raises money and what it is spent on should help diminish public dissatisfaction, the commission believes.

Currently the EU is funded by national contributions.

The commission says that Mr Prodi's speech was planned months ago, and that it was a coincidence that it came immediately after Mr Jospin's.

Justice

In calling for a beefed-up role for the European Commission, he echoes proposals made by German Chancellor Gerhard Schroeder for a fully-fledged European government.

Schroeder: Wants major reforms

However, unlike Mr Schroeder, Mr Prodi said the EU should concentrate on using its existing institutions better rather than shaking up the entire system.

He said it was necessary to take a flexible case-by-case approach to a division of responsibilities between EU bodies and national governments, with the European Court of Justice ruling on conflicts.

In justice and home affairs, Mr Prodi suggested the European Parliament and the European Court could play a bigger role, taking over powers from the nation states.

Juxtaposed states

He said the EU's only "lasting constructions" had been founded on the "community method" rather than on inter-governmentalism.

He said the EU's strength was that it was a unique compromise between a "superstate" and "juxtaposed states".

He also rejected the idea, put forward in different forms by the leaders of Germany, France and the UK, for a second chamber of the European Parliament to oversee the use of EU powers.