Prodi Seeks Powers to Give Eu Global Clout

Romano Prodi threw down a direct challenge to EU governments yesterday by demanding that the European commission be handed a bigger role in foreign policy to give the union a "single voice" on the world stage.

In an ambitious and almost certainly unrealistic bid for greater powers for the supranational body, the commission president also called for a formal role for eurozone finance ministers that would exclude Britain and other "outs" - Sweden and Denmark.

Calling for greater efforts to tackle immigration and asylum, he proposed an integrated European police force to fight terrorism and organised crime, an EU-wide tax and harmonisation of some aspects of criminal law.

Anticipating Eurosceptic fury, Mr Prodi insisted this was no blueprint for a "superstate" but rather for "a union of peoples and states ... able to protect citizens better and enhance their interests in areas where no country alone was powerful enough.

"This is our solution for governing democratically in a globalised world," he told the European parliament.

In London Conservative MPs leapt on the plan as proof that the commission had "blown the cover on Tony Blair's carefully orchestrated attempt" to play down fears of European integration.

But Downing Street and the Foreign Office went out of their way to be "very relaxed" about the document.

Mr Prodi submitted his proposals for a "supranational democracy" to the convention on the future of Europe, the body discussing the constitutional changes the EU needs when it expands from its current membership of 15 to 25 in 2004.

Billed as the commission's "overall vision for the EU of the future", the proposals have already angered Britain and France and even community-minded Germany has voiced doubts about their viability.

Some of the proposals, especially in the realm of economic government, will be supported by a majority of the 105-member convention run by Valéry Giscard d'Estaing, the former French president.

But others will be thrown out by the member states, which have made sure they have the last word when they draw up a new EU treaty, and will use their vetos to get their way.

With opinion polls showing most EU citizens deeply concerned about the mismatch between Europe's economic weight and its lack of diplomatic clout, Mr Prodi suggested that the union learn from its powerful position on trade and apply it to foreign policy.

"If Europe is to increase its influence on the world scene and be a credible partner for the United States ... it must speak with a single voice on all aspects of external relations," he told MEPs.

Under the current system, governments control foreign policy - though they have a high representative, Javier Solana, the former Nato secretary-general - while the commission's Chris Patten runs external relations.

Mr Prodi wants the two posts to be merged in the commission to avoid confusion, rivalry and inefficiency.

He called for enhanced economic policy coordination to provide the eurozone with a single voice in international economic and financial institutions. But Britain, France, Germany and Italy would be highly unlikely to surrender their places on the IMF and G7 group of big economic powers.

The commission gave a weighty nod towards concerns about the problem of "disconnect" between EU institutions and citizens, part of a wider issue of apathy and a sense that mainstream politicians are failing to address real concerns.

"Europe is now part and parcel of our citizens' daily lives and they want to better understand who does what in Europe, where responsibility lies and who can be called to account," Mr Prodi said.

Mr Prodi said the Eurogroup forum of eurozone finance ministers should become a decision-making body of member states which had adopted the euro. Britain, Sweden and Denmark would fiercely resist this.

The shadow foreign secretary, Michael Ancram, said the proposals contained "all the fundamental attributes of a foreign state. This is the Europe we have feared. This is the Europe Mr Blair has denied. This is the Europe we will fight to prevent," Mr Ancram protested as Tory and Liberal Democrat MPs taunted Mr Blair in the Commons over his indecision about Britain joining the euro.

Privately some ministers were horrified that the commission had bundled up its most "outlandish" proposals into one scheme.

Shaping the union's future

EC proposals to convention on the future of Europe:

</B> Constitution for enlarged EU of up to 25 members

·</B> Bigger role for EC in foreign policy to allow Europe to speak with single voice on world stage and narrow widening gap with US. Foreign policy chief Javier Solana to be brought into commission and role merged with external affairs commissioner Chris Patten

·</B> End to national vetos and opt-outs, such as UK's from economic and monetary union

·</B> More coordinated EU action on asylum, immigration and combating terrorrism and organised crime. Common border controls and closer police cooperation

·</B> Reforms vital to avoid institutional gridlock when 10 mainly east European candidates join in 2004

·</B> Formal decision-making powers for Eurogroup forum of 12 eurozone finance ministers, currently subordinate to Ecofin council of all 15 ministers, including "outs" Britain, Sweden and Denmark

·</B> Commission to have power to recommend action on national budget deficits that can only be overturned by unanimous vote of all governments

·</B> Commission to represent the eurozone on world stage