Prodi Backs Down on Farm Reform

Romano Prodi, the president of the European commission, was yesterday forced to distance himself from a report he ordered which called for a radical overhaul of how the EU spends its €100bn (£70.3bn) budget.

Mr Prodi faced a noisy rebellion by several members of the 20-strong executive over a study which advised Brussels to slash spending on agriculture and divert cash to research to promote growth.

The report, by eight economists, also recommended that €34bn worth of regional funds be switched to the new eastern European member states, meaning parts of Spain and Greece would not receive cash.

This latest episode added to the growing impression that Mr Prodi has become a lame duck well before his term ends in winter 2004.

Michael Barnier, the French commissioner in charge of regional funds, dismissed the report's proposal as "senseless" and "unrealistic".

Pedro Solbes, the Spaniard in charges of economic affairs, took issue with a call to ease the terms of the stability pact which requires eurozone states to balance their budgets by 2004, and calls for sanctions if deficits rise above 3% of GDP before then.

The issue is sensitive because France and Germany are both in danger of breaching the limits.

It was the second time in several months that Mr Prodi had angered his colleagues over a report ordered by the commission which did not reflect its collective view. His spokesman said the report was meant to "provoke lively debate".