Brussels paymaster Schroder to vent his anger at Prodi

Stephen Castle
Tuesday 30 April 2002 00:00 BST
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After months of sniping at the European Commission, the German Chancellor, Gerhard Schröder, finally took his litany of complaints to Brussels last night in what was billed as a key showdown over who runs Europe.

A host of policy differences was on the agenda as Mr Schröder was due to meet the European Commission president, Romano Prodi, and four other Commissioners.

A change of tone has emanated from the German government, the biggest EU nation and, traditionally, the most loyal supporter of European integration. With elections due in September, and Mr Schröder facing a challenge from a right-wing contender who is seen as a mild Eurosceptic, the Chancellor has hardened his rhetoric against Brussels.

Berlin has attacked a variety of recent decisions and proposals from the Commission, including its plan to issue a formal reprimand to Germany over its budget deficit. Mr Schröder is also unhappy about moves to loosen the grip of car dealerships – making it easier for people to buy the cheapest cars – which he believes will hit German car-makers hard.

Berlin is angry about attempts by Brussels to crack down on state subsidies to coal mines and to transfer funds to the impoverished east.

Many of his objections are based around competition or industrial policy, and represent a view that the free-market principles of the internal market are being applied to the detriment of industrial producers in the German heartlands. One key item likely to have been discussed was plans for a directive which, Germany fears, will reduce its ability to prevent hostile takeovers from abroad.

One official argued yesterday that the list of differences indicated that the change in German thinking was more than a pre-election tactic. He said: "There is certainly a trend, a noticeable change in German politics towards being more assertive."

Last night's meeting, which included Mario Monti, the Competition Commissioner; Margot Wallström, Environment Commissioner; Fritz Bolkestein, Commissioner for the Internal Market, and Erkki Liikanen, Industry Commissioner, was not likely to deliver concrete concessions to Berlin.

The Commission, which is supposed to be neutral, will find it difficult to amend proposals that are already on the table without looking as if it has caved in. It is already being accused of bowing to pressure from Spain to postpone launching plans to reform the Common Fisheries Policy.

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