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PAOLA BUONADONNA: This mild-mannered university
professor taking a stroll with his wife is one of the most powerful politicians
in Europe. When he was appointed to head the European Commission in Brussels
last September Romano Prodi had a sparkling reputation.
He had brought Italy into
the Euro zone during his time as Prime Minister and had been personally
picked by the main governments in Europe including Britain, as the man
who would resurrect the reputation of the Brussels executive.
The previous President,
Jacques Santer, and his commissioners had just resigned amid accusations
of financial mismanagement, nepotism and corruption.
I met Romano Prodi in
his home town of Bologna and I asked him if he had been intimidated by
the job he inherited from Mr Santer.
ROMANO PRODI: If you consider which were
the relations between the Commission and the governments when I arrived
in Brussels you know that was a desperate situation. You know I knew that
the job was difficult. I am not surprised you know because to keep countries
with people and bureaucracy together you know and to try to show to have
one coherent strategy is not easy.
BUONADONNA: The Brussels press core is
the biggest in the world - every week journalists from all over Europe
gather to quiz commission spokesmen in this briefing room. Nine months
into his tenure Mr Prodi's leadership is under intense scrutiny.
Europe faces huge challenges
- as it prepares to welcome new member countries and to reform its institutions.
It's vital for Romano Prodi to show that he is the right man for the job
and not just a last-minute compromise. But the affable persona which made
him the darling of the press at the beginning of his journey has now been
turned against him. He's been criticised for a series of diplomatic blunders,
for unguarded comments about the future of Europe and for mismanaging his
relations with the media.
PRODI: If you want to change you
have to make people unhappy you know. And the media they are merely listening
to people who have been made unhappy by my first actions you know so this
is life you know. But you know I didn't accept, accept this commitment
in order to be popular.
BUONADONNA: Another criticism is that you
made some diplomatic mistakes early on such as inviting Gadaffi to Brussels.
PRODI: Without giving up any principle,
I said why we don't start talking. And then had such a tremendous negative
reaction. And then when I went to Cairo for the meeting of African and
European leader all the European Prime Minister were queuing in front of
Gadaffi you know. I had to wait hours to meet Gadaffi because my former
colleagues were meeting him you know, so it was a mistake or it was some
forward looking idea.
BUONADONNA: It's 8 am, every week Prodi
meets with his closest advisers before the regular commission meeting.
He has set out an ambitious plan for the internal reform of the commission,
ending the convention of countries always running the same departments,
linking promotion to merit rather than seniority and asking officials to
take personal responsibility for the mistakes of their departments. The
reforms have been very unpopular and not just in Brussels
PRODI: I do understand that this
is a long range effort and you can't have results at the beginning so if
you mean that from many points of view I was highly unpopular in this
first of all, I said yes. Yes. Yes. And I think I shall be for some other
time in the future. Because you can't, you can't make surgery operations
without you know making some cut. Well, you can use other instruments but
generally you know when you have to heal a body you have to cut it.
BUONADONNA: Is this it or can more be done
in future?
PRODI: No, the reform of the Commission
is never ended. Never ended. And this is, this is what must be done. And
without it you cannot have a working Europe, you cannot have you know.
This is, this is the most unknown challenge you know because people are
not interested of this. But I spend half of my time to put the house in
order. I don't know if I shall succeed.
BUONADONNA: An hour later Mr Prodi arrives
at the weekly meeting of the commission. But even here there have been
allegations that he doesn't enjoy the full loyalty of all his colleagues
- a German newspaper suggested that British commissioners Neil Kinnock
and Chris Patten were poised to replace him.
PRODI: No, this is completely untrue.
My commissioners are strong men and women, I should wish that any European
government has such strong men and women as my commissioners are. We work
together and there is also the feeling of happiness you know of you know,
people enjoy to work. Of course in all the collective bodies there are
moments of tension
BUONADONNA: The following day in Lisbon
Romano Prodi sets off to meet Bill Clinton at a US European Union summit
hosted by the Portuguese Presidency. Mr Prodi is here to represent the
European institutions. Relations with the US, on trade and on defence,
have not been smooth recently, so meetings like this are more than courtesy
calls.
The EU is trying to forge
a coherent foreign and defence policy to complement its strong single market.
Mr Prodi is trying to ensure the commission has a central role.
Romano Prodi is used to
international gatherings like this - as a former Italian Prime Minister
- but he has been criticised for presenting himself as the head of the
European Government. And now some wonder whether he has the right vision
for the European Union and the ability to see it through. Mr Prodi says
his vision for Europe isn't modelled on the United States. He is careful
to avoid any suggestion of a federal super-state.
Mr Prodi sees European
integration in terms of a 'network' - which works with the present structure
of regional, national and European institutions, devolving power wherever
possible but, controversially, with a stronger commission at its centre.
PRODI: This is a definition that
is very, very - the guarantee for freedom. Of course, but not because of
that you need a stronger Commission, but you need a stronger Commission
because the needs are so important you know.
BUONADONNA: Back at his home in Italy after
the summit Mr Prodi prepares for the coming week. As head of the European
Commission his biggest challenge is to oversee preparations for the admission
into the EU of a dozen new countries. It's a huge undertaking and progress
has been slow. Romano Prodi would like to see Europe ready to welcome new
countries by 2003 and needs to make sure Europe gets it right. But there
are signs that some member states are cooling on the idea.
PRODI: What I am afraid from the
enlargement is that if we don't do it well our public opinions - British,
Italian, French and German - they will be scared and they will stop it.
BUONADONNA: So it would be a failure
for the Union if enlargement didn't happen quickly?
PRODI: It certainly would be a
failure for me. I link my presidency to the enlargement.
BUONADONNA: But there is a deadline looming.
Before new members can enjoy the benefits of European membership Europe
itself must complete difficult internal reforms - to be agreed in a new
Treaty by the end of the year.
The reforms could cause
problems for the British government. Mr Prodi wants member states to give
up the right to veto in many more areas and to extend the use of Qualified
Majority Voting or QMV, where a decision can be taken by a substantial
majority of countries even if others are against.
PRODI: You know when you are three
families you can go at unanimity. But if you are twenty families it is
difficult to have the unanimity. This is why the Intergovernmental Conference
is so important, you know, we can survive without it but very, very, very
badly.
BUONADONNA: Would you like to see QMV
in items such as taxation?
PRODI: When it's a danger for the
single market. You know if you through your taxation you compete against
me and you make me going in bankruptcy well I think that we have to harmonise
this type of taxation.
BUONADONNA: Taxation is only one of many
controversial issues in Europe at the moment. The poor performance of
the single currency, which has lost more than 15 per cent of its value
since its launch last year, is casting a shadow on the whole monetary union
project. But the Commission President won't accept that the Euro is a weak
currency.
PRODI: I don't know what is a weak
currency, you know the Euro - look the, the European Central Bank it works
well. The eurobond market is bigger than the dollar bond market. The agreement
on how to manage the rate of interest is perfect. I do simply think that
the Euro will be a currency in not a too long time probably equivalent
to the Dollar.
BUONADONNA: But now we're seeing Greece
and soon Denmark and Sweden joining possibly within the next three years
we'll see them all in, how can Britain stay out?
PRODI: Well I could answer that
it is your problem you know. But a lot will depend also upon the fluctuation
of the pound you know it's, you had difficult case in the last month of
competition for the British economy you know and it is clear that a country
like Britain must be competitive. We had some case that made me thinking
about that you know. The Rover case, BMW and other problem for in which
the export companies were under pressure because of the rate of exchange.
In my opinion some day it will become convenient. But it depends upon
our behaviour. Lets say if the Euro will deliver as I think it would be
difficult to stay out. If not will be easy and happy to stay out.
BUONADONNA: Vision alone may not enough
- some say that Romano Prodi has failed to garner enough political support
of the countries that matter. France and Germany have traditionally driven
European integration but their alliance has weakened making the job of
the European Commission President all the more difficult. What's more
the remaining big issues in Europe are increasingly being resolved by governments
acting amongst themselves rather than through the commission. Europe seems
less keen on big ideas these days. Many governments have domestic distractions
and scepticism with European integration has surfaced even in Germany.
The old consensus that succeeded in launching the Euro has faded and Mr
Prodi wants Europe to find a new sense of unity.
PRODI: The spirit of Europe was
born with the six countries and you know Franco German alliance is a guarantee
for, is a glue, lets express for that you know. So I work at a lot for
that.
BUONADONNA: After a weekend at home Romano
Prodi heads back to Brussels. The French and the Germans are trying to
regain the initiative in time for the French Presidency next month. The
German Foreign Minister has suggested that European integration can only
be kept on track by reinforced co-operation - where a few countries are
allowed to forge ahead in certain areas. The British government is nervous
that they will be left at the margins of Europe. But Mr Prodi has embraced
the idea.
PRODI: Yes, this is for clear you
know. It's clear if you have a long train and you have a few wagons that
can go only thirty kilometres per hour, you know all the train will be
a failure you know. And so it's - you have rules and this is why I think
that the so called reinforced co-operation is among willing countries must
include many countries, not only one or two, two or three countries let's
say. And second must be open.
BUONADONNA: But there's a ready made core
group of countries which could decide to move forward. They are the countries
which have joined the single currency, whose finance ministers meet in
the so-called Euro 11. The British government fears that the Euro 11,
from which it is excluded, could become the economic and political engine
of Europe. But Mr Prodi believes it should be strengthened.
PRODI: Yes. Euro 11 as a consequence...
because of its nature will require stronger co-operation. The problem of
harmonising our action in the field of Euro is very very important you
know, and I think that we need to take action in this direction. You need
some instrument of political economy that you call instrument to fight
against erratic shocks let's say you know. Unforeseen events that, and
so the Euro is an instrument to reinforce the co-operation.
BUONADONNA: The Commission President took
over his post during a difficult time when the European institutions faced
a crisis of confidence. He feels Europe's worst enemy is stagnation. Despite
the fears of some countries including Britain he believes it's once again
time to press ahead with political integration
PRODI: Everybody was writing the
debate about Europe is over you know and I know history of European Union
is so simple. You have years in which you sleep. You have to consolidate
to think it over and then the years of progress. We have the enormous effort
for the Euro, it was an enormous effort you know. And then you had to just
to sleep for a while and then the debate is here again because we understand
that we have to interpret history.
BUONADONNA: Romano Prodi might have been
Tony Blair's personal choice when he took his new post nine months ago.
But if he succeeds with his plans for political integration in Europe it
could herald a very difficult time ahead for the British Government and
it could jeopardise Labour's ambition to be at the heart of Europe.
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