German leader, EU seek to ease industry disputes
Date: 30-Apr-02
Country: EU
Author: Carsten Lietz
Schroeder met Commission President Romano Prodi and several commissioners at a Brussels restaurant after trumpeting his agenda in the Financial Times, declaring: "European politicians need to listen more closely to the needs of industry."
Commission plans to open up the European auto distribution market are as unwelcome to the Social Democratic chancellor as are ideas for new takeover rules or plans for stricter regulation of hundreds of potentially toxic chemicals.
Relations soured earlier this year when the Commission tried unsuccessfully to have EU finance ministers warn Berlin that its budget deficit was sailing close to the Maastricht treaty limit of three percent of gross domestic product.
Prodi warned in an interview with a German newspaper ahead of the meeting that Germany could not expect special concessions because of its size or its large net EU budget contribution.
The timing of Schroeder's recent broadsides against Brussels in the run-up to a fiercely contested September 22 general election have led raised questions about his motives.
His main challenger, Bavarian conservative Edmund Stoiber, is regarded by some as a Eurosceptic.
But German officials insisted the dinner at the gastronomic Bijgarten eatery was to win understanding, not votes.
In his Financial Times article, Schroeder said Europe had a political responsibilty to create the conditions under which its companies could compete internationally.
"If European companies are to be lastingly successful in tough international competition, we - to the extent that is possible from the political side - have to put them in that position," he wrote.
Hinting Brussels should think about scrapping or revising some existing rules, Schroeder added: "That includes, where necessary, looking critically at the global implications of existing single market regulations."
Without directly contradicting him, EU spokesman Jean-Christophe Filori said the Commission had often explained that EU competition and merger control rules did not prevent the creation of European industrial champions.
But the rules must be strictly applied to protect European consumers, including Germans, from higher prices due to monopolies and abuse of dominant positions, he said.
A senior EU officials said he did not expect any "operational conclusions" from Monday's meeting.
German officials voiced optimism that in some of areas, such as chemicals policy, the two sides were on the road to a compromise, although did not expect individual issues to be dealt with in detail.
They also expressed hope Berlin's desire to see industry treated on a par with financial services would be reflected in a new Commission industry policy paper to be presented in May.
They played down speculation of a possible clash.
"It is not in our interests to pursue a confrontational strategy," one Schroeder aide said.
The EU commissioners for the environment, industry and competition were all attending the dinner, along with the head of Schroeder's chancellery office. (additional reporting by Nick Antonovics in Berlin).