Reforming and democratising the institutions of the EU is central to the "historic and moral challenge" of enlargement, the President of the European Commission, Mr Romano Prodi, said yesterday in presenting the Commission's strategic objectives for the next five years.
And he promised a White Paper on governance of the EU by this summer dealing with the issue of balance between national and Brussels powers.
Responding to reporters' questions about Austria, Mr Prodi insisted that the boycott of bilateral diplomatic contacts would not affect the functioning of the EU.
He said the Commission had clearly set out the fundamentals of the European Union, democracy and human rights, and would serve as guardian of those principles. It would come down hard on any country in violation, he said.
Of the need to reform, he warned that "in the first six centuries of the last millennium, Italy, my own country, was in the forefront of sciences, economics, weapons-building, philosophy, political, science, banking.
"And then, all of a sudden, we disappeared from the history books, because we were not able to become a national state . . . There was no longer continuity of development, there was a sudden change."
Europe faced a similar challenge in the era of globalisation. "If European states cannot unite at a higher level they are lost," he argued.
Asked if he could list powers that should be returned to nation-states, Mr Prodi refused to be drawn beyond saying that everyone could list some of the more ridiculous things that Brussels had done in the last few years.
Sources close to Mr Prodi say the White Paper is unlikely to list legal competences for redistribution to member-states, but will articulate a new theory about how Brussels can provide added value to nationally administered policies.
They cite as a model plans by the EU's competition authorities to devolve day-to-day administration of the competition regime to member-states' own authorities in a framework established and monitored by Brussels.
"The Commission," yesterday's White Paper explained, "will focus more on its core functions of policy conception, political initiative, enforcing Community law, monitoring social and economic developments, stimulation, negotiation and where necessary legislation."
In essence, Mr Prodi is attempting to turn the discussion from a sterile debate between federalisers and anti-federalisers into one about the nature of EU power and where exactly Brussels can provide added value in a globalising economy.
