Schroeder calls for European unity in tackling fuel crisis

German Chancellor Gerhard Schroeder wants a greater role for European Union

BERLIN, Germany -- German Chancellor Gerhard Schroeder will discuss fuel prices and the euro with Italian Prime Minister Giuliano Amato at an annual bilateral summit in Berlin this week.

Schroeder wants to see a European Union-wide response to the partly linked currency and energy problems facing European governments, the senior official said.

But he stopping short of echoing German criticism of concessions made by other governments to lobby groups protesting at rising fuel costs.

"It's an issue that all European countries are facing and must be dealt with at a European level," he said.

Separately, another German official criticised other European governments for easing taxes in response to fuel protests.

Prominent among these have been France and Italy, whereas Schroeder has so far refused to ease duties on fuel.

Much of the talks with Amato on Thursday and Friday, which will include foreign, defence and interior ministers from both sides, will also focus on building consensus on key EU reforms due to be agreed at a summit in Nice, France in December.

Germany and Italy were solidly in harmony on most EU issues, including Germany's call for a further round of EU reforms around 2004, the official said.

It was vital to ensure accord in Nice if the Union was to show investors that the euro zone was politically viable and avoid a crisis on confidence in Europe.

"If we don't succeed, we'll have a crisis," he said.

Reiterating Germany's call for the Nice summit to agree on a new EU government conference to settle further reforms around 2004, the official said Schroeder understood reservations from Paris and agreed with the French government that such debate on further reforms must not derail efforts for a treaty in Nice.

The reforms due this year are intended to ensure the Union remains manageable once a dozen or more states in eastern and southern Europe join the 15 existing members.

They include curbing veto rights and the voting powers of small states.

Germany wants a further round of changes to more clearly define the boundaries of responsibilities between the members states and the Union -- a key issue for Germany's federal states -- and between the various EU institutions and, if possible, to introduce a form of legally binding EU constitution.

The official insisted that Berlin's interest in a further round of reforms was not intended to delay the accession of new members -- a fear prompted in some neighbouring countries when Germany first floated the idea in June.

"There is no question of this holding up accession," he said, noting that Germany, which shares long borders with leading candidates Poland and the Czech Republic, was among the most enthusiastic backers of an enlarged Union.

Berlin wanted the EU to be ready to accept new members by the beginning of 2003.

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