Prodi calls for Europe tax

Prodi: EU structure "probably outdated"

PARIS, France -- European Commission President Romano Prodi has called for the introduction of a European tax.

"The creation of a European tax, ... instead of the current system of national contributions that is a constant source of conflict between member states, would probably be an opportune solution, and one that is often mentioned," he said.

The European Union's running costs are £60 billion-a-year ($90 billion).

Speaking in Paris on Tuesday, Prodi said the European Union's existing structure was in many respects "probably outdated," and suggested the commission should have more power.

The commission should be more involved in EU foreign policy and should lead euro-zone economic strategy consultations with the European Central Bank (ECB), he said.

Prodi said: "In the monetary area, there is an independent central bank. But there is no stable partner which can provide an overall vision of the economic strategies of the union and its member countries.

"Only the commission, under the mandate of the Council (of Ministers), can be the counterpart in talks with the central bank."

French Prime Minister Lionel Jospin called on Monday for a European constitution, an "economic government" and a "social treaty," all run by a "federation of nation states."

Prodi, who met Jospin and French President Jacques Chirac earlier on Tuesday, said he welcomed Jospin's call for a greater focus on the substance of EU policy. He added that this was not necessarily incompatible with German demands for more radical institutional reform ahead of a planned intake of new members.

Jospin's vision for the future of Europe rejects a recent proposal by German Chancellor Gerhard Schroeder for outright federalism and shuns Chirac's idea of allowing certain member states to push ahead with closer integration.

Underlining how keen he is that the European Union should attach more importance to environmental issues, Prodi reiterated there was no question of it reneging on the 1997 Kyoto agreement on global warming, despite Washington's withdrawal from the accord.

"The European Union will fight to save the Kyoto agreement," he said. "Our sense of responsibility is at stake."