Reform deal vital to Schroder

Before the EU leaders arrived in Bonn for yesterday's informal summit at the Petersberg hilltop residence, they each received…

Before the EU leaders arrived in Bonn for yesterday's informal summit at the Petersberg hilltop residence, they each received a letter from the German Chancellor, Mr Gerhard Schroder. It contained the unusual suggestion that, before the end of the summit, the leaders should agree a common line to be fed to the journalists outside.

The exhortation was all the more extraordinary for the fact that it was made by Mr Schroder, who is the wiliest and most ruthless media manipulator Germany has seen for many years. Senior government colleagues never cease to complain about the Chancellor's practice of announcing important policy changes to the media before informing his ministers.

But the Chancellor is determined to strike a deal on the Agenda 2000 reforms and he saw yesterday's meeting as a valuable opportunity to work out in a relaxed, intimate environment how progress can be made.

Mr Schroder's task might be easier were it not for the fact that many of Germany's European partners believe that the Chancellor is one of the worst offenders when it comes to putting national interests above the common good of the EU member-states.

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They complain that Bonn's determination to reduce its contribution to the Brussels budget is getting in the way of its EU presidency role as an honest broker between the conflicting interests of the member-states. French diplomats have been especially scathing about the German presidency, accusing Bonn of jeopardising the Franco-German relationship that has always been at the heart of the European project.

France and Germany disagree on how best to reform the Common Agricultural Policy, with Paris rejecting Bonn's proposal that national governments should share with Brussels the cost of subsidising farmers.

Bonn upset both Paris and London earlier this year with a plan to unilaterally cancel lucrative nuclear reprocessing contracts with plants at La Hague and Sellafield. The plan has since been withdrawn, but the diplomatic damage is already done.

During Dr Helmut Kohl's 16year tenure as chancellor, most disputes between France and Germany were settled in private, frequently with a pacifying phone call from the chancellor's office.

Mr Schroder has yet to establish significant personal relationships with other European leaders and, although he has more personal charm than his predecessor, he lacks Dr Kohl's gift for evoking personal loyalty.

More importantly, Mr Schroder's approach to Europe is more pragmatic than visionary and he is convinced that, more than half a century after the end of the second World War, it is time for Germany to be treated as a normal member of the international community. Most Germans share the Chancellor's view and, as they face economic difficulties at home, they are no longer willing to pay more than their fair share of the cost of running the EU.

Many other EU member-states sympathise with Mr Schroder's wish to reduce Germany's budget contribution, but they complain that Bonn has shown no willingness to reciprocate this understanding of national interests.

Mr Schroder told his senior aides this week that there must be greater co-ordination between the Chancellery and other ministries to avoid the policy U-turns and coalition squabbles that have characterised his government's first months in office.

Clearer leadership and better policy co-ordination at home could spare Mr Schroder the domestic troubles that have prevented him from focusing on the knotty problems associated with Agenda 2000. And a successful conclusion to the negotiations at next month's summit in Berlin would provide a badly-needed boost for the Chancellor's reputation as a politician who can get things done.