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,3 Brussels, 26 May 2000 3URGLPHHWV3ULPH0LQLVWHUVRI*HUPDQ/lQGHU Both sides stress need to clarify decision-making in the EU and resolve to clear up disagreements In a meeting yesterday in Berlin with the Ministerpräsidenten (Prime Ministers) of Germany’s Länder (regions) and Foreign Affairs State Minister Zöpel, Commission President Romano Prodi indicated that a clarification of competencies in a future Treaty on Europe would help avoid further disputes or misunderstandings. « We must have clear views about a delimitation of competencies », Prodi said. He cautioned, however, that this was unlikely to be achieved in the present Intergovernmental Conference (IGC) as not all Member States feel as strongly as Germany Länder about the need of introducing a « catalogue of competencies » into the Treaty. The mandate from the Heads of State and Government to the IGC is clear, Prodi recalled, namely to make the EU fit for enlargement. « At this stage we simply cannot afford to embark on a wide-ranging exercise of improving all aspects of the Treaty. » Nevertheless, it is important to start a serious debate about « a new division of labour – a new, more democratic form of partnership – between the European institutions, the Member States, regional and local authorities and civil society ». Prodi stressed that the Commission intends to do precisely this by publishing, before summer 2001, a White Paper on governance. Regarding the other main discussion topic, the future of services of general interest, the Commission President underlined that it had always been recognised that such services are a key element in the European model of society. « I fully appreciate why these services (Daseinsvorsorge) are so important for Germany and other Member States, and in particular for the Länder. Their financing, however, must not distort the internal market or competition in a disproportionate way. » Mr Prodi pointed out that Member States are in principle free to define what are general interest services. « It is for the Member States to make the fundamental choices concerning their society, whereas the job of the Community is merely to ensure that the means they employ are compatible with their European commitments. The other basic rule is that if a public service can be subsidised, it cannot be oversubsidised ». The President was confident that workable solutions for specific problems arising in this area can be found without changing the Treaty. « The Commission is updating the 1996 Communication on Services of General Interest in Europe, as requested by the Lisbon European Council. It will give us the opportunity to carefully assess all new factors and developments which may influence the balance between internal market principles and objectives of general interest. » All participants in the meeting welcomed the opportunity to have this exchange of views with the Commission President. Speaking for the Ministerpräsidenten, Mr Henning Scherf praised President Prodi’s open-mindedness for the Länder’s concerns. The dialogue with the German Länder and federal government representatives, which started 12 years ago with a similar meeting attended by then Commission President Jacques Delors will be continued including contacts with regard to the preparation of the White Paper on governance. The Prime Ministers present at the meeting were Ms Simonis (Schleswig-Holstein), Messrs Diepgen (Berlin), Koch (Hessen), Müller (Saarland), Scherf (Bremen), Ringstorff (Mecklenburg-Vorpommern), Stoiber (Bayern), Stolpe (Brandenburg) and Vogel (Thüringen). State Minister Zöpel from the Ministry of Foreign Affairs also participated. 2.