Prodi refuses to sack members over fraud allegations

The European Commission survived its most serious test yesterday when its president Romano Prodi refused to sack any of his commissioners over allegations of fraud.

However, the threat of resignations will hang over at least three members of his 20 strong Cabinet until December when investigations will be complete into Eurostat, the EU’s statistics office.

Interim reports from three agencies, including the EU’s anti-fraud body Olaf, outlined how millions of euro was diverted by Eurostat’s most senior management into secret bank accounts.

Mr Prodi, who took office on a promise of zero tolerance of wrong- doing, spent over 40 minutes outlining his case to the parliament’s budget control committee which has ultimate responsibility for the EU’s funds.

Despite growing calls for resignations, he succeeded in getting the committee to give him time and delay any action until all the reports are in and the budget committee has considered them.

“Wait and see the facts of advance before you pass judgment,” he said but added, “On the basis of the facts I have outlined, after careful thought and in full awareness of the issues, I consider there is no reason to ask any Commissioner to assume the political responsibility and resign”.

The man whose career is still hanging in the balance is Monetary Affairs Commissioner Pedro Solbes with some calling for the resignation also of Budget Commissioner Michaele Schreyer and Reform Commissioner Neil Kinnock.

Parliament President Pat Cox indicated he would not flinch from demanding resignations if necessary. “We are prepared to be led by the evidence and it will bring us where ever it will bring us,” he said.

However, Graham Watson, leader of Mr Cox’s political group the Liberals, said that while he was prepared to wait for the completion of the investigations, he wanted resignations.

“If I were Mr Solbes I would be drafting my resignation letter,” he said.

The interim reports were on Mr Prodi’s side to a large extent pointing out that the irregularities occurred before he took over from the Santer Commission in 1999.

Comprehensive reforms of the entire commission have been under way for the past four years and Mr Prodi said they were having an effect.