Germany's Schroeder sees two-speed Europe in enlarged EU

A bigger European Union would have to operate at two speeds in certain core areas if it wants to function properly, Chancellor Gerhard Schroeder of Germany warned Thursday.

In an interview with Germany's DPA news agency two weeks before the bloc's historic May 1 expansion, he said EU leaders had to consider how the European project could be advanced "in a significantly expanded European Union."

His remarks appear to distance the chancellor from Foreign Minister Joschka Fischer, who has recently warned against groups of EU members progressing at different speeds.

"In areas in which this is necessary for further integration, we should in future quite pragmatically seek ways that will render it possible for a group of states to move forward," he said.

He named a number of areas where a two-speed Europe was already effective, such as the euro single currency, which operates in 12 of the 15 existing EU member.

Other areas he mentioned include the Schengen no-borders zone, which takes in 13 states, and a common European defence policy being pioneered by Britain, France and Germany.

Schroeder said the expansion, when 10 mainly eastern European states will join, was "a date of outstanding historic significance" but which would also severely test the bloc's operating systems and ability.

He said it was a great opportunity to unite Europe "not only economically, but also politically." Such a chance "must be grasped with both hands."

That was why the negotiations to agree a first ever EU constitution were so important, the chancellor added, saying they would ensure the bloc's "ability to operate, transparency and democracy."