Steelie shows her mettle INTERVIEW OF THE WEEK Neelie Kroes, the EU

0 Comments | Sunday Herald, The, Jun 21, 2009 | by Steven Vass

EUROSCEPTICISM is on the rise in the UK, and Neelie Kroes wants to know why. The Dutch EU Competition Commissioner, conqueror of American multinationals and scourge of European protectionists, is not called Steelie Neelie for nothing.

" The euroscepticism of the UK is more emotional than based on facts," she says." There is so much advantage for the UK in the EU and the single market that it makes sense to be less eurosceptic." The European elections certainly gave the commission cause for concern as eurosceptics were elected in rising numbers and voter turnout looks to have fallen to 43%, its lowest ever, compared to 46% in 2004, 49% in 1999 and regularly over 60% back in the 1970s. As usual the Brits were among the least euro-friendly, with nearly 27% voting for eurosceptic parties and the UK Independence Party( UKIP) coming second overall with 16. 5% of the vote and 13 seats. David Cameron has won enough support from the Polish opposition Law and Justice Party and parties from six other countries to leave the federalist European People's Party and set up a new Eurosceptic grouping in the parliament.

Kroes( pronounced 'cruise'), in Scotland for last week's Forbes CEO Forum, puts a positive gloss on Cameron's likely premiership next year, although you sense hope as much as expectation.

" David is a very competent and realistic guy," she says with a smile." I can't imagine that he will give up what's such a beneficial situation for the UK." Of the UK press, she says she does not get frustrated." That just creates headaches, and there's so much to do," she says. But, at European level, she concedes that not all the euroscepticism can be blamed on people over-focusing on national interests.

" I think that people are taking the advantages of the EU for granted, but also we are not communicating enough about what Europe is delivering. There are still misunderstandings, such as over bureaucracy. One example is civil servants. People think there are huge numbers, but the total commission is just 32, 000." By contrast, the Scottish government employs 151, 000 people, including about 6000 in core functions.

She continues:" There are 862 people involved in my ministry. When I was minister of transport and public works[ in the Netherlands] in the 1980s, that was nearly the number that was just looking after the canals. During the credit crisis, only 70 people were dealing with all of the problems of the financial institutions. They were working day and night." The result of this midnight-oil burning is that Kroes and her commission have been at the centre of the debate about the future of the banks. They sprang into action to investigate a number of European rescues amid concerns that state aid would disadvantage those that had not been bailed out.

Northern Rock and the UK asset protection scheme are among those under the microscope, while Lloyds and Royal Bank of Scotland face enforced downsizing to make amends for what they gained. This has already been the fate of Germany's WestLB and Commerzbank, who last month announced plans to cut their asset bases by 50% and 47% respectively. It also publicly dressed down the French government for apparently aiding

Renault in exchange for the company moving a production plant from Slovenia to the motherland.

" State aid can be a medicine for a market failure, but shouldn't distort too much the competition playing field. It has to have a positive effect at the end of the day," she says.

If not, watch out. In her five years as competition commissioner, regarded as the most powerful figure in Brussels apart from that of the presidency, Kroes is known to take no prisoners. She has imposed about 10 billion(L 8. 5bn) in fines against companies that abuse monopolies or act as cartels. THE irony is observers feared Kroes would not be tough enough when she was selected. A longstanding member of Dutch centre-right party VVD,( People's Party for Freedom and Democracy) she made her name as the minister in charge of privatising the telecoms and postal industries in the 1980s before moving into non-exec posts at the likes of McDonalds Netherlands, Volvo, investment bank NI and shipping group Ballast Nedam. To assuage concerns she would be a stooge for former board colleagues, not to mention everyone else, she had to make clear that another commissioner would adjudicate on any cases that touched on her previous interests. You would not hear such worries now, of course, and Kroes is surprisingly popular in her native Netherlands for an ex-politician.

Dr Peter van Ham, director of global governance research at the Netherlands Institute of International Relations, says:" She can be compared to a person like Thatcher. She's very tough. She's willing to overcompensate for the fact that she's a woman."

He adds that she has developed a reputation as a details person who has an excellent handle on her brief:" She doesn't outsource things to civil servants, unlike some commissioners." Although Kroes' term is likely to come to an end when the new commission begins later this year, there are still numerous areas directly affecting Scotland that are high on her agenda, before they are passed to a new commissioner.