Bangemann decision to quit raises ethical issue

The European Commission, already suffering a PR annus horribilis, took another blow yesterday with the unexpected and embarassing announcement by the German Industry Commissioner, Mr Martin Bangemann, that he wishes to leave as soon as possible to join the board of the Spanish telecommunications giant, Telefonica. Mr Bangemann's Commission portfolio includes telecommunications and his decision is seen as raising important ethical concerns about conflicts of interest. Mr Bangemann's spokesman yesterday insisted that his directorate was simply involved in the framework for general telecommunications legislation and did not rule on either competition or state aids cases affecting individual firms. He said he did not know how long the Commissioner had been negotiating but that he had indicated his wish to resign as soon as a deal had been done.

A Commission spokesman could not say whether Mr Bangemann had intervened in any of several cases involving Telefonica.

The decision to leave the caretaker Commission ahead of its replacement in late September has come as a shock to the President of the Commission, Mr Jacques Santer, who is currently on his way back from the EU-Latin American summit in Rio. He is expected to raise the issue at the weekly meeting of the Commission today when Mr Bangemann's responsibilities are likely to be reallocated.

The Commission, unlike some member states, does not insist on a "cooling off" period between leaving a senior executive post and assuming a new role in a related company. In the UK such a cooling off period is of two years and during that time a former minister must seek the approval of an independent advisory committee before taking up any paid post. Ireland does not have specific rules on the issue.

But Mr Bangemann signed a pledge when he joined the Commission in line with his treaty obligation - "I. . . undertake to respect both during and after my term of office, the obligations arising therefrom, and in particular the duty to behave with integrity and discretion as regards the acceptance, after I have ceased to hold office, of certain appointments or benefits."

If the Commission or Council of Ministers finds he is in breach of the pledge it may apply to the European Court of Justice to strip him of all or part of his pension.

Mr Bangemann had previously been in trouble with Mr Santer for accepting payments for speaking appearances and use of his Commission driver and car to travel back to Germany to his yacht.

His decision was yesterday described as "reeking of impropriety" by the leader of the Socialist Group in the Parliament, Ms Pauline Green.