Blair calls for EU to be given more power but plays down fears of 'superstate'

Tony Blair will call tomorrow for the European Union to take on more powers to become a bigger force on the world stage, but will insist this does not entail a federal superstate.

In what aides describe as a landmark pro-European speech, the Prime Minister will argue that more majority voting will be needed to prevent gridlock in decision-making when the 15-nation bloc admits 10 new members in 2004.

Mr Blair will say Europe is at a crossroads as he sets out Britain's goals for the Convention, chaired by the former French President Valéry Giscard D'Estaing, which is drawing up a blueprint for the EU.

The Prime Minister's theme will be that the EU should take on a bigger role by being "democratised rather than centralised". He will say that the way to ensure democratic legitimacy is not to hand more power to Brussels but to increase the role of the European Council, which is composed of the leaders of the 15 EU members, and the Council of Ministers, which includes ministers from the member states.

The EU should not be seen as an alternative to nation states, but a way of enhancing the issues that countries handle themselves which can be done better by working together, he will say.

Mr Blair will call for the appointment of a powerful President of the European Council, who would become the EU's figurehead on the world stage and implement the decisions taken by the 15 leaders. He or she would, in effect, replace the current system of "musical chairs" where one country holds the rotating Presidency for six months.

After criticism of the plan by smaller EU countries, Mr Blair will insist that Britain is not trying to downgrade the European Commission or the European Parliament, saying Britain wants them to be strong and effective. For example, the Commission should have more powers to crack down on member states which do not obey the rules of the EU club.

A government source said: "We accept the need for greater integration and for Europe to do more through shared sovereignty. But the power must be rooted in the democratic institutions of the member states, so there is accountability through national governments and parliaments." Britain wants national MPs to play a bigger role in the EU, for example by ensuring decisions best taken by member states are devolved downwards while those best taken at a European level are passed upwards.

The Prime Minister will say that the governing treaty to be agreed in two years should extend majority voting to prevent the EU grinding to a halt.The veto would still apply to a number of crucial areas such as taxation, declaring war and amending treaties.

Although Mr Blair is not expected to address in detail the issue of the single currency, his pro-EU stance will cheer supporters of early British entry. The Prime Minister is said by aides to be determined to call a referendum before the next general election.