STRASBOURG (AFP) - Incoming EU Commission chief Jose Manuel Barroso withdrew his proposed EU executive team in the face of a veto threat, backing down in a high-stakes standoff with the European Parliament.
The confirmation that Barroso's new commission will not take office as scheduled on November 1, following a row over controversial Italian Rocco Buttiglione, places the European Union in an unprecedented situation.
"If a vote is taken today the outcome will not be positive for European institutions," he told the EU assembly to loud applause. "I need more time to look at this issue."
"In these circumstances I have decided not to submit a new commission for your approval today," he added.
An EU official immediately confirmed that the current executive headed by Romano Prodi would stay in office in a caretaker capacity beyond November 1.
The head of the Socialists, who were the key force threatening to veto Barroso's team, immediately claimed victory.
"I think it's a victory for EU parliament," said Martin Schulz. "The commission needs a wide support of the European Parliament, a small support is no sufficient," he said.
The fast-moving developments came after a series of meetings late Tuesday and Wednesday failed to overcome the deadlock.
The veto threat was in response to Barroso's insistence on keeping the conservative Buttiglione as his pick for the sensitive EU justice brief, despite a storm sparked by the Italian's comments on gays and women.
As of late Tuesday, nearly all 200 Socialists in the 732-seat legislature and at least 50 Liberals were said to be preparing to vote against the Barroso team, along with smaller left-wing and eurosceptic groups.
In his speech to parliament, Barroso confirmed that he will consult with EU leaders in the coming days -- he is by coincidence to meet them in Rome on Friday to sign the EU's new constitution -- to seek a way forward.
"I need more time to look at this issue and to consult with the European Council (of EU leaders) further so that we can have strong support for the new commission, once finally approved," he said.
"These last days have demonstrated that the European Union is an intensely political construction and this parliament, elected by popular votes across all our member states, has a vital role to play in the governance of Europe."
Meanwhile Italian newspaper reports said that Buttiglione had refused a request from Prime Minister Silvio Berlusconi to withdraw his candidacy, to head off the crisis.
"Berlusconi to Buttiglione: give up," the daily La Stampa headlined, saying that Buttiglione apparently dug in his heels, the paper said, preferring to await the now-cancelled parliamentary vote.
The Corriere della Sera reported that Berlusconi telephoned Buttiglione, and while he did not specifically call on the former Italian minister to withdraw his candidacy he said he should make a "noble gesture" to alleviate the crisis.
What exactly will happen in the coming days is unclear.
What is certain is that the EU's image on the world stage will be tarnished yet again just as the 25-nation tries to recover from a year of bitter infighting over the new constitution and the US-led war in Iraq.
And with the United States preparing to elect a new president on November 2, across the Atlantic, the world's most powerful trading bloc will be left all but rudderless.

10/27/2004 - 11:19 GMT - AFP