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For the first time in its history the European Commission is undergoing a major reform. In the aftermath of the 1999 crisis the Prodi Commission has initiated a comprehensive programme for reforming management and accountability. The main focus is improving internal management to enable the Commission to perform its core functions efficiently. However, organizational efficiency in itself will not deal with the more challenging problems of effective governance confronting the European Union (EU). In the future, management reforms will need to address the EU's management deficit by building capacities to improve the effectiveness of policy networks and steer structural change.

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