FRANKFURT (AFX) - Chancellor Gerhard Schroeder is to propose the EU commission should be extended into a central European government, while the council of ministers should take on the role of an upper house of parliament, Der Spiegel reported. The weekly said the radical proposals for EU reform will be made by Schroeder in a keynote speech to the SPD (Social Democratic Party)'s Autumn party conference, whose contents it cited. Schroeder will suggest the EU institutions should be reformed along German lines, with the European Parliament gaining total responsibility for the EU's budget and the massive common agricultural policy. The powerful council of ministers would take on the role of an upper chamber and the current European Commission would then have the function of a central European government, it said. However certain policy areas, like taxation, will be shifted back to the national governments to retain their room for manoevre. It said the main disagreement within the German government is how the new European constitution should be thrashed out. Policy makers in the SPD want national parliaments to be involved, while civil service mandarins would prefer an intergovernmental conference not involving MPs.