On March 1, 2004, Russian President Vladimir Putin submitted a proposal to the State Duma to appoint Mikhail Fradkov as Prime Minister of Russia. Mr. Fradkov was the representative of the Russian Federation in the European Union Commission.

Mr. Fradkov outlined the main goals of a new Cabinet of Ministers at the meeting on Friday, including the improvement of welfare and safety standards. The key economic goals should serve the same purpose, Mr. Fradkov stressed. In particular, he sees the completion of the tax reform as a key priority. Mr. Fradkov said it was necessary to reduce the single social tax. He also spoke about the housing and communal sector reform. Although it was started a long time ago, "most people could only judge about it by rising household bills", Mr. Fradkov noted.

Mr. Fradkov said he was going to form a new government structure and analyze the situation in the real sector of the economy and in the social sphere.

Earlier, he spoke about changes in a new Cabinet of Ministers. According to Mr. Fradkov, the number of ministries and deputy prime ministers will be reduced in the new government. In his opinion, this will enhance the effectiveness and responsibility of top government officials. There would be only one Deputy Prime Minister in the new government, Mr. Fradkov said on Friday.

He said he was "somewhat biased against the Cabinet Staff: the smaller it is, the better". "This implies a clear idea about your functions and goals," he stressed.

Mr. Fradkov plans to create a super ministry uniting the Economy Ministry, the Antimonopoly Ministry, the Property Ministry, the Ministry of Industry, Science and Technology, the State Statistics Committee and defense agencies. He would like to see Mr. Alyoshin as the head of the super ministry. In addition, the Communications Ministry could be united with the Transport Ministry and the Railway Ministry.