ITALY UPBEAT (SORT OF) ON STABILITY PACT

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001517 SIPDIS E.O. 12958: DECL: 03/25/2007 TAGS: EAID ECIN ECON IT KSEI ECIN ECON IT KSEI PREL PRELEAID SUBJECT: ITALY UPBEAT (SORT OF) ON STABILITY PACT CONFIDENTIAL PAGE 02 ROME 01517 01 OF 02 261113Z REF: (A) STATE 38818 (B) 01 ROME 6024 CLASSIFIED BY: CLASSIFIED BY A/ECMIN DAVID MULENEX; REASON 1.5 B/D. ¶1. (C) SUMMARY. THE GOI BELIEVES THAT SOUTHEAST EUROPE COOPERATIVE PROCESS STATES HAVE VERY RECENTLY BECOME MUCH MORE REALISTIC IN EVALUATING THE ORGANIZATION'S POTENTIAL AND THE SEECP, AS A RESULT, IS POISED TO BECOME A MUCH MORE EFFECTIVE ADVOCATE FOR REGIONALISM BOTH WITHIN THE STABILITY PACT AND OTHERWISE. ITALY'S ENCOURAGEMENT, HOWEVER, IS NOT LIKELY TO INCLUDE MONEY. THE ITALIAN CHAIR OF WORKING TABLE II IS SIMILARLY ENTHUSED ABOUT SEECP'S CAPACITY TO TRANSCEND THE SPLINTERED ADVOCACY FOR LOCAL PET PROJECTS HE FEELS HAS HINDERED STABILITY PACT EFFORTS. THE GOI BELIEVES STABILITY PACT COORDINATOR BUSEK WILL PROVE A GOOD CHOICE IF HE TRIAGES SEVERAL OF HIS DISTRACTING OUTSIDE JOBS. END SUMMARY. ¶2. (SBU) THE SOUTHEAST EUROPE COOPERATIVE PROCESS (SEECP) HAS VERY RECENTLY LOWERED ITS AMBITIONS IN LIGHT OF AVAILABLE RESOURCES AND, AS A RESULT, COULD BECOME AN EFFECTIVE FACILITATOR OF REGIONAL PROJECTS, MFA STABILITY PACT (SP) COORDINATOR ALLESANDRO PIETROMARCHI TOLD POLOFF AND ECONOFF ON MARCH 20. APPLAUDING WHAT HE SEES AS A NEW SEECP REALISM AS ALBANIA PREPARES TO HAND THE PRESIDENCY TO YUGOSLAVIA, PEITROMARCHI SAID, "IF YOU HAD ASKED ME 20 DAYS AGO, I WOULD HAVE BEEN PESSIMISTIC; NOW I THINK THINGS ARE COMING ALONG FINE." HE SAID SEECP HAS DROPPED PLANS FOR "GLORIOUS STRUCTURES" SUCH AS A POLITICAL DIRECTORS COMMISSION IN FAVOR OF MORE REALISTIC GOALS SUCH AS (FINALLY) NAMING A REGIONAL REPRESENTATIVE TO SP'S INFORMAL CONSULTATIVE COMMITTEE. CONFIDENTIAL PAGE 03 ROME 01517 01 OF 02 261113Z ¶3. (SBU) PIETROMARCH SAID ITALY HAS NO "VEHICLE" FOR FUNDING EXPENSES FOR A REGIONAL SECONDEE. REMINDED THAT MFA HAD CREATIVELY FOUND SOME MONEY A COUPLE OF YEARS AGO TO PAY THE EXPENSES OF TWO ITALIAN CUSTOMS AGENTS SECONDED TO THE SOUTHEAST EUROPE COOPERATIVE INITIATIVE (SECI),HE SAID THAT WAS EASIER BECAUSE THEY WERE ALREADY ON THE GOI PAYROLL AND, BESIDES, "WE WANTED TO FIND THAT MONEY." IN THIS CASE, HE SUGGESTED, THE SEECP STATES COULD, AS THEY EVIDENTLY HAVE IN THE PAST, SECOND TO THE STABILITY PACT OFFICIALS ALREADY POSTED TO BRUSSELS AND THEREBY AVOID ADDITIONAL EXPENSES. 
 ¶4. (SBU) PIETROMARCHI SAID HE HAS NO STRONG FEELINGS EITHER WAY ON THE MECHANICS OF SEECP PARTICIPATION IN SP. HE WOULD NOT OPPOSE AN SEECP ROLE IN SELECTING A REPRESENTATIVE TO THE INFRASTRUCTURE STEERING COMMITTEE OR THE INFORMAL CONSULTATIVE COMMITTEE IF THE STATES OF THE REGION WANT IT. HE DOES NOT THINK SUCH A ROLE WOULD UNDULY LIMIT THE POWERS OF SP SPECIAL COORDINATOR ERHARD BUSEK. ¶5. (C) PIETROMARCHI OFFERED A QUALIFIED ENDORSEMENT OF BUSEK'S EARLY PERFORMANCE, SAYING HE TRUSTS BUSEK ("OUR MAN IN THE REGION") AND BELIEVES HIM TO HAVE AN IDEAL MIX OF COMPETENCE AND EXPERIENCE BUT JUDGES HIM VERY HARSHLY FOR WHAT SEEMS TO BE A SCATTERED APPROACH TO SP WORK. ASKED WHETHER HE THOUGHT BUSEK SHOULD CONTINUE TO SPLIT HIS TIME BETWEEN SP AND SECI, PIETROMARCHI REPLIED THAT BUSEK ACTUALLY HOLDS FIVE JOBS SIMULTANEOUSLY AND THAT THE SITUATION IS COMPLETELY UNTENABLE. PIETROMARCHI CALLED THE BRUSSELS SP OFFICE "AWFUL" FROM A BASIC BUSINESS PERSPECTIVE WITH THE STAFF INCOMPETENT AND MANAGERIAL OVERSIGHT NONEXISTENT. HE BELIEVES SECI, AT A MINIMUM, SHOULD BE FOLDED INTO SP. CONFIDENTIAL PAGE 04 ROME 01517 01 OF 02 261113Z ¶6. (SBU) STABILITY PACT WORKING TABLE II CHAIR FABRIZZIO SACCOMANNI WHOLEHEARTEDLY ENDORSED AN ENHANCED ROLE FOR SEECP IN SP. IN A MARCH 15 MEETING IN HIS BANK OF ITALY OFFICE WITH ECOUNS AND ECONOFF, SACCOMANNI ASSURED THAT THE STATES OF THE REGION ENDORSE SUCH A ROLE FOR SEECP. HE ENVISIONED IN PARTICULAR SEECP HELPING TO MOVE ITS MEMBER STATES TOWARD A REGIONAL ORIENTATION THAT COULD MAKE THE WORKING TABLE MEETINGS HE CHAIRS FAR MORE EFFICIENT BY OBVIATING LENGTHY INTERVENTIONS BY INDIVIDUAL STATES IN FAVOR OF "COMPETING" PET PROJECTS. ¶7. (C) LIKE PIETROMARCHI, SACCOMANNI IS GUARDED IN HIS EXPECTATIONS OF THE CAPACITY OF SEECP TO TRANSCEND LONG-ESTABLISHED BEHAVIOR PATTERN PERMUTATIONS AMONG ITS MEMBER STATES. ALTHOUGH HE FAVORS SEECP'S ASCENDANCY, HE CAUTIONED THAT THE GROUP'S PARTICIPATION IN SP'S INFRASTRUCTURE STEERING GROUP COULD CLOG UP DELIBERATIONS THERE. HE SAID THE ISC MERITS PRESERVATION BECAUSE IT HAS MADE UNWIELDY AND DECREASINGLY EFFECTIVE DONOR CONFERENCES UNNECESSARY BY INSTITUTIONALIZING PROJECT REVIEWS BY THE SP AND THE FIVE INVOLVED INTERNATIONAL FINANCIAL INSTITUTIONS. COMMENT. THE ISC IS SACCOMANNI'S BABY, BORN AT A TIME (REF B) SP WAS UNDER GREAT PRESSURE BY SOME OF ITS MEMBERS (MOSTLY FRANCE) TO GET OUT OF THE INFRASTRUCTURE BUSINESS ALTOGETHER. CONFIDENTIAL CONFIDENTIAL PTQ2967 PAGE 01 ROME 01517 02 OF 02 261113Z ACTION EB-00 INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00 CTME-00 INL-00 DODE-00 DOTE-00 SRPP-00 DS-00 EUR-00 EXIM-01 E-00 FAAE-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 OPIC-01 PA-00 PC-01 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 STR-00 TRSE-00 USIE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /010W -------------- 7A96A2 261114Z /38 P 261027Z MAR 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 2942 INFO EU CANDIDATE STATES COLLECTIVE EUROPEAN POLITICAL COLLECTIVE AMEMBASSY BELGRADE AMEMBASSY LJUBLJANA AMEMBASSY TIRANA AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 02 OF 02 ROME 001517 SIPDIS E.O. 12958: DECL: 03/25/2007 TAGS: EAID ECIN ECON IT KSEI ECIN ECON IT KSEI PREL PRELEAID SUBJECT: ITALY UPBEAT (SORT OF) ON STABILITY PACT HE BELIEVES THE ISC HAS LEGITIMIZED SP'S CONTINUED CONFIDENTIAL PAGE 02 ROME 01517 02 OF 02 261113Z INFRASTRUCTURE ROLE, WHICH HE HAS ALWAYS BELIEVED IS HIS WORKING TABLE'S PRIMARY RAISON-D'ETRE, AND HE CAN BE EXPECTED TO FIERCELY RESIST ANY DIMINISHING OF ITS EFFICIENCY EVEN IF BROUGHT ABOUT BY SEECP PARTICIPATION. SEMBLER CONFIDENTIAL > 2002ROME01517 - Classification: CONFIDENTIAL