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 ITALY'>IT KSEI ECIN ECON ITALY'>IT KSEI PREL PRELEAID
SUBJECT: ITALY UPBEAT (SORT OF) ON STABILITY PACT


CONFIDENTIAL

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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.

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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.
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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.

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CONFIDENTIAL PTQ2967

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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
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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

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2002ROME01517 - Classification: CONFIDENTIAL