GOI VIEWS ON FUTURE OF EU; PREPARATIONS FOR

C O N F I D E N T I A L SECTION 01 OF 02 ROME 003313 SIPDIS DEPT FOR EUR/ERA, EUR/WE E.O. 12958: DECL: 07/05/2007 TAGS: PREL EU EU IT ITPREL EUN SUBJECT: GOI VIEWS ON FUTURE OF EU; PREPARATIONS FOR PRESIDENCY CLASSIFIED BY: A/DCM MARGARET DEAN. REASON:1.5 (B)(D) CONFIDENTIAL PAGE 02 ROME 03313 01 OF 02 051553Z ¶1. (C) SUMMARY: ON JULY 3, THE CHIEF OF THE MFA'S OFFICE FOR EU INSTITUTIONAL ISSUES, GUISEPPE BUCCINO, EXPRESSED TO POLOFF HIS CONCERNS ABOUT PROGRESS, OR THE LACK THEREOF, ON CRITICAL EU INSTITUTIONAL REFORMS. HE IS STILL HOPEFUL THAT THE CONVENTION DOCUMENT CAN BE COMPLETED BY THE END OF THE ITALIAN PRESIDENCY IN DECEMBER 2003. THE GOI WILL ESTABLISH TWO NEW OFFICES IN THE MFA TO DEAL WITH ITS PRESIDENCY ISSUES. END SUMMARY. ¶2. (C) BUCCINO BEGAN WITH THE ISSUE THAT, IN HIS VIEW, COULD DERAIL ENLARGEMENT AND EFFORTS TO STRENGTHEN EU INSTITUTIONS; THE COMMON AGRICULTURAL POSITION (CAP), SPECIFICALLY DIRECT FARM SUBSIDIES TO FARMERS FROM NEWLY ADMITTED STATES. THE SEVILLE COUNCIL AND JUNE 10 GAC HAD FAILED TO DEAL EFFECTIVELY WITH THIS ISSUE, A "HEADS IN THE SAND" ATTITUDE AMONG EU LEADERS THAT WORRIES BUCCINO. WAITING UNTIL AFTER THE GERMAN ELECTIONS TO DEAL WITH CAP IS "CUTTING IT TOO CLOSE" TO THE END OF THE DANISH PRESIDENCY, AND RISKS PUSHING OFF A SOLUTION UNTIL THE GREEK PRESIDENCY IN 2004, A DEVELOPMENT WHICH BUCCINO FEELS COULD JEOPARDIZE THE SCHEDULES FOR ENLARGEMENT AND THE CONVENTION. ¶3. (C) ASIDE FROM SPECIFIC PAYMENT SCHEDULES, THERE WERE FUNDAMENTAL ISSUES TO DEAL WITH. GERMANY WOULD BE UNLIKELY TO ACCEPT ANY SOLUTION THAT REQUIRED ADDITIONAL CONTRIBUTIONS, WHILE THE FRENCH VIEW DIRECT PAYMENTS AS PART OF THE ACQUI. BUCCINO HOPED THAT A COMPROMISE COULD BE REACHED WHICH WOULD START PAYMENTS TO FARMERS FROM NEW MEMBER STATES AT 10-20 PERCENT OF THOSE IN CURRENT MEMBERS, RISING TO 100 PERCENT IN 2013. THIS SCHEDULE WOULD BE CONCOMITANT WITH GENERAL CAP REFORM AND REDUCTION OF PAYMENTS THROUGHOUT CONFIDENTIAL PAGE 03 ROME 03313 01 OF 02 051553Z THE EU. IN ANY CASE, BUCCINO SAID THE EU NEEDS TO START TALKING ABOUT THE DETAILS RIGHT AFTER THE SUMMER BREAK, NOT WAIT UNTIL NOVEMBER. ¶4. (C) DEVELOPMENTS CONCERNING THE SECOND ATTEMPT AT A SUCCESSFUL IRISH REFERENDUM ON THE NICE TREATY THIS AUTUMN WERE ALSO TROUBLING BUCCINO. HE SAID THAT IRISH AND OTHER EU LEADERS WERE TOO CONFIDENT IN A POSITIVE OUTCOME, AND HE IS "ASTONISHED" BY THE LACK OF ORGANIZATION BY THE GOVERNMENT OF IRELAND TO EDUCATE AND GET THE WORD OUT ON THE IMPORTANCE OF NICE TO THE FUTURE OF EUROPE. IF THERE WERE ANOTHER "NO" VOTE IN IRELAND, IT WOULD SEND A "POLITICAL SHOCK" THROUGHOUT THE EU FROM WHICH THE ORGANIZATION MAY NEVER RECOVER. THE IRISH GOVERNMENT MUST EXPLAIN TO ITS PEOPLE THAT THERE IS MORE AT STAKE IN NICE THAN ECONOMIC ISSUES. THE FUTURE OF A "NEW EUROPE," WORKING AS AN EQUAL WITH THE U.S. TO INFLUENCE GLOBAL EVENTS AND DECISIONS, WAS ON THE LINE. ¶5. (C) GETTING THE EU MEMBER STATES TO AGREE ON THE LIST OF REFORMS IN THE NICE TREATY WAS A "PAINFUL" PROCESS, CONTINUED BUCCINO. REOPENING NICE, OR ATTEMPTING TO INCORPORATE ITS KEY ELEMENTS IN THE CONVENTION DOCUMENT, WOULD REQUIRE A MUCH LONGER TIMEFRAME THAN ORIGINALLY PROJECTED FOR INSTITUTIONAL REFORM. CERTAINLY, REOPENING NICE WOULD MEAN THAT THE CONVENTION DOCUMENT COULD NOT BE COMPLETED BY THE END OF THE ITALIAN PRESIDENCY ON 2003. ¶6. (C) BUCCINO WAS A BIT MORE OPTIMISTIC THAT A COMPROMISE COULD BE FOUND ON GREEK/TURKISH DISAGREEMENTS REGARDING ESDP AND CYPRUS. HE THOUGHT THAT IT WOULD BE POSSIBLE TO REACH A COMPROMISE WHERE THE GREEK PORTION OF CYPRUS WAS ADMITTED IN CONFIDENTIAL PAGE 04 ROME 03313 01 OF 02 051553Z THE NEXT ROUND OF ENLARGEMENT, BUT THE EU WILL HAVE TO "THINK CREATIVELY, AND QUICKLY" ABOUT CONCESSIONS TO TURKEY. THE COMMISSION'S PROPOSAL FOR AN ENHANCED AID AND FINANCIAL PACKAGE, COUPLED WITH "CONFIDENCE BUILDING MEASURES," WOULD NOT BE ENOUGH, SAID BUCCINO. TURKEY WILL WANT A DATE FOR ACCESSION, EVEN THOUGH THEY ARE CLEARLY NOWHERE NEAR THE COPENHAGEN CRITERIA. BUCCINO THOUGHT A COMPROMISE COULD BE REACHED WHEREBY THE COUNCIL APPROVES STRONGER LANGUAGE CALLING FOR TURKISH ACCESSION, BUT WITHOUT A SPECIFIC DATE FOR ENTRY INTO THE EU. BUCCINO AVERRED THAT ESDP ISSUES WOULD FALL INTO PLACE ONCE A CYPRUS ACCESSION AGREEMENT WAS HAMMERED OUT. ¶7. (C) BUCCINO'S VIEW IS THAT TURKEY WOULD HAVE CONTINUING PROBLEMS JOINING THE EU DUE TO CURRENT MEMBER STATES' FUNDAMENTAL VIEWS ON THE ORGANIZATION'S ROOTS, WHAT IT MEANS TO BE "EUROPEAN," AND EUROPE'S CULTURE (BASED ON GREEK, LATIN, AND ESPECIALLY CHRISTIAN PHILOSOPHIES). BUCCINO THOUGHT THAT MEMBER STATES MUST BEGIN TO VIEW THE EU MORE LIKE THE ROMAN EMPIRE, IN WHICH ALL WERE CONSIDERED PART OF THE EMPIRE, DESPITE GEOGRAPHIC, CULTURAL, RELIGIOUS, LANGUAGE DIFFERENCES. ¶8. (C) BUCCINO SAID THAT THE GENERAL AGREEMENT AMONG MEMBER CONFIDENTIAL CONFIDENTIAL PTQ7490 PAGE 01 ROME 03313 02 OF 02 051554Z ACTION EUR-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CIAE-00 DODE-00 PERC-00 SRPP-00 DS-00 VC-00 H-01 TEDE-00 INR-00 IO-00 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00 SS-00 TRSE-00 T-00 USIE-00 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 SAS-00 /005W -------------- C71287 051554Z /38 P 051605Z JUL 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 4651 INFO EU CANDIDATE STATES COLLECTIVE PRIORITY EU INTEREST COLLECTIVE PRIORITY EU MEMBER STATES COLLECTIVE PRIORITY USMISSION USNATO PRIORITY USMISSION USOSCE PRIORITY C O N F I D E N T I A L SECTION 02 OF 02 ROME 003313 SIPDIS DEPT FOR EUR/ERA, EUR/WE E.O. 12958: DECL: 07/05/2007 TAGS: PREL EU EU IT ITPREL EUN SUBJECT: GOI VIEWS ON FUTURE OF EU; PREPARATIONS FOR PRESIDENCY STATES OVER THE NEED FOR INSTITUTIONAL REFORM WAS ENCOURAGING. THERE MUST BE AN OVERALL REDUCTION IN THE CONFIDENTIAL PAGE 02 ROME 03313 02 OF 02 051554Z NUMBER OF COUNCILS. THE QUALITY OF LEGISLATION IS COMPROMISED WHEN IT IS NOT DISCUSSED ACROSS THE BOARD, AND THEREFORE A NEW "COUNCIL FOR LEGISLATION" WAS NEEDED, WITH OTHER, STREAMLINED COUNCILS ACTING AS "ADVISORY COMMITTEES." THE SIX-MONTH ROTATIONAL PRESIDENCY ALSO HAD TO GO, BUCCINO EMPHASIZED. THE CURRENT SYSTEM HAD OBVIOUS NEGATIVE EFFECTS ON CONTINUITY, AND WAS AT ODDS EVEN WITH SOME OF THE EU'S OWN PROCEDURES. FOR INSTANCE, THE TWELVE-MONTH BUDGET PROCEDURE SHOULD HAVE OVERSIGHT BY SINGLE PRESIDENCY. ¶9. (C) BUCCINO SAID THE CONVENTION WAS PROGRESSING STEADILY, BUT SLOWLY, AND HE WAS CONCERNED THAT DEBATE ON FUNDAMENTAL INSTITUTIONAL ISSUES, SUCH AS LIMITATION OF COMPETENCIES, COUNCIL PRESIDENT SELECTION, THE POWERS OF EUROPEAN PARLIAMENT AND ITS RELATIONS WITH OTHER EU BODIES, HAD YET TO BE ADDRESSED. THE CONVENTION'S GOAL WAS TO PRODUCE A DOCUMENT OF NO MORE THAN 140 ARTICLES WITH 2-3 ANNEXES TO PRESENT TO THE INTER-GOVERNMENTAL COUNCIL IGC), CONTAINING, INTER ALIA, A HUMAN RIGHTS CHARTER, DEFINITION OF INSTITUTIONS, INSTITUTIONAL COMPETENCIES, AND LEGAL PRESENCE OF THE EU. ¶10. (C) BUCCINO WAS HOPEFUL THAT THE DOCUMENT COULD BE COMPLETED BY THE JUNE 2003 COUNCIL. THE IGC WOULD THEN BEGIN AFTER A SHORT "COOLING OFF" PERIOD. IF THE QUALITY OF THE DOCUMENT WAS HIGH, AND THERE WERE NO AMBIGUOUS AREAS, IT WOULD BE COMPLETED BY THE END OF THE ITALIAN PRESIDENCY IN DECEMBER 2003. IF THE DOCUMENT HAD "OPEN QUESTIONS" LEFT FOR THE IGC TO SOLVE, MEMBER STATES WOULD LOOK FOR COMPROMISES WHICH COULD ULTIMATELY WEAKEN THE UNION AND DELAY REFORM. CONFIDENTIAL PAGE 03 ROME 03313 02 OF 02 051554Z ¶11. (C) THE GOI HAS, UNCHARACTERISTICALLY, STARTED EARLY PLANNING FOR ITS PRESIDENCY IN THE LATTER HALF OF 2003. ACCORDING TO BUCCINO, PM BERLUSCONI HAS DECIDED THAT IN KEEPING WITH THE NICE TREATY, BOTH EUROPEAN COUNCILS DURING THE ITALIAN PRESIDENCY WILL BE HELD IN BRUSSELS. TWO OFFICES IN THE MFA WOULD BE ESTABLISHED IN SEPTEMBER OF 2002 TO HANDLE PRESIDENCY ISSUES. ONE WOULD BE A "PROTOCOL" OFFICE HEADED BY LEONARDO VISCONTE DI MADRONE, ASSISTED BY 2 OR 3 DIPLOMATS PLUS A SUPPORT STRUCTURE. THIS OFFICE WOULD BE RESPONSIBLE FOR PLANNING MEETINGS (INCLUDING U.S./EU MEETINGS) AND COMMUNICATING WITH MEMBER STATES AND OTHER INTERESTED PARTIES ON UPCOMING EVENTS. THIS WILL BE A "TERRIBLE JOB," ADMITTED BUCCINO, GIVEN THE ITALIAN BUREAUCRATIC PREDILECTION TO DELAY DECISIONS TO THE LAST MINUTE. ¶12. (SBU) THE OTHER OFFICE WOULD BE CHARGED WITH PRODUCING SUBSTANTIVE DOCUMENTS, HORIZONTAL COORDINATION OF POSITIONS WITHIN THE GOI, AND COORDINATING COREPER ACTIVITIES. THE OFFICE WILL BE HEADED BY VINCENZO GRASSI. BIOGRAPHIC SKETCHES OF VISCONTI DI MADRONE AND GRASSI FOLLOW: LEONARDO VISCONTI DI MODRONE: BORN IN MILAN IN 1947. GRADUATED FROM MILAN'S PRIVATE AND PRESTIGIOUS BOCCONI UNIVERSITY IN 1970, IN ECONOMICS. JOINED THE FOREIGN SERVICE IN 1971. WORKED IN POLITICAL AFFAIRS OFFICE IN THE MFA. TO THE ITALIAN MISSION TO THE UN, NYC, 1974-1977. TO CAIRO, 1977-1981. TO PALAZZO CHIGI (OFFICE OF THE DIPLOMATIC ADVISOR TO THE PM),1981-1988, WAS PROMOTED TO DEPUTY DIPLOMATIC ADVISER TO THE PM WHILE THERE. TO LONDON, CONFIDENTIAL PAGE 04 ROME 03313 02 OF 02 051554Z AS FIRST COUNSELOR, 1988-1992. TO PALAZZO CHIGI AS FOREIGN AFFAIRS PROTOCOL ADVISER, 1992-1997. TO VIENNA AS FIRST COUNSELOR, 1997-2002, WAS PROMOTED O MINISTER COUNSELOR WHILE THERE. TO THE MFA'S PLITICAL BUREAU, EARLY 2002-TO DATE, ON SPECIAL ASIGNMENTS. HAS THE PERSONAL RANK OF MINISTER. VINCENZO GRASSI: BORN IN NAPLES IN 1959. GRADUATD FROM THE UNIVERSITY OF NAPLES IN 1982, LAW DEGRE. JOINED THE FOREIGN SERVICE IN 1984, SPECIALIZD IN COMMERCIAL ISSUES. WORKED IN THE ECONOMIC BREAU. ATTENDED FRANCE'S PRESTIGIOUS ENA (ECOLE AZIONALE D'ADMINISTRATION) IN PARIS, 1985-1986. T CAIRO, 1987-1988, (COMMERCIAL). TO ITALIAN MISSIN TO EC BRUSSELS, 1990-1994 (COMMERCIAL). TO THEMFA'S ECONOMIC BUREAU, 1994-1995. TO PARIS AS CUNSELOR, 1998-TO DATE. HAS THE PERSONAL RANK OFCOUNSELOR. SEMBLER CONFIDENTIAL > 2002ROME03313 - Classification: CONFIDENTIAL