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)

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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
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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
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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

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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
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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.

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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,
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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

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2002ROME03313 - Classification: CONFIDENTIAL