EUR PDAS VOLKER ENGAGES EU

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 003353 SIPDIS E.O. 12958: DECL: 09/14/2015 TAGS: PGOV PREL EAID VE CU EUN USEU BRUSSELS SUBJECT: EUR PDAS VOLKER ENGAGES EU REF: A. A) USEU TODAY 09/09/05 ¶B. B) USEU TODAY 09/08/05 Classified By: USEU POLOFF TODD HUIZINGA, FOR REASONS 1.4 (B) AND (D) ¶1. (C) SUMMARY: In his September 7-8 EU-related meetings in Brussels, EUR PDAS Kurt Volker stressed the need for a pragmatic U.S.-EU partnership, based on our common values, to solve problems globally. With all of his interlocutors, he discussed the importance of working together to promote democracy and economic reform in the broader Middle East -- encouraging the EU especially to participate in the Fund/Foundation for the Future. He also stressed advancing democracy in Europe and Central Asia, and increasing U.S.-EU cooperation on Venezuela and Cuba. With the Commission officials covering transatlantic relations, Volker discussed upcoming meetings and follow-up to the June U.S.-EU summit. EU interlocutors were receptive to initiating closer consultations on promoting democracy and other common interests in the Middle East and globally, but reticent about contributing to the Fund/Foundation. END SUMMARY. -------------- WORKING TOGETHER IN THE BROADER MIDDLE EAST -------------- ¶2. (C) Volker's top priority was soliciting greater EU engagement jointly with the U.S. in the Broader Middle East and North Africa. He discussed U.S. and EU programming and priorities in the Middle East in depth with European Commission (EC) Deputy Director-General Michael Leigh and Christian Leffler, EC Director for the Middle East and South Mediterranean. Volker said that the EU's Barcelona Process and U.S. assistance efforts showed the U.S. and EU were going in the same direction. The Fund for the Future and the Foundation for the Future offered important opportunities for the U.S. and EU to supplement their efforts by doing something together. This would send an important political signal about our shared determination to support economic reform and promote democracy in the Middle East. ¶3. (C) Leigh insisted that the EU catchphrase for cooperation with the U.S. on assistance to the Middle East remained "distinct but complementary." He did not foresee the EC contributing directly to the Fund or the Foundation, as the EC's own funding instruments had "their own momentum." This was especially the case because entirely new funding instruments were now being set up as a framework for EC development assistance beginning in 2007. Getting agreement from all of the EU institutions and member states on the nature of these instruments, and now planning programming for the first time under the new regime, would continue to dominate the EC funding agenda for the Middle East. ¶4. (C) That said, Leigh added, the EC was now programming their FY 2006-07 funds for the Middle East. At this point there was still ample time for consultations with the U.S. in order to avoid overlap, ensure complementarity of funding, and coordinate on priorities. Volker welcomed the initiative for deepening and broadening cooperation, particularly in the democracy and education spheres. Leigh also described some of the EC's thinking for rewarding political reform in the region, by making extra funding available to countries that make progress on the democracy and human rights components of their Action Plans with the EU. ¶5. (C) In a later meeting with Karel Kovanda, the EC Deputy Director-General responsible for transatlantic relations, Volker returned to the theme of the political and symbolic importance of EU involvement in the Foundation/Fund for the Future. Kovanda agreed, but, with RELEX North America Unit Chief Gunnar Wiegand, echoed Leigh's comments about the EC's and member states' reticence about participating in a "common funding instrument" with the U.S., especially since the EC's new development assistance funding instruments were now being constructed. Volker and USEU Charge McKinley stressed that a contribution would not affect other EU funding and could only make all of our efforts more effective by underlining U.S.-EU solidarity in promoting economic and political reform in the Middle East. Kovanda said he was sympathetic, but he remained non-committal. He said he would pass the message to Commissioner Ferrero-Waldner. -------------- EC PREPARING AGREEMENT WITH IRAQ -------------- ¶6. (C) On Iraq, Leigh said the EC was still moving ahead with plans to establish an EC Mission (Delegation) in Baghdad, but was still working through budgetary and security hurdles. Leigh said also that the EC would prepare for presentation to the member states, in the course of this fall, a set of directives that would govern negotiations on a trade agreement with Iraq that would include a development assistance component. The EU would sign the agreement only with a constitutionally elected Iraqi government, but the negotiating directives were being worked out now so that the pact could be finalized as soon as possible after an Iraqi government is in place -- in order to send a political signal of support. -------------- EU AND GULF STATES -------------- ¶7. (C) Since the EU's Barcelona Process and European Neighborhood Policy involve principally the countries that ring the Mediterranean, Volker asked Leigh and Leffler about the EU's relations with the Gulf states. Leffler said relations were essentially economic, but that the EU was looking into how to broaden the relationship to include regional security, political reform and related issues. However, regional sensitivities regarding the EU's tendency to look at the internal political situation in partner countries remained strong. -------------- ADVANCING DEMOCRACY IN EUROPE -------------- ¶8. (C) In his meeting with select EU Political and Security Committee (PSC) ambassadors, Volker praised the EU role in promoting democracy and economic reform in Ukraine, Georgia and the Balkans. He said the prospect of EU membership had proven an important incentive for reform in those countries, and urged the EU to keep the door open. For similar reasons, he said, the U.S. favored further NATO enlargement, with the prospect of NATO membership open to all those who fulfill the criteria. On OSCE reform, Volker said the U.S. would insist on safeguarding the OSCE's primary area of strength -- promotion of democracy and respect for human rights, and its election observation activities, under the umbrella of the OSCE's Human Dimension. -------------- SUMMIT FOLLOW-UP -------------- ¶9. (C) EC Director for U.S. Affairs Richard Wright told Volker the EC was looking forward to a good Senior-Level Group (SLG) on September 19, and wanted to streamline preparation for future summits to avoid the large number of declarations that emerged at the last summit. The Commission was working hard to complete its draft work program on implementing the economic declaration by the end of the month, and strongly supported the proposal of a high-level economic "event" in December. Wright raised two specific bilateral concerns: the upcoming report on visa reciprocity which will have to deal with the sensitive issue of exclusion of ten EU member states from the visa waiver program, and concerns about France, Italy and Austria's inability to meet the new (extended) biometric deadline. Wright also suggested the next East Asia Strategic Dialogue meeting should be an SLG-level affair concentrating on economic issues; he said the EU was waiting for confirmation of this idea from the U.S. side. Finally, Wright requested a U.S. response to the proposal of EC President Barroso that a U.S.-EU High-Level Environmental Dialogue be launched. -------------- IMPROVING COOPERATION ON VENEZUELA, CUBA -------------- ¶10. (C) In his meeting with Kovanda, Volker said the U.S. would like to work together more closely with the EU on Cuba and Venezuela. On Cuba, we would like to see the EU do more for the democratic opposition, and build a consensus for a democratic transition on the island. On Venezuela, the U.S. would be approaching the EU to discuss how to deal with common concerns about the weakening of democracy and Chavez's activities in the region. Kovanda underscored Commissioner Ferrero-Waldner's interest in the region, and in coordination with the U.S. ¶11. (U) This message has been cleared by EUR PDAS Kurt Volker. MCKINLEY