GEOANA WINS SOCIAL DEMOCRATIC PARTY PRESIDENCY;

C O N F I D E N T I A L SECTION 01 OF 03 BUCHAREST 001003

SIPDIS

STATE DEPT FOR EUR/NCE - WILLIAM SILKWORTH
STATE DEPT ALSO FOR INR/B

E.O. 12958: DECL: 04/22/2015
TAGS: PGOV PREL KDEM SOCI ECON PINR RO
SUBJECT: GEOANA WINS SOCIAL DEMOCRATIC PARTY PRESIDENCY;
DEMOCRACY COMES TO ROMANIA'S OPPOSITION

REF: BUCHAREST 982

Classified By: Political Section Chief Robert S. Gilchrist for Reasons
1.4 B and D


1. (C) Summary. In a move that surprised the media and
nearly all of Romania's political class, former Foreign
Minister Mircea Geoana won the presidency of Romania's
opposition Social Democratic Party (PSD) in the early hours
of April 22 at a dramatic party congress. Other reformers
within the party -- including former Interior Minister Ioan
Rus -- also gained key slots in the leadership. Although
former President Ion Iliescu was the frontrunner up until a
day before the vote, his gaffes during the party congress as
well as the first-ever use of a secret ballot inside the
party turned the tide of delegates against him. Although
some of the PSD old guard remain in the top tiers, delegates
declined to elect several of the most controversial PSD
heavyweights to senior positions. Iliescu's involuntary exit
signals the end of an era, and marks the commitment of
mainstream PSD members to break with the party's communist
past. End Summary.

"Comrade" Iliescu Stumbles
--------------

2. (C) More than 1500 PSD delegates gathered April 21 in
Bucharest's Palace Hall for the party's biannual congress.
The congress was the first major meeting of the rank-and-file
since the PSD's fall from power after the defeat of PSD
candidate and former Prime Minister Adrian Nastase in
December 12 presidential elections. In the weeks leading up
to the congress, PSD heavyweights had attempted to
choreograph an outcome for the congress in backroom meetings
and elaborate power sharing arrangements. Iliescu was slated
to be voted party President and Nastase as Executive
President, with other key party "barons" retuned to senior
leadership slots. Nonetheless, in the words of one PSD
insider, events during the congress "turned these
arrangements upside down." The PSD was clearly "gasping for
democratic air..... it finally arrived."


3. (C) The backroom deals began to crumble in the Congress'
first hour when Iliescu announced to the assembled delegates
that we would give the floor to "Comrade" Nastase, a taboo
term since the fall of communism. Although he quickly
retracted his slip of the tongue, the delegates reacted with
a collective gasp of astonishment, shocked laughter and a
buzz of conversation that continued for the next several
minutes. A few minutes later, Nastase attempted to make
light of Iliescu's faux pas by addressing his remarks to
"friends, colleagues and comrades." Delegates laughed
appreciatively, but Iliescu's untoward remark hung in the air
for the rest of the Congress. Some delegates remarked to
PolOffs that Iliescu -- who chaired most of the proceedings
-- strangely came across throughout the congress as an odd
mix of a "befuddled grandfather" and "old school party
apparatchik." His calls for votes by acclamation on
organizational matters even resembled the structure of a
Ceausescu era party meeting, with no calls for dissenting
votes or abstentions. While many delegates expected that
former FM Geoana would receive a respectable showing in his
challenge against Iliescu for the party presidency, it was
Iliescu's poor performance during that day that tipped the
balance firmly in Geoana's favor.


4. (C) The nail in the coffin for Iliescu's bid to return to
the helm of the party he founded was his wooden delivery in
his two addresses to the assembled delegates. He offered no
new vision for a party still trying to define itself after
its December defeat and beleaguered by continued allegations
of corruption and communist old-think. Rather than imparting
inspiration and wisdom as some PSD contacts said they had
hoped to hear, he simply said he had "no personal ambitions"
and claimed to have the experience, authority, and morality
necessary for returning to the helm of the PSD. He also
called himself a "coagulant" who could bring the party
together. Instead, as one PSD contact joked to PolOff, his
support continued to "hemorrhage" throughout the day and
evening.


5. (C) In stark contrast, a youthful and energetic Geoana
delivered, in the words of Nastase, "the best speech of his
political career." Geoana stated that he had delayed
throwing himself into the competition for the party
presidency because he expected a "top-down reform" that never
came. He said now was the time to begin a "bottom-up
transformation" to revitalize the party, and he promised
delegates that he and other key reformers could effect that
change. He referred to the previous weeks as "devastating"
for the party, due partially to a growing scandal involving
Syrian Businessman Omar Hayssam and some of PSD's most senior
leaders. (Note: Credible reports tie Hayssam to the
kidnapping of three Romanian news people in Iraq in a
complicated scheme to launder money and/or escape judicial
attention for various economic crimes.) He hoped for a PSD
that "members would be proud of again" and urged delegates to
end their current inertia in favor of implementing needed
change. He extended an olive branch to Iliescu, assuring him
that he would always have an important place in the party.
However, he criticized his rival for failing to willingly
step down in favor of the next generation.


6. (C) Geoana's calls for reform did not occur in a vacuum;
he was preceded by a series of like-minded speakers who
called for reform in the party, including his ally and former
Interior Minister Ioan Rus, who proclaimed "a lack of vision
is worse than blindness.... we need leaders who transform
vision into action." He maintained that PSD "could not
afford to move backwards." Rus also pointed out that PSD was
failing to attract young voters, including the children of
its own members. Rus' call for reform, coupled with his
private support for Geoana, proved to be critical in turning
the crowd.

A Sea Change for PSD
--------------

7. (C) The rising tide against Iliescu turned into a tsunami
when key party leaders began to shift their support towards
Geoana throughout the day. A key player was Mitrea, who has
a strong local base in Vrancea country and developed an
extensive network of friends and allies during his tenure as
Transport Minister in the last government. Mitrea and his
base were miffed by Iliescu's refusal to support the latter's
candidacy for the party's number three slot of Secretary
General. Mitrea -- along with several local leaders in his
camp -- reportedly openly urged delegates in the lobby of the
convention site to vote for Geoana. According to one
contact, Mitrea easily swayed support towards Geoana by as
much as 200-300 votes. At the same time, Rus' group,
comprised loosely of delegates from ten Transylvania
counties, brought several hundred additional votes for
Geoana. Rus also urged his delegates to support Mitrea, in
exchange for Mitrea's support for Geoana. Meanwhile, one PSD
insider told post that PSD stalwarts -- Viorel Hrebenciuc,
Octav Cozmanca, Dan Matei Agathon, and Dan Ion Popescu --
attempted to keep together alliances that they had relied on
since the early 1990's. However, their pleas "fell upon deaf
ears," as many delegates and emerging leaders saw them as
liabilities for the party.

Secret Ballot "Liberates" Party

SIPDIS
--------------

8. (C) At the same time, the implementation of a secret
ballot was also fundamental in the outcome of the vote. The
decision to move in this direction came as result of immense
pressure after the December defeat to present a clear image
of internal democratic reform. All previous elections for
the PSD leadership had been orchestrated in backrooms without
competition. PSD contacts confess openly that if that had
been the formula again, Iliescu would have not even been
challenged. In a speech at the congress, former PSD
vice-president Sorin Oprescu asserted that the secret ballot
was fundamental for party reform, as from then on no one
could predetermine "who, how or what" the party would be. He
compared the institution of secret ballots with the
liberation of "slaves on a plantation." While various
leaders were seen hovering by voting booths to pressure
delegates, several PSD contacts told post that this was by
far the most free internal vote the PSD rank-and-file have
ever had.

Others At The Top
--------------

9. (C) Beyond Goeana's surprise victory, key reformers made
headway in gaining other important positions in the new
leadership structure, including seven of the eleven party
vice presidencies. These include Rus; former Finance
Minister Mihai Tanasescu; former Agriculture Minister Ilie
Sarbu; former IT Minister Dan Nica; former party spokesperson
Titus Corlatean; and leader of the PSD Women's Organization
Rovana Plumb. However, several old faces remain. In fact,
the number two and three slots in the party will be filled by
Nastase as Executive President and Mitrea as Secretary
General. Mitrea is closely associated with the old guard,
whereas Nastase maintains important links both with party
stalwarts and reformists. In additions, four solid Iliescu
allies were among those elected to the eleven party vice
president slots. These include respected ex-DefMin Ioan
Mircea Pascu; Senate President Nicolae Vacaroiu; former
Chamber of Deputies President Valer Dorneanu; and, Iliescu
protege and longstanding adviser Corina Cretu.


10. (C) However, some of the PSD's most controversial
longstanding political operatives, including several Iliescu
allies, either failed to run for a VP slot or did not muster
enough votes to win a position. Failed candidates include
Bacau-based behind-the-scenes power broker Viorel Hrebenciuc,
longstanding Iliescu crony and former national security
adviser Ioan Talpes, Iliescu ally Dan Ioan Popescu, and
ex-Tourism Minister Agathon. All four have been publicly
linked with high profile corruption scandals. Perhaps
sensing the handwriting on the wall, several other prominent
PSD pols and longtime Iliescu allies declined to run for VP
posts: Octav Cozmanca, Serban Mihaelescu, Ion Salcanu, and
Doru Ioan Taracila.

Comment: What a Difference a Day Makes
--------------

11. (C) Many analysts have likened Geoana's surprise
ascension in the PSD to the December 12 surprise victory of
center-right President Traian Basescu. Both events are
milestones in Romania's democratic development, representing
a clear break with the country's communist past. For the
first time ever, the majority of PSD senior leaders do not
track their roots to the senior levels of the former
communist party. Geoana, Rus, and other reformers will
continue to face entrenched opposition from some segments of
the old guard, notably Mitrea and Nastase who remain in
powerful positions. Also not to be underestimated is the
economic and political clout of entrenched local
organizations. Nonetheless, the reformers' victory means the
PSD will now be better positioned to address the allegations
of corruption and stagnation that have plagued the party for
more than a decade. More fundamentally, these fresh but
well-known faces may also ensure the PSD survives as a
political force for the next elections and beyond.


12. AmEmbassy Bucharest's Reporting telegrams, as well as
daily press summaries, are available on the Bucharest SIPRNet
website: www.state.sgov.gov/p/eur/bucharest
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