BMENA FUND FOR THE FUTURE: ITALY SAYS NO EIB

UNCLAS ROME 003598

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EAID EFIN EINV EU IT PGOV PHUM PREL
SUBJECT: BMENA FUND FOR THE FUTURE: ITALY SAYS NO EIB
DECISION ON OCTOBER 27

REF: REF A: SECSTATE 189774 REF B: ROME 3228


1. (SBU) Econ MinCouns discussed European Investment Bank
(EIB) participation in the Fund for the Future (REF A) on
October 25 with Ignazio Angeloni, Finance Ministry Director
General for International Finance Relations, and Stefania
Bazzoni, Office Director for EIB Affairs. Both thought that
the EIB participation through the Facility for
Euro-Mediterranean Investment and Partnership (FEMIP) could
not be approved by a decision of the Board of Directors
alone. Rather, an EIB donors meeting - as occurs
periodically on the margins of the EIB Board meetings --
would be required, and the first opportunity for such a
donors gathering would be November 22. Consequently, in the
Italian view, there could be a general discussion of the Fund
for the Future on October 27, but no final decision on
participation. Angeloni further noted that the FEMIP Trust
Fund currently only has 20 million euros, so that any
participation would be a "symbolic" sum, compared to the USG
contribution.


2. (SBU) While clearly interested in the Fund for the
Future, Angeloni made clear that Italy believes that a great
deal more discussion of Fund mechanics and other specifics is
necessary. He said, for example, he would welcome further
detail on the advantages of the Fund over existing mechanisms
to support economic growth in the Middle East. He also
wondered how the Fund for the Future would coordinate with
the UK's initiative for economic growth in the West
Bank/Gaza. Bazzoni noted that program expansion beyond Egypt
and Morocco would be desirable. Angeloni also asked if other
Mediterranean countries had agreed to provide funds.


3. (SBU) Angeloni concluded by saying that, even though no
action could be taken at the October 27 Board meeting, Italy
could assist in "softening" the EIB to pave the way for
eventual transfer of FEMIP funds to the Fund.


4. (SBU) When we contacted the Foreign Ministry again on
the Fund, Office Director for the Middle East and
Mediterranean (DG for Development Cooperation) Federica
Ferrara-Bravo stated that their position remained that
reported in Ref B: political support, but no firm decision
yet on financial participation.
SPOGLI