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