Identifier
Created
Classification
Origin
06BUCHAREST1644
2006-10-25 16:44:00
CONFIDENTIAL//NOFORN
Embassy Bucharest
Cable title:  

PACKAGE DEAL: NEW ROMANIAN DEFMIN AND EUROPEAN COMMISSIONER NAMED

Tags:  PGOV PREL MARR SOCI RO 
pdf how-to read a cable
VZCZCXRO2376
OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHBM #1644/01 2981644
ZNY CCCCC ZZH
O 251644Z OCT 06 ZDK ALL CTG NUM SVCS -----
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5438
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEKJCS/SECDEF WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 BUCHAREST 001644 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EUR/NCE AARON JENSEN

E.O. 12958: DECL: 10/24/2016
TAGS: PGOV, PREL, MARR, SOCI, RO
SUBJECT: PACKAGE DEAL: NEW ROMANIAN DEFMIN AND EUROPEAN
COMMISSIONER NAMED

REF: A) BUCHAREST 01450 B) BUCHAREST 01600

BUCHAREST 00001644 001.3 OF 002


Classified By: DCM Mark Taplin for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 BUCHAREST 001644

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EUR/NCE AARON JENSEN

E.O. 12958: DECL: 10/24/2016
TAGS: PGOV, PREL, MARR, SOCI, RO
SUBJECT: PACKAGE DEAL: NEW ROMANIAN DEFMIN AND EUROPEAN
COMMISSIONER NAMED

REF: A) BUCHAREST 01450 B) BUCHAREST 01600

BUCHAREST 00001644 001.3 OF 002


Classified By: DCM Mark Taplin for reasons 1.4 (b) and (d).

1. (C) Summary: Following President Basescu,s October 25
visit to Victoria Palace, Basescu and Prime Minister
Tariceanu hammered out an agreement to give the Democrats
their choice for Minister of Defense, while letting the
Liberals name the European Commissioner. Subsequently,
Minister of Defense Teodor Atanasiu offered his resignation,
Romania nominated Liberal executive member Varujan Vosganian
as the next European Commissioner, and the PD's Sorin
Frunzaverde as DefMin. This tradeoff appears to give Basescu
firm control over the MOD. End Summary.

2. (C) President Basescu paid an unusual visit to Prime
Minister Tariceanu on the morning of October 25, ending two
major disputes between the two palaces at one stroke: who
controls the Defence Ministry and who nominates the next
European Commissioner? The results of the negotiations
became immediately apparent as, in rapid procession, DefMin
Teodor Atanasiu resigned, PNL,s Varujan Vosganian was
nominated for EU Commissioner, and PD,s Sorin Frunzaverde
was named as the new DefMin.

Anastasiu Throws in the Towel
--------------

3. (C) Suspended Minister of Defense Teodor Atanasiu
announced his resignation in a press conference after a
weekly government meeting, declaring that he wanted to put to
an end the conflict between himself and President Basescu.
Atanasiu said his resignation was in the "best interests" of
the military since it was currently in a &crisis.8 In press
statements, the outgoing DefMin accused the president of
infringing the law by refusing to revoke the decree that led
to his suspension 44 days ago (reftel A). Atanasiu also
opined that he thought that it was impossible for a member of
the National Liberal Party to develop a good working
relationship with the President.

4. (C) President Basescu had earlier announced on October 24
his refusal to revoke Atanasiu,s suspension, ind
icating he
would instead approve the High Court Prosecutor,s launch of
a new investigation into Atanasiu,s alleged abuse of office
and corruption charges, filed by former Chief of the General
Staff Eugen Badalan on September 25. Since the Prime
Minister,s and Atanasiu,s surprise demand for the
withdrawal of Romanian troops from Iraq in late June,
tensions between the two palaces over the Defense Ministry
have been highly visible. President Baescu sidelined Atanasiu
in favor of CHOD Badalan on official visits, and the DefMin
retaliated with a corruption investigation that resulted in
Badalan,s resignation (ref B). In turn, the President
approved a corruption investigation of a sitting cabinet
minister, leading the PM to ask for Atanasiu,s resignation.

European Commissioner Also Named
--------------

5. (C) According to some PNL members, Tariceanu finally
agreed to trade the Ministry of Defense portfolio to the
Democratic Party in exchange for the President,s endorsement
of the government,s nomination for European Commissioner.
PNL Senator Varujan Vosganian was the government,s
nomination for the Commission slot, but Basescu reportedly
opposed the nomination, preferring instead FM Mihai-Razvan
Ungureanu or Minister of Integration Anca Boagiu.

6. (C) At the beginning of the weekly government meeting, PM
Tariceanu announced that PNL Senator and party spokesperson
Varujan Vosganian was the government,s nomination for
European Commissioner. One hour later, PD leaders nominated
PD vice-president Sorin Frunzaverde to replace Atanasiu as
Minister of Defense. PD Vice President Videanu confirmed
publicly it was a political decision to give the MOD to the
Democratic Party in exchange for the Liberals to nominate the
European Commissioner. PM,s Chief of Staff Mihnea
Constantinescu in a conversation with Polcouns characterized
the negotiations as a &Noisy day, but with a good outcome,8
adding that &both were good choices.8 Vosganian appeared on
television to say that he was honored and indicated he would
travel to Brussels that night.

7. (C) Bio Note on Incoming European Commissioner Vosganian:

Varujan Vosganian was nominated by PM Calin Popescu-Tariceanu
to be the Romanian member of the European Commission on

BUCHAREST 00001644 002.4 OF 002


October 25. Vosganian is a member of the National Liberal
Party since 2003, when the party he initiated (The Union of
Right-Wing Forces) merged into the PNL. Vosganian is the
party spokesperson and an alternate member to the PNL
Executive Committee, one of the top executive party bodies.
Vosganian is the co-author of the economic chapters of the
PNL-PD governing program.

Vosganian has been an important parliamentary player in the
current legislative period in pushing forward the DA Alliance
(PNL/PD) agenda on economic reform. As a PNL Senator,
Vosganian,s support was crucial to the Alliance,s
introduction of a flat tax (in 2004) that helped bring in
more revenues from the gray and black economy into state
coffers.

First as a Deputy and now Senator Vosganian has been
consistently a professional, technical and competent MP on
economic issues in the Romanian Parliament. He is Chair of
the Senate,s Economic Committee and also Deputy PNL Leader.
He is a fierce Tariceanu loyalist and supported the PNL call
for a pullout from Iraq (although privately he admitted that
the manner in which it was raised was unfortunate)

Vosganian was elected in November 2004 in the Romanian
Senate, representing the PNL in Iasi county. He chaired the
Budget, Finance and Banking Committee in the Senate.
Vosganian has a long parliamentary career, beginning in 1990
as the representative of the Armenian minority in the
Romanian Chamber of Deputies. He was reelected as
representative of the Armenian minority in 1992. In 1996, he
was again elected to the Chamber of Deputies as a Senator for
Iasi representing the Romanian Alternative Party (later
renamed the Union of Right-Wing Forces).

Vosganian has a degree in economics (1982) and mathematics
(1991). He holds a PhD in economics since 1998 and wrote
books and articles on Romanian economy and finances.
Vosganian is the founder of the Romanian Society for Economy
and is a member of the International Experts Council from the
European center for Political Studies (Brussels). He is an
associate professor at the Academy for Economic Studies.
Vosganian is also a writer and a poet and was a year ago
elected the executive president of the Romanian Writers,
Union.

Vosganian has a bright analytical mind and is fluent in
English and French. He also has a macro-economic vision that
is very free-market oriented. His liberal economic views
minimize the state,s role in the economy. He has good,
solid relationships in the Romanian finance-banking-capital
markets. He genuinely listens to opinions in one-on-one
discussions. He enjoys discussing and debating. He is
pro-American, but even more pro-European, which could make
him an important bridge figure for the USG in the future.

His wife, also of Armenian descent, is a fine composer of
contemporary, modern symphonic music. His parents fled from
Turkey during the early twentieth century. Vosganian is 48,
is married and has a daughter. He reportedly favors Jack
Daniels Whiskey.


8. (SBU) Bio Note on incoming Minister of Defense
Frunzaverde:

Sorin Frunzaverde, aged 46, is a former Defense Minister and
prominent figure in the Democratic Party (PD). He has been
president of the county council of Caras-Severin, a county
south-west of Bucharest, since 2004, an elected position. He
also holds the position of PD vice president and represented
the PD in Parliament between 2000 and 2004. Within the PD,
Frunzaverde supported broading the party,s political profile
and was the PD negotiator for admittance to the European
Popular Party.

An engineer by education, he holds a doctorate in economics
and is a PhD candidate in military sciences. Between 1996
and 2000, under the center-right Constantinescu presidency,
Frunzaverde held the positions of Minister of Waters,
Forests, and Environment Protection (1997-1998),Minister of
Tourism (1998),and Minister of Defense (for eight months in
2000).

Funzaverde authored a book on European security and
integration; he speaks English and German. He is married and
has one child.
Taubman