Iceland Appoints First Female Foreign Minister;

UNCLAS REYKJAVIK 000210 SIPDIS SENSITIVE, SIPDIS E.O. 12958: N/A TAGS: PGOV PREL MARR IC SUBJECT: Iceland Appoints First Female Foreign Minister; Incoming PM Geir Haarde Will Continue to Lead Defense Talks REF: Reykjavik 196 ¶1. (U) Summary: Outgoing PM Asgrimsson and incoming PM Haarde announced 6/10 results of their talks regarding a new Icelandic cabinet to take office 6/15: current Minister of Industry and Commerce Valgerdur Sverrisdottir, an international relations neophyte, will become Foreign Minister. Haarde will, however, continue as Iceland's highest official conducting defense negotiations with the U.S. Both Haarde and Sverrisdottir will meet with the NATO Secretary General during the latter's planned 6/15 visit to SIPDIS Iceland. End summary. -------------- We have the envelope... -------------- ¶2. (U) The leaders of Iceland's Independence Party (IP) and Progressive Party (PP) coalition government announced June 10 their decisions regarding a cabinet reshuffle. Prime Minister Halldor Asgrimsson's and Foreign Minister Geir Haarde joint statement culminated a week of intense intra- governmental lobbying and media and civil service speculation about potential fall-out from Asgrimsson's June 5 resignation announcement (reftel). On June 15 FM Haarde will become the new Prime Minister, while Valgerdur Sverrisdottir (PP) will become the Republic's first female Minister for Foreign Affairs. The IP gives up one ministerial seat -- the Ministry for the Environment -- to the PP, thus reverting to the original coalition agreement forged after 2003 parliamentary elections regarding equal division of ministries between the two parties. -------------- And the winners are... -------------- ¶3. (U) As of June 15 the Icelandic Ministerial line-up will be as follows: Prime Minister--Geir H. Haarde (IP) Foreign Minister-- Valgerdur Sverrisdottir (PP) Minister of Finance--Arni M. Mathiesen (IP) Minister of Justice--Bjorn Bjarnason (IP) Minister of Agriculture--Gudni Agustsson (PP) Minister of Communications--Sturla Bodvarsson (IP) Minister of Fisheries--Einar Kristinn Gudfinnson (IP) Minister for the Environment and Nordic Cooperation-Jonina Bjartmarz (PP and first-time minister) Minister of Industry and Commerce--Jon Sigurdsson (PP and first-time minister) Minister of Health and Social Security--Siv Fridleifsdottir (PP) Minister of Social Affairs--Magnus Stefansson (PP and first- time minister) Minister of Education, Science and Culture--Thorgerdur Katrin Gunnarsdottir (IP) ¶4. (SBU) Sverrisdottir has been a member of parliament since 1987 (and alternate member 1984-1987); and Minister of Industry and Commerce since 1999, as well as Minister for Nordic Co-operation 2004-2005. As Minister she has been a tireless advocate for Iceland's increased industrialization. Among government bureaucrats she has established a solid reputation for being serious, hardworking, competent, and committed to the government's highly successful economic liberalization process. ¶5. (U) In the face of vocal opposition from environmentalists Sverrisdottir has strongly backed efforts by Alcoa and Century Aluminum of the U.S. to establish and expand their production facilities in Iceland. Her strong advocacy for the aluminum projects has slowly eroded her popularity, and in a recent Gallup poll she ranked only seventh of the 12 ministers in popularity. Protesters at a march organized by environmentalists for municipal election day, May 27, carried signs that read, "Drown Valgerdur - Not the Highlands." Sverrisdottir later filed a police complaint alleging that the slogans amounted to an incitement of violence against herself and her three daughters. ¶6. (SBU) As Minister of Industry and Commerce Sverrisdottir dabbled little in foreign affairs - and aside from language studies she has no relevant academic background for the job. She speaks halting, though passable, English. Perhaps because she lacks confidence as a diplomat, or perhaps as part of an inter-party deal that won her the prestigious post, Sverrisdottir announced June 11 that she would leave defense negotiations to Haarde. She also disavowed any interest in the PP chairmanship. -------------- NATO SYG Visit -------------- ¶7. (SBU) NATO Secretary General Jaap de Hoop Scheffer is scheduled to meet June 15 with high-level Icelandic officials, to include Sverrisdottir and Haarde. While Sverrisdottir will presumably have her hands full just coming to grips with an unfamiliar portfolio, Haarde will doubtless use the meeting to press for Alliance support for a "robust and visible" defense for Iceland. ¶8. (SBU) Comment: The choice of Sverrisdottir, while unforeseen by pundits (who favored IP stalwarts more experienced in foreign affairs),is win-win-win for the Progressives: -- They will control the country's second most powerful ministry and the patronage that comes with it (not insignificant for a party struggling to hold on to membership). -- By making the argument that continuity is important, they leave the loser (as it now appears from a GOI perspective) defense portfolio to Haarde and the IP. -- After an era in which Asgrimsson was seen as promoting loyal young men over more qualified women, the PP will now get the credit for finally breaking through the socially conservative MFA's glass ceiling. In terms of U.S. interests, this appointment is also a boon, as in her performance at Commerce and Industry Sverrisdottir has demonstrated sympathy for U.S.-Icelandic business interests and vision in advancing them. End comment. van Voorst