ITALY'S COMMUNIST CHAMBER LEADER WELCOMES USG

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001518

SIPDIS

E.O. 12958: DECL: 05/17/2016
TAGS: IT PGOV
SUBJECT: ITALY'S COMMUNIST CHAMBER LEADER WELCOMES USG
CONTACT


Classified By: Ambassador Ronald P. Spogli, reasons 1.4 (b) and (d)

Summary
--------------


1. (C) Communist Renewal leader Fausto Bertinotti May 17
warmly welcomed his first official contact, as Italy's new
Chamber of Deputies president, with the US Ambassador. He
initiated an animated discussion of Italy's economic
problems, and expressed cautious optimism that the new
government could pare the country's budget deficit. He was
less confident about restoring overall competitiveness, and
put down a marker that the country's "social model" could not
be dismantled in the name of reform. On foreign policy,
Bertinotti expected the government to pursue Iraq troop
withdrawal plans put in place by the outgoing government, and
expressed concern that the Afghanistan commitment was too
open-ended; perhaps a review of goals and objectives was
needed. He acknowledged the gravity of the Iranian nuclear
issue, and said deterrence was required, but a military
solution would be disastrous. He felt the Palestinian issue
required more attention; the European Union's sins here had
been less of commission than omission. Islamic
fundamentalism was not only a political, but a cultural
phenomenon; Italy could be a bridge between Europe and the
Middle East. End summary.


Communist Renewal Chief Puts Out Welcome Mat
--------------


2. (C) Ambassador May 17 paid an introductory call on
Italy's new Chamber of Deputies president, Fausto Bertinotti,
the Communist Renewal Party leader. Also attending were: Ugo
Zampetti, Chamber of Deputies Secretary General; Guglielmo
Romano, Chief of Secretariat to Chamber President Bertinotti;
and Pol M/C. The meeting lasted 45 minutes, 15 minutes over
the allotted time for the courtesy call. Bertinotti warmly
welcomed the Ambassador to his office, and arranged press
coverage of both the beginning and end of the meeting.


3. (C) Bertinotti, a Milan native, was aware that the
Ambassador had both worked in Milan and studied labor
migration patterns in the 1970s. He commented that the 1960s
and 1970s were the period of Italy's most intense postwar
development, and the labor flows from south to north were
part of a major transformation of north Italian cities in
that period. The Ambassador agreed, and noted that today,
too, was a period of significant transformation.


4. (C) The Ambassador said relations were close and
longstanding between the US and Italy, and we were confident
this would continue regardless of whether the government was
left or right. The agenda of our bilateral cooperation was
long, whether economic and trade issues, social and cultural
exchanges, counter-terrorism cooperation, or defense and the
Transatlantic alliance. Bertinotti strongly agreed, noting
that US-Italian relations were a product of history and not
something that changed with governments. He hoped our
bilateral cooperation would continue, and perhaps expand in
the area of economic ties. As Chamber president, he hoped
for expanded contacts and cooperation with the US Congress as
well.


First Focus: Economic
--------------


5. (C) The Ambassador asked Bertinotti what his priorities
were going into the next parliamentary session. Bertinotti
replied by focusing on economic issues. The economic
expansion and growth of countries like India and China was an
important phenomenon, and posed a problem for both Europe and
the US, but especially for continental Europe. Italy had a
large budget deficit, its competitiveness had suffered, and
the small- and medium-sized enterprises that formed the
backbone of the economy were at risk. The Mezzogiorno,
Italy's south, had been neglected and required major
investments in infrastructure, as well as investment to
combat the hidden infrastructure of organized crime.


6. (C) He thought a Prodi government would be able to bring
down the budget deficit, although this would be difficult.
It would seek to negotiate favorable terms with the European
Union as it sought to bring its budget figures into
compliance with EU guidelines. There should be a crackdown
on tax evasion in Italy, which was three times the European
average and thoroughly ingrained in the system. But, he
said, reforms must be carried out in a way that does not
tamper with the country's "social model". The riots in
France illustrated the dangers when this was done.


Foreign Policy: Leery of Military Entanglements
-------------- --


7. (C) Turning to foreign policy, the Ambassador asked
Bertinotti his views on Iran. But the Communist Renewal
leader went straight to Iraq. He said the policy on
withdrawal of troops had been laid down by the Berlusconi
government, and this was the line the incoming government
would follow. This was set. But even then, Italy's stance
would simply be the same as that of other nations in
continental Europe. The Ambassador noted the importance of
not making any adjustments in a destabilizing way, and of
consulting with both the Iraqi government and allies to this
end. The Ambassador added that Italy's continuing commitment
to the rebuilding of Iraq was also important.


8. (C) On Iran, Bertinotti declared President Ahmadinejad's
comments on Israel unacceptable; Israel's existence was
secure and guaranteed. The nuclear issue was very serious.
The response to IRAN required a concerted program of
deterrrence but a military solution was not the answer; this
would be disastrous for the entire Mediterranean region.


9. (C) Bertinotti expressed concern about what appeared to
be an open-ended role for Italy and NATO in Afghanistan. The
Ambassador said Italy's role was important and much
appreciated. "But do we just stay there sine die?"
Bertinotti asked. Or should we step back and evaluate our
goals and objectives, and the progress we are making toward
them? Is it progress if the drug lords are getting
militarily and economically stronger?


10. (C) The Communist Renewal chief commented on the broad
resurgence of Islamic fundamentalism, noting in particular
the change in Palestinian politics. He felt the European
Union's position on the Palestinian issue had been weak, less
sins of commission than omission. Islamic extremism
reflected not only political but cultural differences between
the Islamic world and the West. Bertinotti hoped that Italy
could play a bridging role, because of its geographic
position, between Europe and the Middle East.


Comment
--------------


11. (C) Bertinotti's party emerged stronger in the last
elections and is now the governing coalition's third largest.
The Communist Renewal leader went out of his way to give the
Ambassador a warm welcome -- and to be seen to be doing so.
This may earn him some brickbats on the chronically anti-US
far left, but he will gain credit with many other elements of
the Center Left, including many in his own party. His
primary focus, not surprisingly for a former labor leader,
was on economic and social issues, and this will likely be
the focus of his lobbying both within the government
coalition and in the Parliament itself. But he is also a
convinced pacifist, and can be counted on to remain critical
of Italy's military deployments overseas. This was also
reflected in his comments on IRAN -- yes, it's a serious
problem, and yes, it requires concerted international
attention and pressure, but for Bertinotti, military options
should be off the table. End Comment.
SPOGLI