MACEDONIA: PARLIAMENT APPROVES NEW GOVERNMENT

UNCLAS SECTION 01 OF 02 SKOPJE 000816

SIPDIS

SIPDIS

DEPT FOR EUR/SCE

E.O. 12958: N/A
TAGS: PGOV PREL MK
SUBJECT: MACEDONIA: PARLIAMENT APPROVES NEW GOVERNMENT

REF: SKOPJE 779

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SUMMARY


1. (SBU) Parliament easily confirmed on August 26 the new
government and work program of VMRO-DPMNE (Internal
Macedonian Revolutionary Organization -- Democratic Party for
Macedonian National Unity) leader and now Prime Minister
Nikola Gruevski. Gruevski's work program focuses on economic
development, combating corruption, and EU and NATO membership
priorities. The ethnic-Albanian Democratic Union for
Integration (DUI) and Party for Democratic Prosperity (PDP)
boycotted the entire parliamentary session and held a large
peaceful one-hour protest outside parliament. The two-day
debate was heated at times; however, Gruevski's speech
outlining the government's work program was positive and
forward looking. End Summary.

PARLIAMENT APPROVES NEW GOVERNMENT


2. (SBU) Late the evening of August 26, the Macedonian
Parliament voted 68 to 22 to approve the VMRO-DPMNE-led
coalition government and work program for the next four
years. All 17 ethnic-Albanian DUI and PDP MPs boycotted the
parliamentary session in protest of VMRO-DPMNE's decision not
to invite them into the governing coalition. The new
government also faced harsh criticism from the out-going
ruling party, now the largest opposition party, the Social
Democratic Union of Macedonia (SDSM). The tone of the
two-day session, however, generally was civil.


3. (SBU) DUI and PDP organized a protest outside the
parliament building to coincide with the start of the
parliamentary session on August 25. Local observers reported
approximately 2,000-3,000 protesters, although DUI/PDP
claimed 20,000 (highly exaggerated, in our view). Under the
theme "Respect the Vote," the demonstrators protested the
incoming governing coalition's decision not to invite DUI/PDP
into the coalition, despite the fact that they had garnered
most of the eAlbanian votes. The protest lasted for one hour
and included speeches by the leaders of both parties and
other party members. While the speeches contained some harsh
rhetoric that harkened back to the 2001 conflict, the protest
remained peaceful.

THE GOVERNMENT PROGRAM


4. (U) Gruevski delivered a lengthy speech outlining the
government's program on the first day of parliamentary
debate. He cited economic development, fighting corruption,
democracy building, improving inter-ethnic relations, and EU
and NATO membership as key programmatic themes. In this
context his speech focused on two key priorities: economic
development and NATO and EU integration. The government will
seek to accelerate economic growth through a number of
reforms and initiatives, including introduction of a flat tax
rate of 10 percent, increased liberalization and
privatization of the market, disciplined macroeconomic fiscal
policies, and an active approach to seeking foreign direct
investment. The government set as goals NATO membership in
2008 and the start of EU accession negotiations in 2007. It
aims to fulfill EU accession criteria by 2010.

COMMENT


5. (SBU) The government's program is far reaching. In
addition to economic and Euro-Atlantic integration goals, the
governing coalition will combat corruption at all levels of
government, reform and improve the judicial system, fully
implement the Ohrid Framework Agreement, and increase support
for the agricultural sector. Gruevski's speech was positive,
not placing blame on the previous government, and calling for
all citizens, no matter their political party or ethnicity,
to work together for the future of Macedonia.


6. (SBU) The successful parliamentary vote on August 26 marks
the end of a peaceful, although not always smooth, transition
of power following July's elections. The out-going SDSM
conceded the election gracefully and, while criticizing the

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new government, has generally acted in a politically mature
manner. Internal party politics have dominated SDSM since
the election, and their upcoming party convention, planned
for the end of September, will include a vote of confidence
in party leadership. DUI and PDP, while not happy with the
governing coalition outcome and despite some regrettable
rhetoric, have expressed their protest largely in a peaceful
and democratic manner. The new governing coalition has
focused its program and rhetoric on the future of Macedonia,
including an emphasis on improved inter-ethnic relations and
implementation of the Framework Agreement. Such positive
comments were noticeably absent during the campaign period,
indicating that the incoming coalition may be making the
transition from opposition to a more inclusive, responsible
ruling coalition.
WOHLERS