C O N F I D E N T I A L SECTION 01 OF 02 BUCHAREST 000300

SIPDIS

SIPDIS

EUR/NCE FOR AJENSEN

E.O. 12958: DECL: 03/12/2017
TAGS: PGOV PREL ENIV RO
SUBJECT: PRIME MINISTER TARICEANU TELLS AMBASSADOR BASESCU
SHOULD BE TAUGHT "A LESSON"


Classified By: Ambassador Nicholas F. Taubman, for reasons
1.5 (b) and (d)


1. (C) Summary: Prime Minister Tariceanu told the Ambassador
at a March 13 meeting that he had decided to postpone
European parliamentary elections until the fall because he
feared that they could not be carried out in the current
political turmoil in "a European manner." The PM appeared
determined to stand up to what he characterized as President
Basescu's continued interference in the work of his
government. While expressing concern over the potential
damage to Romania's reputation of a Presidential suspension,
Tariceanu sounded as if he were prepared to see the motion to
suspend the President go forward, saying suspension might
serve to "teach the President a lesson." Despite the turmoil
of the political scene, the PM emphasized his determination
to work closely with the Ambassador in ensuring a timely
privatization timetable for the Craiova automotive factory,
which both GM and Ford are interested in buying. End Summary.


2. (C) Ambassador, DCM and Econ Chief met with Prime Minister
Tariceanu on Tuesday, March 13, at the PM's request. The PM
wanted to discuss and explain his recent decision to postpone
Romania's elections for the European Parliament, which had
been scheduled to take place on May 13. In addition, he
wanted to review the Craiova automotive factory privatization
process.

Postponement of Elections to Protect EU's Image
-------------- --

3. (C) The PM gave the Ambassador a detailed explanation of
his decision to postpone the European Parliamentary
elections. The PM observed that the political dynamics in
other new EU member countries, in which domestic political
issues crowd out the debate about EU issues, made him
concerned that the same thing would happen in Romania. The
PM professed concern that, given the current turbulence in
the domestic political scene, the EU elections would see the
election of representatives like those in Gigi Becali's New
Generation Party rather than politicians who r

epresent "true
Romanian values."


4. (C) The PM claimed that he had asked the opposition
parties to cease their attempts to suspend the President and
had also requested that President Basescu postpone his push
for a referendum for uninominal voting. The PM asserted that
neither side was willing to listen to reason and therefore
the PM had taken the step of postponing the European
Parliament elections to let the situation calm down. The new
date for the elections would be in the fall, although the
date was not yet certain.


5. (C) When the Ambassador asked the PM why he believed the
political situation would be any better in the fall, the PM
said he would seek to convince both sides to refrain from
their respective plans (the opposition's effort to suspend
the President, and the President's call for a referendum
shifting election of parliamentarians to a uninominal
system). The PM claimed that he would be speaking to leaders
of all the political parties in the near future.

"Teaching the President a Lesson"
--------------

6. (C) The Ambassador observed that the recent political
mudslinging and public arguments between the PM and President
Basescu were harmful to Romania's image; Romania needed to
have a government that could function for Romanians. The PM
said he too was frustrated but asserted the problems were not
his doing. He acknowledged that he and his government were
hamstrung by the political feuding and that Romania was in
danger of losing momentum and even investment due to the
infighting. Tariceanu recalled how the Democratic Alliance
government had been formed in 2005 with a razor-thin
parliamentary majority, asserting that "now the President has
blown up the majority" by forcing the departure of the
Conservative Party from government.


7. (C) When asked for his take on his view about the move by
the opposition to suspend the President for 30 days, the PM
candidly said he had a mixed view. On the one hand, the
suspension effort was giving Romania a bad image, to both
domestic and foreign audiences. On the other hand, however,
Tariceanu observed that he had felt the President's actions
"on my own skin," and perhaps it was time to "teach him a
lesson." The PM wanted, he added, to remind the President
that there was such a thing as the separation of powers.
That said, the PM claimed that his party (PNL) had taken no
final decision yet about how to vote in parliament regarding
suspension. The PNL would "see how things go" in the coming
weeks. The PM commented that the President was beginning to

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realize he was more and more isolated politically.


8. (C) In the meantime, Tariceanu insisted he would press on
with the business of governing. He told the Ambassador that
he planned to speak out in favor of a law establishing a
National Integrity Agency in a speech before the Senate on
March 14. The PM would also go to parliament next week to
discuss issues that were raised in the most recent European
Council meeting, including on energy.

Craiova Privatization still going forward
--------------

9. (C) Tariceanu assured the Ambassador that the GOR was
still interested in an expedited privatization of the Craiova
automotive factory. Even on this issue, however, he got in a
dig at President Basescu, claiming that despite the
President's being a "stick in the wheel," the PM had created
the Commission for Privatization for the factory (Basescu had
publicly criticized the terms of reference for the
commission, which initially had included the right of the
ministers serving on it to draw handsome bonuses for their
contributions.) The Ambassador asked the PM and the GOR to
establish a firm timetable for the privatization so that all
bidders would be on the same page. The PM assured that
Ambassador that the end of June was still the target date for
the finalization of the sale, but also pledged to get the GOR
to issue a firm calendar for privatization.

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

10. (C) The PM's candid remarks about seeing Basescu taught a
lesson through a suspension from office, however caveated,
suggest that Tariceanu will not go out of his way to
encourage a different outcome. That reticence to look past
the bruising political combat between the two palaces, as
well as the fact that any eventual suspension vote would be
held by secret ballot, make the prospect for a 30-day
suspension of Basescu more real. At this juncture, the Prime
Minister's star is rising, at least on the day-to-day
political scorecard. He, more than President Basescu,
appears to be the figure who has options. End Comment.


TAUBMAN