CZECH REPUBLIC: AGAINST THE EU CONSTITUTION, WANTS

C O N F I D E N T I A L SECTION 01 OF 03 PRAGUE 000103

SIPDIS

SIPDIS

STATE FOR EUR/ERA AND EUR/NCE

E.O. 12958: DECL: 02/01/2017
TAGS: PREL ECON PGOV EUN EZ
SUBJECT: CZECH REPUBLIC: AGAINST THE EU CONSTITUTION, WANTS
TO "REMOVE BARRIERS" DURING 2009 EU PRESIDENCY

Classified By: Pol-Econ Counselor Mike Dodman for
Reasons 1.4 B & D


1. (SBU) SUMMARY: Sparked by the January 26 visit of Germany
Prime Minister Angela Merkel, several prominent Czech
politicians -- with President Klaus in the lead -- have made
strong statements against reviving the EU constitution. The
renewed debate is illuminating divisions within the governing
coalition that includes both the euro-skeptic ODS and the
euro-enthusiastic Greens. The debate comes as the new
government is finally starting to focus on the 2009 Czech EU
Presidency, setting up a coordinating team and designing a
theme that will revolve around "removing barriers." END
SUMMARY

-- MERKEL VISIT & THE EU CONSTITUTION --


2. (SBU) The Czech Republic has yet to hold a vote on the EU
Constitution. The previous government had not been able to
agree on the timing or modalities of a decision prior to the
defeats in France and the Netherlands, and the process has
been on ice since then. However a government shift that
coincided with the German EU Presidency's effort to revive
the debate over the Constitution means that the nature of the
debate has changed. Instead of a pro-European government led
by the Social Democrats, the Czechs now have a government led
by the Civic Democrats (ODS),a party whose rhetoric, if not
always its actions, have been skeptical of European
integration.


3. (C) German Chancellor Merkel's brief January 26 visit to
Prague, designed solely to discuss the Constitution, forced
the new government to confront the issue. The visit gave the
euro-skeptic President Klaus a platform to restate his
well-known position against the Constitution. The German
Embassy reports that Merkel had no intention of trying to
convince Klaus to moderate his views on the Constitution or
EU integration overall, but rather wanted to have a dialogue
and take the pulse. PM Topolanek's comments after his
meeting with Merkel, while still cool to the idea of reviving
the existing document, were nonetheless noticeably softer
than Klaus's, and in that respect he better reflects the
stance of ODS's core business constituents who do not want to
see a political dispute harm the economic benefits of closer
integration. Unfortunately, the rise in rhetoric coming from
Prague has drawn attention elsewhere in Europe, and the past
week has seen a war of words develop between ODS and German
MEP Jo Leinen who has accused the Czech President of acting
contrary to the country's interests.


4. (SBU) The Constitution debate is also driving a wedge
between ODS and it junior coalition partner, the Greens.
Topolanek has appointed Czech MEP Jan Zahradil (ODS) as the
nation's "sherpa" on EU constitution talks, and on January
29, Zahradil stated that "I am here to find a constructive
outcome, but at the same time I am not ready to agree to
everything that the German presidency is proposing." In
reaction, Deputy Prime Minister Martin Bursik (Greens),
during a February 1 visit to Brussels, complained that
Zahradil's position does not represent the official position
of the Czech Republic -- because, in fact, the government has
not yet been able to decide on an official position. In
addition to problems within the coalition, the opposition
CSSD has seized on the EU Constitution as a means to
discredit the Topolanek government, and proposes to debate
this during a special session of parliament on February 7.
While the government will likely be able to block this, it
merely highlights the fact that the Topolanek government has
not been able to come up with a coherent and defensible
position on the Constitution.


5. (C) Below the level of public debate and posturing, the
MFA Director of EU Coordination and Institutions, Dr. Radek
Pech, told us January 24 that the Czechs would seek to avoid
a repeat of the inter-governmental conference on the
Constitution, lamenting that the Constitution commentary
process was not very democratic and seemed to be manipulated
by the chairman. He also noted that participation by
Parliamentarians resulted in lengthy and counter-productive
speech-making. Pech said that the Czechs would prefer a more
"transparent" consultation mechanism and would not/not
support the use of the term "constitution" in future texts.
Instead, the Czechs have been referring to the issue as the
"institutional framework for the EU."

-- INTER-GOVERNMENTAL COORDINATION --


6. (SBU) As it struggles with the question of the EU
Constitution, the new government is also trying to set up a
new system to deal with EU issues, driven by the need to

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begin active preparations for the Czech EU Presidency that
will start in January 2009. The Topolanek government for the
first time has established the position Deputy Prime Minister
for EU Affairs. According to Pech, the new office will
replace the existing inter-governmental coordination
mechanism that met weekly at the deputy minister-level. Pech
said the MFA welcomed the new structure.


7. (SBU) Filling the new position is Alexandr (Sasha) Vondra,
former Foreign Minister, former Czech Ambassador to
Washington, and currently an ODS Senator. Vondra's choice
was something of a surprise, as he is best known as an expert
on and supporter of transatlantic issues and has not worked
in any detail on EU affairs. Local EU diplomats have taken a
wait-and-see approach before reaching judgment on the
appointment. For his part, the MFA's Pech believes Vondra's
appointment makes sense given his political weight and
experience, especially in light of domestic political
sensitivities on many EU issues. As a practical matter, it
helps that Vondra has both long experience with the MFA and
very close ties with the current Foreign Minister, Karel
Schwarzenberg. The process of adjusting to the new
coordination structure is likely to be relatively smooth.


8. (SBU) DPM Vondra has decided to organize his office into
two sections. Former Deputy Finance Minister Jana
Hendrichova will oversee the "EU Presidency Preparations"
section, responsible for (1) communication with the public,
(2) secretariat role, and (3) public procurement. Former
Defense Minister Jiri Sedivy will oversee the "General
Affairs" section, responsible for (1) conceptual analysis
(including the Lisbon Agenda),(2) intergovernmental
coordination (EU committee meetings),and (3) communitarian
law (ECJ issues). There are currently only eight people in
DPM Vondra's office, including the DPM. However, each
section will have 20 people by June 2007, with the goal of
reaching 30 by end-year.


9. (SBU) In Pech's office at the MFA there are 16 positions,
only 12 of which are currently filled, and of that number
only six are diplomats. He conceded that his Department was
still organized to reflect the Czech EU accession process,
and he is looking at a realignment that would divide the
Department into two sections -- political and
technical/sectoral issues -- in anticipation of the EU
Presidency. He also noted that there are on-going efforts to
train Czech diplomats on EU Presidency management, including
two diplomats currently assigned to the German MFA. Pech
said that member states such as Ireland and the Netherlands
have offered to provide advisors during the Czech presidency.

-- "REMOVING BARRIERS" WILL BE PRESIDENCY THEME --


10. (SBU) Denisa Haubertova, an advisor in DPM Vondra's
office, told emboff January 31 that the likely theme for the
2009 Czech EU Presidency would be "Removing Barriers." She
explained that this theme had been proposed by the Czech
Mission to the EU, and that "barriers" would be interpreted
broadly: trade barriers, information barriers, bureaucratic
barriers, etc. She also mentioned that the following items
were likely to be included in the Czech Presidency agenda:
competitiveness, Common Agriculture Policy (CAP) reform,
budget reform and enlargement.


11. (SBU) At the MFA, Pech noted the following key events
during the Czech EU Presidency: the U.S.-EU Summit, European
Parliament elections, and European Commission
re-organization/reform including selection of a Commission
President according to the Nice Treaty. He said that the
current draft of Czech EU presidency priorities included:
competitiveness (i.e. liberal trade policies),energy
security, budget reform (i.e. CAP reform),transatlantic
relations, justice and home affairs (e.g., immigration and
organized crime),and institutional reform (i.e. the
Commission). Pech admitted this was too ambitious of a list,
an observation shared by other member states, and indicated
further prioritization would take place in due course. On
enlargement, Pech noted that the Czechs would be eager to
welcome Croatia into the EU during the Czech Presidency given
the geographical importance of the Western Balkans to the
Czech Republic.


12. (SBU) Pech also flagged that the Czechs are likely to be
"cautious" on additional transfer of competencies to
Brussels. When pressed on the issue, he conceded he was
alluding to Justice and Home Affairs issues and not/not
energy security, where the GOCR is pushing for a united EU
position. During a January 25 meeting with Emboff, Ministry
of Interior Director of the International Relations and
European Integration Department Blanka Rybonova said that

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while internal market issues were likely to take priority
during the Czech Presidency, JHA would likely lead the list
of second tier issues. Specifically, Rybonova highlighted
that the current Hague Program focusing on freedom, security
and justice issues expires in 2009. She said that the Czechs
are one of six countries currently meeting to discuss a
framework for what she hoped be known as the follow-on
"Prague Program" that would be a roadmap for 2009-2014.
Rybonova also noted that the postponement of the second
generation Schengen Information System (SIS II),which was
supposed to be ready by 2006, is currently scheduled to be
completed in 2009. As a result, SIS II implementation would
likely be on the list of "to do" items for the Czech
Presidency.
GRABER