CHANGING EUROPEAN UNION ATTITUDES TOWARD IRAQ

UNCLAS SECTION 01 OF 02 BAGHDAD 001565 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EAID ECIN ETRD PREL EU IZ SUBJECT: CHANGING EUROPEAN UNION ATTITUDES TOWARD IRAQ Changing Attitude -------------- ¶1. (SBU) During a May 6 presentation to the Defense Attache Association in Iraq (DAAI),the Ambassador of the European Commission to Iraq, Ilkka Uusitalo, noted a rapidly changing view within the EU towards Iraq. Admitting that the EU has been strongly divided since 2003, Uusitalo emphasized that "the EU now sees a requirement to actively participate in the stabilization of Iraq." He cited two key events in the past year which contributed to this positive political atmosphere: the visit to Baghdad by French Foreign Minister Kouchner in August 2007 and the recent visit of Prime Minister Maliki to Brussels in April. The success of the Maliki visit, he added, prompted Secretary General Solana to agree to a reciprocal visit to Iraq in the near future. Expanding Trade -------------- ¶2. (SBU) Recounting the historic ties between Europe and Iraq, Uusitilo noted Iraq and the EU were about to begin the fifth round of negotiations on a Trade Framework Agreement in Brussels on June 18 - 20. He maintained the agreement would be signed by the end of the year. On energy, he noted the EU is also negotiating a formal agreement with the GOI on natural gas, with the stated intent of diversifying European energy sources. As part of these processes, he said the EU would continue to assist the Iraqi Government in their development of trade structures meeting international standards towards a goal of Iraq's eventual entry into the World Trade Organization. Expanding Assistance -------------- ¶3. (SBU) Turning to EU assistance to the GOI, Uusitalo estimated economic grant assistance from 2003 to 2008 at about 829 Million Euros (1.2 Billion dollars). He noted that most of these grants were administered through United Nations and World Bank programs primarily to support health and educational services, and in support of democratic political processes like elections and constitutional reform. Included in this figure were over 600 Million Euros for the International Reconstruction Fund Facility for Iraq (IRFFI) and over 100 Million Euros for humanitarian assistance. Additionally, Uusitalo handed out a brochure which estimates the total EU assistance (European Community and Member States) since 2003 at 14,000 Million Euros, including grants, debt relief, and loans. The brochure also highlights the role of the EU as a co-chair of the International Compact with Iraq and notes an annual contribution of almost 60 million Euros to the Compact Secretariat and teh agriculture/environment, education, governance, health, and infrastructure sectors. (Note: There are more details about EU assistance efforts in Iraq on their local web site: http://delirq.ec.europa.eu. End Note.). Expanding Baghdad Presence -------------- ¶4. (SBU) Regarding expansion of its presence in Baghdad, Ambassador Uusitilo recalled the EU had virtually no representation in Iraq between 2003 and 2005, except for aid distribution and liaison organizations. In December 2005, however, the EU made the decision to establish a small diplomatic office within the UK embassy compound. Although currently manned at only five people including an Ambassador, First Secretary, and Commercial Attache (with the remaining staff in Amman),Uusitalo said he intended to consolidate all staff operations in Baghdad, but he gave no timeline. Ambassador Uusitalo outlined his Mission's current responsibilities as political reporting, economic/trade development, and aid distribution primarily in health and educational areas. He said that his future Baghdad staff will include experts in energy policy, human rights, World Trade Organization (WTO),and scientific/technical cooperation. ¶5. (SBU) COMMENT: Although Ambassador Uusitalo's presentation was bereft of detail, the overall message to the local Defense Attache community was clear: the European Union intends increase its presence in Iraq and to adopt a more pragmatic and positive approach towards the GOI. Part of its BAGHDAD 00001565 002 OF 002 increasing presence in Baghdad is clearly influenced by the improving security environment, but it also represents progress by the GOI in re-integrating itself into the international community. END COMMENT. CROCKER