EU LEADERS BLESS "UNION FOR THE MEDITERRANEAN" AS "UPGRADE"

UNCLAS SECTION 01 OF 02 BRUSSELS 000392

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL EUN
SUBJECT: EU LEADERS BLESS "UNION FOR THE MEDITERRANEAN" AS "UPGRADE"
OF BARCELONA PROCESS



1. SUMMARY. EU leaders in the March 13-14 European Council gave
their blessing to the "Union for the Mediterranean" initiative
presented by French President Sarkozy and German Chancellor Merkel.
The plan, described by Slovene PM-European Council chair Jansa as
"an upgrade" of the existing Euromed Barcelona Process, will involve
all EU Member States in cooperation with their Southern
Mediterranean partners. The Commission was tasked to define its
modalities of the scheme in view of a summit meeting of participants
to take place in Paris on July 13. This outcome appeared to be the
only way not to say NO to Sarkozy-forthcoming French presidency, who
had previously reached a deal on the outlines of the plan at a
private dinner with Merkel in early March. Solana (a key player as
then-Spanish FM when the Barcelona Process was established in 1995)
also put a brave face on the outcome. Details obviously remain to
be worked out. Commission President Barroso emerges as the pen
holder when it comes to fixing the modalities, although he was
careful to say that member states have final authority. END
SUMMARY.


2. EU heads of State and government in their March 13-14 European
Council gave their blessing to a French proposal for a Mediterranean
Union to boost ties between the EU Member States and their Southern
Mediterranean partners (non-EU Mediterranean coastal states). The
plan, presented by French President Sarkozy and German Chancellor
Merkel to their colleagues over dinner on March 13, emerged from the
meeting as a scheme markedly different from the original design as
proposed last year by President Sarkozy.


3. In essence, the concept now appears to have shrunk from a forum
grouping only states with a Mediterranean coastline and involving a
series of agencies and a bank, to a scheme for holding regular
summit meetings of EU and Mediterranean countries with a joint
presidency - a formula that may still be dropped - and a small
secretariat. The revised plan, described in a Franco-German

SIPDIS
document circulated to EU capitals ahead of the European Council,
provides for a co-presidency to be shared at the outset by one
non-EU country from the Southern flank of the Mediterranean and one
EU Member State with a Mediterranean coastline. Spanish Secretary
of State for European Affairs Navarro cautioned in Brussels that
such rotating co-presidency system would not work because (some)
Arab countries would likely not agree to assign it to Israel. HR
Solana reportedly voiced similar concerns.


4. Speaking at a post-dinner press conference on March 13 Jansa
presented the new initiative as an "upgrade" of the existing
Barcelona process, saying it was "part of a normal evolution."
Jansa said that all EU Member States would be involved in the
proposed scheme that "enjoyed support from the (European) Council."
The European Council conclusions tasked the Commission to propose
"the necessary proposals for defining the modalities of what will be
called 'Barcelona Process: Union for the Mediterranean' in view of"
a Summit meeting of participants to take place in Paris on July 13.
Commission President Barroso openly backed the plan, expressing his
satisfaction that the initiative will now involve the EU-27 "as we
(the Commission) have been calling for as from the beginning."
Barroso told reporters the Commission would welcome further inputs
in drafting its proposals. He made it clear that the final decision
(on the details of the scheme) would rest with the European Council.
Jansa and Barroso told questioners that the Franco-German draft was
never addressed by the leaders as a possible alternative to Turkey's
accession to the EU.


5. While no leader appeared to have raised formal objections to the
presentation of the scheme, some delegations sounded far from
enthusiastic in their side-comments to press. Austrian Chancellor
Gusenbauer said the idea "doesn't do any harm" but added: "What
matters to us is that it's not some special grill party for a few
Member States." Sarkozy countered by telling reporters he "never
had the idea of excluding" anyone nor was the plan ever-conceived as
"a rival to the EU." Sarkozy acknowledged that consultations on his
initiative had been somewhat difficult but stressed that relations
with Chancellor Merkel had not been strained over the issue, saying
they remained "excellent."


6. As it stands, the revised scheme appears to be short of
specifics on new concrete projects as well as on financing
arrangements. French sources mentioned tentative plans for cleaning
up the poluted Mediterranean Sea as well as joint effortsto combat
forest fires but other officials doubted few concrete projects could
be ripe for approval by the time of the July Paris Summit. To
appease the concerns of Germany and other budget-minded countries,
the "Union for the Mediterranean" would not provide for any new EU
funding on top of existing resources as envisaged under the
Barcelona Process. The Germans, who feared the original French plan
would have split the EU and siphoned off funding for the benefit of
some EU Mediterranean countries and their partners on the Southern
flank, offered no flexibility on this point. According to some
sources at the European Council, France may seek additional funding
from the private sector but the idea immediately raised questions as
to the control of such funding.


7. COMMENT: The Barcelona Process of trade, cultural and political

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cooperation launched under Spanish Presidency in 1995 is deemed to
have yielded disappointing results. This is due to the ongoing
Middle East conflict but also to failure of some Mediterranean
countries to provide adequate and democratic structures to absorb
funds. Progress toward the original aim of a Euro-Mediterranean
free trade area by 2010 has definitely been slow. In practice, the
"Union for the Mediterranean" designed to promote cooperation in a
regional dimension and develop solidarity among its participants
therefore looks likely to face the same obstacles as the current
Euromed partnership and to end up as little more than a new
political umbrella for the Barcelona Process.

MURRAY