SPAIN'S EU PRESIDENCY PRIORITIES: ECONOMIC REFORM, SUMMITS,

UNCLAS SECTION 01 OF 02 MADRID 000730 SENSITIVE SIPDIS EUR/ERA (JONATHON KESSLER AND ALESSANDRO NARDI) AND EUR/WE E.O. 12958: N/A TAGS: PGOV PREL SP EU SUBJECT: SPAIN'S EU PRESIDENCY PRIORITIES: ECONOMIC REFORM, SUMMITS, AND THE LISBON TREATY REF: MADRID 99 MADRID 00000730 001.2 OF 002 ¶1. (U) Summary: The Spanish Congress recently approved Spain's EU Presidency priorities as outlined by the Foreign Affairs Ministry. The priorities are threefold: economic recuperation and creating employment opportunities, developing Europe as a global actor, and implementing the Lisbon Treaty. We expect these broad goals to be further refined in response to activities during the next five months of the Swedish EU Presidency. End Summary. ¶2. (U) Further defining objectives under the first goal regarding the economy and job creation, the GOS distinguishes between the financial crisis and related crises in the "true economy." With respect to the financial crisis, the GOS plans to develop initiatives or legislative measures in order to: -- increase transparency in financial regulation; -- regulate rating agencies; -- reinforce a "prudential framework" with respect to financial regulation; -- introduce counter-cyclic elements in financial regulation; -- strengthen the infrastructure of capital markets; -- establish a European financial supervision mechanism; -- establish a financial crisis management system to provide temporary intervention and resolution in bank crises; -- further develop the European financial services market; and -- collaborate internationally in the development of a new international financial order based on transparency, sound banking practices, responsibility, and integrity. On the other side of economic reform, defined as changes related to the "true economy," the GOS will focus on: -- Lisbon Treaty revisions, paying attention to questions of education and research and development; -- job creation; -- integration of the European energy policy and development/application of climate change measures (to include adoption of the 2010-2012 Energy Action Plan and application of agreements as a result of the Copenhagen Conference); -- development of a new European Social Agenda; -- development of a 2011-2015 Gender Equality Plan; -- adoption and application of the Decent Work Agenda, developed by the UN's International Labor Organization, as the presidency corresponds with Europe's Year of the Fight Against Poverty and Social Exclusion; and -- application of the Stockholm Program; furthering the development of a European judicial system, deepening mutual understanding and execution of judicial decisions; and reinforcing the common position on immigration and asylum. ¶3. (U) Spain's second priority -- elevating Europe in the global arena -- will aim to consolidate strategic associations with key regional actors and seek solutions to conflicts in the Middle East and Caucasus. The following summits will take place: -- EU-Latin America/Caribbean Summit (in Spain),wherein Spain hopes to sign the EU-Central America Association Agreement and the multi-party commercial agreement with Andean Community partners; -- EU-US Summit (in Spain),to focus on renewal of the Transatlantic Agenda and identifying new areas for cooperation; -- EU-Mexico Summit (a first); -- EU-Canada Summit, wherein the parties are expected to move forward with the commercial agreement; -- the second Summit of Heads of State and Government for the Union of the Mediterranean, for review and analysis of the "Paris projects;" -- EU-Morocco Summit (a first); -- EU-Japan Summit; -- EU-Russia Summit, wherein the GOS expects to make notable advances in the negotiation of a new EU-Russia agreement; -- EU-Eastern European ministerial meeting; -- Revision of the Cotonou Accord in preparation for the EU-Africa and EU-ASEM Summits to take place under the Belgium presidency; and -- EU enlargement, to include ratification of Croatia's accession into the EU, further progress on negotiations for Turkey's EU accession, and development of a Stabilization and Association Agreement with Macedonia. ¶4. (U) Spain's application of the Lisbon Treaty will focus on the new institutions, strengthening the Parliament, new competencies (education, health initiatives, intellectual property protection, climate change, and administrative cooperation),strengthening solidarity and common interests among EU citizens, ensuring the binding nature of the EU Charter of Fundamental Rights, and creating an EU Diplomatic Corp. ¶5. (SBU) At a recent roundtable discussion entitled "The Spanish EU Presidency in a World of Crisis," many academics and politicians MADRID 00000730 002.2 OF 002 criticized Spain's agenda as presented, calling it ambiguous and without focus and questioning the utility of the many summits. While some panel members, including A/S-equivalent Lopez Garrido, defended the agenda, asserting that Spain will live up to the ambitious expectations, at least one GOS official narrowed the scope. Milagros Hernando, Director General for Security and International Affairs with the Office of the President, emphasized economic reform, EU solidarity, energy security and climate change, and EU global relations as critical Spanish EU priorities. She acknowledged that "Spain cannot change the world during our Presidency," adding that the GOS must, however, responsibly manage the broader issues. CHACON