FRENCH MFA DIRECTOR GENERAL DISCUSSES POST-LISBON

UNCLAS PARIS 001743 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON ETRD KIPR PREL FR SUBJECT: FRENCH MFA DIRECTOR GENERAL DISCUSSES POST-LISBON CHALLENGES FOR U.S.-EU RELATIONS WITH EEB A/S FERNANDEZ ¶1. (SBU) Summary: On his first official visit to Europe as EEB Assistant Secretary, Jose W. Fernandez called on French MFA Director General for Sustainable Development, Christian Masset, on December ¶8. Fernandez described his priorities as A/S and expressed commitment to promoting stronger U.S.-EU economic ties. Masset discussed the impact of the Lisbon Treaty and the emergence of the G20 on the EU, global governance, development assistance, and U.S.-EU relations. He predicted that post-Lisbon political processes could complicate important issues on the transatlantic agenda. Both officials agreed to continue their dialogue over the coming months. End summary. ¶2. (SBU) Travelling to Paris for the OECD Global Investment Forum, A/S Fernandez also met with French officials and U.S. business representatives. He called on Christian Masset, the MFA's DG for Sustainable Development and also France's G20 and G8 sous-sherpa. Masset's portfolio includes development and global matters as well as economic issues. In response to Fernandez's question about the dynamics of the EU post Lisbon, Masset explained that the EU would transform into a full global actor. To date, EU economic policy, other than trade policy, has centered on the internal market. Now the EU would be in a position to develop fully its relations with the rest of the world. He noted the longstanding concern with the number of European seats in every multilateral body, but said that as the world moved towards a more rule-based, less-discretionary set of economic relations, the European experience with integration would be increasingly important. ¶3. (SBU) On global financial architecture, Masset noted that before Pittsburgh, the emerging economies were forced to accept the rules of the developed world in exchange for access. Post-Pittsburgh, they became full members and will seek to change the current rules of the system. Masset thought that the implications of this evolution required continuing discussion by the G8. On foreign assistance, Masset said that traditional official development assistance appeared to have reached its limits both in terms of amounts and effectiveness. He asked the USG to take a fresh look at innovative finance mechanisms for global challenges such as climate change, or public health. ¶4. (SBU) Commenting further on Lisbon, Masset said that over the next two years, the EU would be working on its long-term budget perspective and figuring out how to follow up the 2000 Lisbon Strategy on creating a competitive, knowledge-based economy. He pointed to the Commission's Europe 2020 plan as the starting point. Masset emphasized that "Europe" is no longer an aspiration or a goal but is now a set of rules, norms and standards that are omnipresent in the lives of Member State citizens. This makes the European Union both less popular and more tangible. For example, he said, three fourths of the legislation passed by member state parliaments now represents implementation of EU directives. ¶5. (SBU) On U.S.-EU relations, Masset foresaw a number of potential problems emerging from the implementation of collective or societal European preferences, particularly over consumer protection and the precautionary principle. He also thought that different approaches to patent law and intellectual property protection could be contentious issues along with public procurement policies in an era of increased government finance in the economy. He understood that the U.S. was driving to reorient its economy from consumption towards greater production and exports and said that Europe would need to adapt to this recalibration of the U.S. economy. ¶6. (U) A/S Fernandez cleared this cable. Rivkin