MOVING FORWARD WITH CZECHS AND HIGHLIGHTS OF EU

UNCLAS SECTION 01 OF 03 PRAGUE 000414

SENSITIVE
SIPDIS

EUR/ERA WLUCAS, EUR/CE FOR ASCHEIBE

E.O. 12958: N/A
TAGS: EUN EZ EG PGOV PREL
SUBJECT: MOVING FORWARD WITH CZECHS AND HIGHLIGHTS OF EU
PRESIDENCY

REF: DIXON-EUR/ERA E-MAIL DATED 7.1.2009


1. (SBU) Summary: Now that the Czech EU Presidency has come
to a close, emboffs have noticed several notable shifts
within the GoCR - in tactical engagement within the EU, in
Czech centers of power, and interestingly in high-level
outreach to the USG. The Czechs remain committed
Euro-Atlantists and while they aspired to advance
Transatlantic relations even further than they were able to
during their EU Presidency, they continue to seek ways to
strengthen these ties. There are also several areas of note
(such as energy security, the Eastern Partnership, and
limiting protectionist economic measures) where the Czechs
feel they have substantially advanced issues within the EU
over the last six months and where they continue to engage at
the highest level. End Summary.

--------------
Czechs Offer Highlights of Their Presidency
--------------

2. (SBU) During the Czech EU Presidency, the Czechs had to
contend with the comments of the French and the collapse of
their government, both of which they feel have undercut their
credibility within the EU and the wider world. In the later
half of their presidency the Czechs took pains to emphasize
their accomplishments, particularly in the areas of energy
security, the Eastern Partnership, and avoiding protectionist
measures in light of the economic downturn. The Czechs even
published two documents, "Results of the Czech Presidency in
the EU Council" and "The most important legislative acts
settled during the Czech Presidency" outlining these
accomplishments (Ref A).


3. (SBU) The strongly pro-American center-right Czech
government had wanted to do more to strengthen transatlantic
relations during their EU Presidency and were often
frustrated by the lack of high-level U.S. interlocutors due
to the pace of the U.S. transition. While pleased to host
the first U.S.-EU Summit with President Obama, they had hoped
to leave a more lasting legacy such as a reinvigorated
Transatlantic Economic Council (TEC) or the launching of a
U.S.-EU energy council. They also were very public in their
opposition to any EU protectionist measures and played a key
behind-the-scenes role in pushing the European Commission to
accept the U.S-EU interim beef agreement. The Czechs will
continue to support a strong transatlantic relationship and
the elimination of transatlantic trade barriers. In this
area, Czechs are one of the closest U.S. allies within the
EU.


4. (SBU) The Czechs made energy security one of their main EU
Presidency priorities and were widely praised for their
handling of the January gas crisis and their ability to
maintain EU consensus despite concerted Russian efforts to
divide Europe. The Czech EU Presidency also pushed through
the Third EU Energy Liberalization package and 4 billion
euros in EU funding for internal electricity and gas
interconnections, carbon capture and storage pilot projects,
and offshore wind farms. The four billion euros also
included 200 million euros in seed money for Nabucco and 100
million for ITGI Poseidon. Concerned about central and
eastern Europe's dependence on Russian gas, the Czechs
actively reached out to the Caspian energy producers and PM
Topolanek became the first leader of an EU Presidency country
to visit the Caspian region in that role. The Czechs also
held an EU-Southern Corridor Summit in May and Turkey
subsequently signed the Nabucco intergovernmental agreement
on July 13. The Swedes recruited Czech MFA Energy Envoy
Vaclav Bartuska to advise them during their Presidency and
the Czechs are likely to continue to punch above their weight
on EU energy issues for the foreseeable future.


5. (SBU) With respect to the Eastern Partnership, for quite
some time the Czechs have felt strongly that the EU needed to
do more to engage its immediate neighbors and they were a
driving force behind the very first summit with the EU's six
Eastern neighbors this spring. The EU also pledged over 600M
euros for the Eastern Partnership program aimed at
encouraging internal reforms. Now that there is a framework
for discussions with these nations, backed up by the
enticement of substantial EU funds, Czech MFA officials see
this as an opportune time to press hard, particularly on
human rights reforms. Indeed, the European Commission met
last month with Czech, Swedish, and Polish officials to
discuss precisely how to carry forward internal reforms and
support for civil society in these six nations, according to
MFA Strategy and Analysis Deputy Director Martin Svarovsky.

--------------

PRAGUE 00000414 002 OF 003


A More Subtle Czech Approach Within the EU?
--------------

6. (SBU) Officials within the Czech MFA Common and Foreign
Security Policy (CFSP) Department recently commented to
emboffs that they have learned quite a lot - especially when
it comes to the formation of EU policy - in the last six
months. As an example, Deputy Director Sequensova noted that
previously the Czechs would often state their opinion at an
EU gathering and then hope the weight of their argument would
convince others. The Czechs learned that sometimes they were
simply not engaged in debate or taken seriously if they were
too rigid (especially when it came to their approach on human
rights issues). She commented that since leading the EU
Presidency, the Czechs noted that some of the most effective
member states laid the groundwork with other key members
first and then basically present a fait accompli once the
actual meeting occurred. She noted that the Czechs now
understand how effective this can be and that in the future
they will put more effort into "lining things up" in advance.
The Czechs are also more confident and no longer feel the
need to defer to the views of the larger, and older EU member
states. Deputy European Correspondent Magdalena Janesova
noted that this is particularly true for the Czechs now when
it comes to taking on France. Sequensova also noted that
when the Czechs first joined the EU in 2004 they felt obliged
to study every subject. According to Sequensova, leading the
presidency has shown them that they would be better off
studying and lobbying selectively.

--------------
Czechs Clamor for USG Attention
--------------

7. (SBU) As the Czechs slightly adjust their approach on
advancing issues within the EU, they continue to engage the
USG as in the past - seeking our insights and perspective on
a range of subjects. The frequency of this outreach by
Foreign Minister Kohout in particular is of a different
magnitude than under Foreign Minister Schwarzenberg. While
FM Schwarzenberg took an overarching view of issues and
allowed those at the working level to advance issues,
according to Magdalena Janesova, from the time FM Kohout
stepped into his new position, he has energetically engaged
on a range of issues both within his MFA and with third
countries. This is significant because it is often at the
Head of Government and Foreign Ministerial levels of the EU
where leadership really makes a difference and Kohout appears
eager to make his mark. Unfortunately, Kohout's eagerness to
engage his foreign counterparts on almost every foreign
policy issue could backfire if he wears out his welcome.
This would be unfortunate as Czech thinking often runs along
similar lines to that of the USG. With August holidays and
Czech elections in October, we need to remain realistic as to
what we can expect to see from Czech officials during the
early fall.

--------------
Musical Chairs and Power Shifts
--------------

8. (SBU) Working with this Czech interim government, emboffs
have noticed a definite shift in power and coordination from
the Deputy Prime Minister's office (formerly led by Alexandr
Vondra) to the MFA. Indeed, the interim government scaled
back Vondra's position in such a manner that Stephan Fule,
who assumed the position, is simply the Minister of European
Affairs while Jan Kohout was made Deputy Prime Minister and
Foreign Minister. From the announcement of the new
government, Kohout moved to transfer much of the
responsibility for Summit preparations and substantive issues
from Vondra's office to the MFA. Also of note, the GoCR
hired substantial numbers of young Czech professionals to
support the Presidency, augmenting staffing in such places as
the DPM's office as well as the MFA (and key Embassies such
as their mission to Brussels which more than doubled in
size). While many of the most talented of these officials
will be kept on, we are already seeing some departures,
particularly in the logistical departments within the
different ministries. Within the next six months there also
will be a substantial number of MFA officials rotating to new
posts, due in part to the recent lifting of the MFA freeze in
transfers put in place last year to minimize transitions and
staffing gaps during the EU Presidency.

--------------
Klaus as an Ongoing Distraction
--------------

9. (SBU) President Klaus, whose position is largely
ceremonial in a normally functioning government, has assumed
an increasingly significant role during this interim
government. This spring he represented the Czech Presidency

PRAGUE 00000414 003 OF 003


at several EU summits. He has also created difficulties for
the GoCR with the rest of the EU because he has been slow to
sign several treaties - such as the accession to the
International Criminal Court, which sat on his desk from last
fall until July 9, 2009, and the Lisbon Treaty, which passed
out of parliament to him in May 2009. Klaus's foot-dragging
did not help Czech credibility with the rest of their EU
partners as the Czechs were the last EU member state to
accede to the ICC. While the Lisbon Treaty only passed
through the Czech Parliament in May, Klaus' numerous
objections make it all but certain that the Czechs will be in
a similar, although much more awkward, position with their EU
counterparts if Klaus holds up implementation of EU
structural reforms defined in the Lisbon Treaty with his
non-action.

--------------
Comment: An Ally Willing to Advance Issues of USG Interest
--------------

10. (SBU) The Czechs, who have always been strong
Euro-Atlanticists, continue to engage in several key areas
within the EU, where they may be able to have more direct
influence over the shape of events to come. Arguably they
could be even more significant allies to work with in the
upcoming year, now that they believe they better understand
how to maneuver the levers of power within the EU and can
revert to advancing their bilateral views without the
constraint of having to represent the EU middle ground.
However, the GoCR recognizes that it must surmount the
credibly gap that exists with partners, not helped by the
fall of the government, nor some of the actions of President
Klaus.
Law