MEDIA REACTION: IRAN, UKRAINE, EU;BERLIN

UNCLAS SECTION 01 OF 03 BERLIN 000170 STATE FOR INR/R/MR, EUR/PAPD, EUR/PPA, EUR/CE, INR/EUC, INR/P, SECDEF FOR USDP/ISA/DSAA, DIA FOR DC-4A VIENNA FOR CSBM, CSCE, PAA "PERISHABLE INFORMATION -- DO NOT SERVICE" SIPDIS E.0. 12958: N/A TAGS: OPRC KMDR IR UP EU SUBJECT: MEDIA REACTION: IRAN, UKRAINE, EU;BERLIN ¶1. Lead Stories Summary ¶2. (Iran) Nuclear Program, Opposition ¶3. (Ukraine) Outcome of Elections ¶4. (EU) Deficit Worries ¶1. Lead Stories Summary ZDF-TV's early evening newscast Heute opened with a story on the dispute over nuclear power and ARD-TV's early evening newscast Tagesschau opened with a story on the dispute between the CDU and SPD over unemployment policy. Frankfurter Allgemeine and Die Welt led with the outcome of the elections in Ukraine. Berliner Zeitung and Tagesspiegel led with stories on the FDP's policy on nuclear energy. Many newspapers led with stories on today's landmark decision by the Constitutional Court on social benefits. Editorials focused on the outcome of the elections in Ukraine, the FDP's crisis meeting, and the labor market. ¶2. (Iran) Nuclear Program, Opposition ZDF-TV's Heute (2/8) newscast reported that "the nuclear dispute with Iran is escalating" after Iran formally told the IAEA it would begin producing 20 percent enriched uranium as of today. Sddeutsche (2/9) headlined "Iran increases uranium enrichment" and noted: "With it, Iran realizes the escalation President Ahmadinejad threatened over the weekend." While the world is looking for solutions, Iran is gambling for time and continues its nuclear program," ZDF-TV's Morgenmagazin stated. Die Welt headlined: "[Chancellor] Merkel prepared for tougher approach on Iran." Handelsblatt headlined "IAEA: Iran can enrich uranium only with foreign help," noting: "Tehran's project continues to cause quite a stir. However, experts point out that the mullah regime will face technical problems." Tageszeitung headlined: "Iran wants to enrich uranium, giving in still possible," adding in the report: "Regardless of the massive criticism by the international community, Iran wants to enrich uranium to 20 percent." Tagesspiegel (2/9) commented: "The Munich Security Conference is probably the turning point of Iran's relations with the international community. Until the weekend, Tehran's western interlocutors were prepared to believe that Iran was to some extent willing to reach a compromise in the dispute over the nuclear program. This phase is over after the game the conciliatory Mottaki and the hardliners in the president's office played over the weekend. Apart from China, all powers at the UN Security Council now doubt that that the Iranian government is honest and assume that they are not interested in the civilian use of nuclear power, but want to construct a nuclear bomb. Quick and tough trade sanctions, the establishment of comprehensive missile defense systems in neighboring countries and a universal restriction on the freedom of Iranian diplomats to travel will be the result. The Iranian people will probably particularly suffer under these measures. Rulers of dictatorships know how to live a sweet life. However, a war against Iran would hit the people even worse, without guaranteeing that such an attack could completely destroy the nuclear plants." Berlin-based tabloid B.Z. (2/9) editorialized: "The Tehran mullahs are increasing their aggressive policy unrestrainedly. First, they suppress the freedom movement with blood and execute its leaders. Then, they announce the production of weapons-grade uranium. Yesterday, they began to mass produce drones that can reach Israel and are, simultaneously, developing an air defense system. And everybody is watching them without taking action: the UN, NATO, the U.S. and the EU. What can the people of Iran hope for?" ¶3. (Ukraine) Outcome of Elections All papers (2/9) carried reports on the outcome of the presidential BERLIN 00000170 002 OF 003 elections in Ukraine. Frankfurter Allgemeine headlined: "Yanukovich Winner of the Presidential Elections in Ukraine." Sueddeutsche carried the headline: "Tymochenko Concedes Defeat," and reported that "it is right that Tymochenko wanted to upgrade everything Russian, but, in the end, she lacked the necessary votes from western Ukraine where Yanukovich fought her very hard. Many disappointed supporters of the orange revolution did not show up at the ballots. According to media in Kiev, Tymochenko failed especially because she did not present a plan on how to overcome the consequences of the financial crisis." Die Welt headlined: "Runoff Elections in Ukraine: Blue Wins Over Orange," while Financial Times Deutschland headlined: "Ukraine Heading For New Power Struggle." Handelsblatt (2/9) dealt with Ukraine's financial situation and argued: "Compared to the mostly home-made problems in Ukraine, the concerns about the financial stability of Greece or Portugal are almost ridiculous. The biggest country in Europe is threatened with state bankruptcy. The IMF has stopped the payment of an emergency loan until political stability is visible. And how many private donors are now willing to grant a country at the abyss additional financial means? Standard & Poors no longer ruled out a default scenario for Ukraine yesterday. It is everything but certain that Ukraine will find greater stability after the elections." Frankfurter Allgemeine (2/9) focused on the future role of Julia Tymochenko and argued: "it is not nice, but also it is not a disaster that Julia Tymochenko has now been defeated in a fair election campaign by Victor Yanukovich, who wanted to come to power four years ago with lies and deception. Tymochenko would do her country a great service if she accepted the defeat and would then enter the opposition benches in a constructive way. But over the past few months, Julia Tymochenko's behavior has raised doubts about whether she is really ready to pass this test. It is likely that she would be the better president for a democratic Ukraine than Yanukovich, but now she must prove that she is the better opposition leader." Sueddeutsche Zeitung (2/9) opined under the headline: "Defeat in Orange" that "Victor Yanukovich profited from the fierce lasting controversy between the former allies Yushchenko and Julia Tymochenko. Now Yanukovich's moment has come. He has indicated that Ukrainian sovereignty has absolute priority. It may be possible that he will now become an even more uncomfortable partner for Russia than Yushchenko and Tymochenko. The oligarchs behind Yanukovich have been trying to move closer to the EU for quite some time. Financial Times Deutschland (2/9) editorialized under the headline: "The Lesser Evil," and judged: "As a matter of fact, there is no reason for the West to regret the outcome of the presidential elections in Ukraine. On the contrary, unlike in 2004, there have been no reports on electoral fraud...and many of government leader Tymochenko's proposals were evidence of desperate populism rather than responsible governance. At the same time, the many votes for Tymochenko demonstrate in an unmistakable way that a great number of Ukrainians stand behind the democratization process. Yanukovich still has to show whether he has changed to the camp of democrats. As president he must now stick to new rules of the game, including the respect for the office of prime minister, and not call for her resignation, as he did yesterday. Europe must be worried only if he does more than making such abuses. But if he respects the balance of forces, a representative of the Orange Revolution may have lost the election - but not the revolution itself." According to regional daily Braunschweiger Zeitung (2/9),"the color orange which stands for a political new beginning and for reform, will fade under the new President Yanukovich. The pro-Russian politician has one advantage: For him it is not necessary to deal with a political superstructure of democratic hopes. He does not BERLIN 00000170 003 OF 003 emphasize them at all. He is a declared NATO opponent and for him the promise is enough that he will do away with the mess that the pro-western forces created. This could succeed for a brief period of time, for a convincing orange line has never been visible." Regional daily Dresdner Neueste Nachrichten (2/9) wondered: "Is Yanukovich the right president? The new president bears the stigma of having manipulated previous elections. But not even this stigma prevented the majority of Ukrainian voters to vote for him. The previous rulers failed and this is too obvious. A country such as Ukraine can find its place only in a balance of interest between the West and the East. Yanukovich is probably the best candidate to achieve this goal" ¶4. (EU) Deficit Worries Under the headline: "Confidence is Gone," mass-circulation, right-of-center tabloid Bild-Zeitung of Hamburg (2/9) editorialized: "The euro is shaking, its exchange rate as soft as wax and that is what speculators are waiting for. The confidence is gone since it has become clear that Greece bought its membership with figures that were based on lies and deception. And the euro states are almost powerless now. Billions of fines as the last resort? The Greeks will only smile at such a move. They are in the red with German, French and Swiss banks with almost 170 billion euros. Now it will become clear that the euro zone was extended too fast and too easily on countries that are unable to follow its tough course. This should be a lesson for Brussels. Not everyone who wants the euro also deserves the euro." MURPHY