US embassy cable - 02ROME1517

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001517 
 
SIPDIS 
 
E.O. 12958: DECL: 03/25/2007 
TAGS: EAID, ECIN, ECON, IT, KSEI, ECIN, ECON, IT, KSEI, PREL, PRELEAID 
SUBJECT: ITALY UPBEAT (SORT OF) ON STABILITY PACT 
 
 
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PAGE 02        ROME  01517  01 OF 02  261113Z 
REF: (A) STATE 38818 (B) 01 ROME 6024 
 
CLASSIFIED BY: CLASSIFIED BY A/ECMIN DAVID MULENEX; REASON 1.5 B/D. 
 
1. (C) SUMMARY.  THE GOI BELIEVES THAT SOUTHEAST EUROPE 
COOPERATIVE PROCESS STATES HAVE VERY RECENTLY BECOME MUCH 
MORE REALISTIC IN EVALUATING THE ORGANIZATION'S POTENTIAL AND 
THE SEECP, AS A RESULT, IS POISED TO BECOME A MUCH MORE 
EFFECTIVE ADVOCATE FOR REGIONALISM BOTH WITHIN THE STABILITY 
PACT AND OTHERWISE.  ITALY'S ENCOURAGEMENT, HOWEVER, IS NOT 
LIKELY TO INCLUDE MONEY.  THE ITALIAN CHAIR OF WORKING TABLE 
II IS SIMILARLY ENTHUSED ABOUT SEECP'S CAPACITY TO TRANSCEND 
THE SPLINTERED ADVOCACY FOR LOCAL PET PROJECTS HE FEELS HAS 
HINDERED STABILITY PACT EFFORTS.  THE GOI BELIEVES STABILITY 
PACT COORDINATOR BUSEK WILL PROVE A GOOD CHOICE IF HE TRIAGES 
SEVERAL OF HIS DISTRACTING OUTSIDE JOBS.  END SUMMARY. 
 
2. (SBU) THE SOUTHEAST EUROPE COOPERATIVE PROCESS (SEECP) HAS 
VERY RECENTLY LOWERED ITS AMBITIONS IN LIGHT OF AVAILABLE 
RESOURCES AND, AS A RESULT, COULD BECOME AN EFFECTIVE 
FACILITATOR OF REGIONAL PROJECTS, MFA STABILITY PACT (SP) 
COORDINATOR ALLESANDRO PIETROMARCHI TOLD POLOFF AND ECONOFF 
ON MARCH 20.  APPLAUDING WHAT HE SEES AS A NEW SEECP REALISM 
AS ALBANIA PREPARES TO HAND THE PRESIDENCY TO YUGOSLAVIA, 
PEITROMARCHI SAID, "IF YOU HAD ASKED ME 20 DAYS AGO, I WOULD 
HAVE BEEN PESSIMISTIC; NOW I THINK THINGS ARE COMING ALONG 
FINE."  HE SAID SEECP HAS DROPPED PLANS FOR "GLORIOUS 
STRUCTURES" SUCH AS A POLITICAL DIRECTORS COMMISSION IN FAVOR 
OF MORE REALISTIC GOALS SUCH AS (FINALLY) NAMING A REGIONAL 
REPRESENTATIVE TO SP'S INFORMAL CONSULTATIVE COMMITTEE. 
 
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3. (SBU) PIETROMARCH SAID ITALY HAS NO "VEHICLE" FOR FUNDING 
EXPENSES FOR A REGIONAL SECONDEE.  REMINDED THAT MFA HAD 
CREATIVELY FOUND SOME MONEY A COUPLE OF YEARS AGO TO PAY THE 
EXPENSES OF TWO ITALIAN CUSTOMS AGENTS SECONDED TO THE 
SOUTHEAST EUROPE COOPERATIVE INITIATIVE (SECI), HE SAID THAT 
WAS EASIER BECAUSE THEY WERE ALREADY ON THE GOI PAYROLL AND, 
BESIDES, "WE WANTED TO FIND THAT MONEY."  IN THIS CASE, HE 
SUGGESTED, THE SEECP STATES COULD, AS THEY EVIDENTLY HAVE IN 
THE PAST, SECOND TO THE STABILITY PACT  OFFICIALS ALREADY 
POSTED TO BRUSSELS AND THEREBY AVOID ADDITIONAL EXPENSES. 
 
4. (SBU) PIETROMARCHI SAID HE HAS NO STRONG FEELINGS EITHER 
WAY ON THE MECHANICS OF SEECP PARTICIPATION IN SP.  HE WOULD 
NOT OPPOSE AN SEECP ROLE IN SELECTING A REPRESENTATIVE TO THE 
INFRASTRUCTURE STEERING COMMITTEE OR THE INFORMAL 
CONSULTATIVE COMMITTEE IF THE STATES OF THE REGION WANT IT. 
HE DOES NOT THINK SUCH A ROLE WOULD UNDULY LIMIT THE POWERS 
OF SP SPECIAL COORDINATOR ERHARD BUSEK. 
 
5. (C) PIETROMARCHI OFFERED A QUALIFIED ENDORSEMENT OF 
BUSEK'S EARLY PERFORMANCE, SAYING HE TRUSTS BUSEK ("OUR MAN 
IN THE REGION") AND BELIEVES HIM TO HAVE AN IDEAL MIX OF 
COMPETENCE AND EXPERIENCE BUT JUDGES HIM VERY HARSHLY FOR 
WHAT SEEMS TO BE A SCATTERED APPROACH TO SP WORK.  ASKED 
WHETHER HE THOUGHT BUSEK SHOULD CONTINUE TO SPLIT HIS TIME 
BETWEEN SP AND SECI, PIETROMARCHI REPLIED THAT BUSEK ACTUALLY 
HOLDS FIVE JOBS SIMULTANEOUSLY AND THAT THE SITUATION IS 
COMPLETELY UNTENABLE.  PIETROMARCHI CALLED THE BRUSSELS SP 
OFFICE "AWFUL" FROM A BASIC BUSINESS PERSPECTIVE WITH THE 
STAFF INCOMPETENT AND MANAGERIAL OVERSIGHT NONEXISTENT.  HE 
BELIEVES SECI, AT A MINIMUM, SHOULD BE FOLDED INTO SP. 
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6. (SBU) STABILITY PACT WORKING TABLE II CHAIR FABRIZZIO 
SACCOMANNI WHOLEHEARTEDLY ENDORSED AN ENHANCED ROLE FOR SEECP 
IN SP.  IN A MARCH 15 MEETING IN HIS BANK OF ITALY OFFICE 
WITH ECOUNS AND ECONOFF, SACCOMANNI ASSURED THAT THE STATES 
OF THE REGION ENDORSE SUCH A ROLE FOR SEECP.  HE ENVISIONED 
IN PARTICULAR SEECP HELPING TO MOVE ITS MEMBER STATES TOWARD 
A REGIONAL ORIENTATION THAT COULD MAKE THE WORKING TABLE 
MEETINGS HE CHAIRS FAR MORE EFFICIENT BY OBVIATING LENGTHY 
INTERVENTIONS BY INDIVIDUAL STATES IN FAVOR OF "COMPETING" 
PET PROJECTS. 
 
7. (C) LIKE PIETROMARCHI, SACCOMANNI IS GUARDED IN HIS 
EXPECTATIONS OF THE CAPACITY OF SEECP TO TRANSCEND 
LONG-ESTABLISHED BEHAVIOR PATTERN PERMUTATIONS AMONG ITS 
MEMBER STATES.  ALTHOUGH HE FAVORS SEECP'S ASCENDANCY, HE 
CAUTIONED THAT THE GROUP'S PARTICIPATION IN SP'S 
INFRASTRUCTURE STEERING GROUP COULD CLOG UP DELIBERATIONS 
THERE.  HE SAID THE ISC MERITS PRESERVATION BECAUSE IT HAS 
MADE UNWIELDY AND DECREASINGLY EFFECTIVE DONOR CONFERENCES 
UNNECESSARY BY INSTITUTIONALIZING PROJECT REVIEWS BY THE SP 
AND THE FIVE INVOLVED INTERNATIONAL FINANCIAL INSTITUTIONS. 
COMMENT.  THE ISC IS SACCOMANNI'S BABY, BORN AT A TIME (REF 
B) SP WAS UNDER GREAT PRESSURE BY SOME OF ITS MEMBERS (MOSTLY 
FRANCE) TO GET OUT OF THE INFRASTRUCTURE BUSINESS ALTOGETHER. 
 
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                           CONFIDENTIAL     PTQ2967 
 
PAGE 01        ROME  01517  02 OF 02  261113Z 
ACTION EB-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      COME-00  CTME-00  INL-00   DODE-00  DOTE-00  SRPP-00  DS-00 
      EUR-00   EXIM-01  E-00     FAAE-00  VC-00    FRB-00   H-01 
      TEDE-00  INR-00   ITC-01   L-00     VCE-00   AC-01    NSAE-00 
      NSCE-00  OMB-01   OPIC-01  PA-00    PC-01    PM-00    PRS-00 
      ACE-00   P-00     SCT-00   SP-00    STR-00   TRSE-00  USIE-00 
      PMB-00   DSCC-00  DRL-02   G-00     NFAT-00  SAS-00     /010W 
                  ------------------7A96A2  261114Z /38 
P 261027Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 2942 
INFO EU CANDIDATE STATES COLLECTIVE 
EUROPEAN POLITICAL COLLECTIVE 
AMEMBASSY BELGRADE 
AMEMBASSY LJUBLJANA 
AMEMBASSY TIRANA 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 02 OF 02 ROME 001517 
 
SIPDIS 
 
E.O. 12958: DECL: 03/25/2007 
TAGS: EAID, ECIN, ECON, IT, KSEI, PREL 
SUBJECT: ITALY UPBEAT (SORT OF) ON STABILITY PACT 
 
 HE BELIEVES THE ISC HAS LEGITIMIZED SP'S CONTINUED 
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PAGE 02        ROME  01517  02 OF 02  261113Z 
INFRASTRUCTURE ROLE, WHICH HE HAS ALWAYS BELIEVED IS HIS 
WORKING TABLE'S PRIMARY RAISON-D'ETRE, AND HE CAN BE EXPECTED 
TO FIERCELY RESIST ANY DIMINISHING OF ITS EFFICIENCY EVEN IF 
BROUGHT ABOUT BY SEECP PARTICIPATION. 
SEMBLER 
 
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 2002ROME01517 - Classification: CONFIDENTIAL