US embassy cable - 05BRUSSELS2440

UNCLAS SECTION 01 OF 02 BRUSSELS 002440 
 
SIPDIS 
 
DEPT FOR EUR/ERA 
 
E.O. 12958: N/A 
TAGS: PGOV, EFIN, UK, LU, EUN, USEU BRUSSELS 
SUBJECT: Juncker, Blair Debate EU Future 
 
1. SUMMARY:  Outgoing EU Presidency Prime Minister 
Jean-Claude Juncker of Luxembourg and incoming 
Presidency Prime Minister Tony Blair of the UK 
outlined different visions for Europe and 
perceptions of the "European crisis" during speeches 
before the European Parliament on June 22-23. 
Juncker blamed Blair for the failure to agree on the 
2007-2013 EU budget at the June 16-17 EU Summit, and 
hinted that Blair was against a political Europe. 
Blair defended his commitment to the EU as a 
political project, but called for an economically 
more competitive Europe.  MEPs gave Juncker a 
standing ovation; cool at the beginning to Blair, 
most MEPs warmed up to his vision and engagement, 
but stressed that they would await actions to back 
up his words.  END SUMMARY. 
 
EP AT CENTER OF DEBATE ON EU'S FUTURE 
------------------------------------- 
 
2. The EP was at the center of Europe's political 
and media attention on June 22 and 23 when Juncker 
and Blair made passionate addresses to MEPs.  This 
debate came after the failure of the European Summit 
on June 17 to agree on the EU budgetary framework 
for 2007-2013, following the two "No" refernda on 
the EU Constitution in France and The Netherlands, 
and after an extraordinary few days of public 
sniping between London on the one side and Paris, 
Berlin and Luxembourg on the other. 
 
JUNCKER BLAMES BLAIR FOR SUMMIT FAILURE 
--------------------------------------- 
 
3. In his speech on June 22, for which he received a 
long standing ovation, Juncker launched a blistering 
attack on the British Prime Minister, blaming Blair 
(without ever mentioning his name) for the failure 
to agree on the 2007-2013 EU budget framework at the 
June 17 EU Summit.  In an hour-long account to MEPs, 
Juncker accused Blair of using false arguments about 
the scale of farming subsidies and misleading the 
public about the Luxembourg Presidency's proposals 
to try and forge a deal.  MEPs strongly welcomed 
Juncker's "honest and frank" account. One MEP noted: 
"in 26 years in this chamber, I have never heard 
such open explanations of what really went on behind 
the closed doors of the Council negotiations." 
 
JUNCKER'S VISION OF A SPLIT EUROPE 
---------------------------------- 
 
4. "Europe is in a state of deep crisis" said 
Juncker, adding that "those who bear the 
responsibility for this will tell you that it is not 
true -- but they are wrong!"  Juncker said there 
were now two opposing viewpoints in the EU: "those 
who believe that there is too much Europe already, 
and those who believe there is not enough of it." 
He added, "I belong to the second category." 
 
BLAIR CALLS FOR RENEWED EU LEADERSHIP 
------------------------------------- 
 
5. On June 23, Blair responded by outlining his 
vision for the upcoming UK Presidency of the EU.  He 
underlined his commitment to a strong EU: "I am a 
passionate pro-European and I have always been."  He 
continued: "I believe in Europe as a political 
project.  I believe in Europe with a strong and 
caring social dimension.  I would never accept a 
Europe that was simply an economic market."   Blair 
stressed that the problems faced by Europe were 
caused by "a lack of political leadership," adding 
"the purpose of political leadership is to get the 
policies right for today's world."  He promised to 
launch a broad political debate to try to reach a 
consensus to move Europe ahead.  "It is time to give 
ourselves a reality check.  To receive a wake-up 
call.  The people are blowing the trumpets around 
the city wall.  Are we listening?" he said. 
 
BLAIR: EU MUST REFORM FOR THE FUTURE 
------------------------------------ 
 
6. In answer to Juncker's accusations, Blair made 
clear that he was the first UK leader who was 
willing, under the right conditions, to re-negotiate 
the UK rebate.  He said he "never asked to 
renegotiate the Common Agricultural Policy 
overnight."  He called for giving the EU the right 
budget to invest in knowledge, active labor market 
policies, science and innovation, urban regeneration 
and help for small businesses.  He also called for 
modernizing the EU budget before 2013.  Many, 
including Commission President Jose Manuel Barroso, 
expressed doubts that Blair could achieve this while 
pushing for budget reductions. 
 
BLAIR CALLS FOR STRONG EU FOREIGN POLICY 
---------------------------------------- 
 
7. Blair also called for enhancing European defense 
capabilities to "prepare for more missions of 
peacekeeping and enforcement as a necessary part of 
an effective EU foreign policy."  He welcomed the 
agreement to double the aid to Africa and called for 
an increased EU role in the debate on climate 
change, promoting multilateral agreements and 
advancing the Middle East Peace Process.  He said: 
"A strong Europe would be an active player in 
foreign policy, a good partner of course to the 
U.S., but also capable of demonstrating its own 
capacity to shape and move the world forward." 
 
MCKINLEY