US embassy cable - 05PARIS6961

UNCLAS SECTION 01 OF 03 PARIS 006961 
 
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TAGS: OPRC, KMDR, FR 
SUBJECT: MEDIA REACTION REPORT - Nuclear Issues - Nobel Prize 
German Elections - Chancellor Merkel Economic Issues - 
Agricultural Subsidies - Economic Patriotism 
PARIS - Tuesday, October 11, 2005 
 
 
(A) SUBJECTS COVERED IN TODAY'S REPORT: 
 
Nuclear Issues - Nobel Prize 
German Elections - Chancellor Merkel 
Economic Issues - Agricultural Subsidies - Economic Patriotism 
 
B) SUMMARY OF COVERAGE: 
 
"Germany in the Merkel Era" is the front-page headline in Le 
Figaro, which reflects today's coverage. Liberation headlines: 
"A First in Germany" while Le Monde simply notes: "Merkel To 
Succeed Schroeder." La Croix headlines: "Merkel, a Challenge 
for the Big Coalition." The future of the coalition is the 
subject of several editorials, with commentators raising many 
questions about its chances for success. (See Part C) 
 
The Nobel Prize attributed to the IAEA and El-Baradei leads Le 
Monde to comment on the "Schizophrenic approach of the Agency 
towards the nuclear" but concludes that El-Baradei managed a 
"good equilibrium." (See Part C) 
 
Rob Portman's op-ed in the Financial Times is noted in several 
articles, including Le Monde and Les Echos. The U.S. offer to 
reduce agricultural subsidies by 60 percent is widely noted. 
(See Part C) 
 
Globalization and "economic patriotism" is the theme of an op- 
ed by Phil Gordon of the Brookings Institute in Le Figaro (See 
Part C) which devotes a report to Defense Minister Allio-Marie 
and her stance on economic patriotism and its limitations: 
"The Minister warned against an excess of `nationalism' and 
`protectionism' in economic matters. but also against being 
`too nave.' `Every country is protecting itself against 
foreign intrusions. The defense sector is one of those that 
naturally fall into the category.' The Minister indicated that 
three key sectors needed to be protected: `combat planes, 
space technology and secured communications.' Alliot-Marie's 
economic patriotism has a European defense dimension as she 
said: `I send this message also to our American friends; our 
intention is not to raise barriers around Europe. Nevertheless 
we intend to remain the masters of our destiny and ask for 
equal treatment on economic and industrial issues.' There is 
indeed room for growth, since Europe imports 30 percent of its 
defense equipment from the U.S., whereas the U.S. imports only 
one percent." 
 
(C) SUPPORTING TEXT/BLOCK QUOTES: 
 
Nuclear Issues - Nobel Prize 
 
"Nuclear Nobel" 
Left-of-center Le Monde in its editorial (10/11): "What we 
will remember is that the IAEA's efforts are equally divided 
between fighting against the dissemination of nuclear weapons 
and the promotion of commercial nuclear electricity. Herein 
lies the ambiguity: fighting against WMD in Iran and North 
Korea while praising the merits of the `clean' atom. El- 
Baradei has managed this difficult, almost schizophrenic, 
balancing exercise fairly well, since a commercial reactor is 
potentially a source of nuclear dissemination. Washington's 
formal congratulations cannot hide the fact that President 
Bush is probably not pleased with the choice. After all, the 
IAEA may one day go after Rumsfeld and his `mini nukes.' But 
conversely, the choice is a sign that the international 
community will not tolerate the emergence of new nuclear 
powers." 
 
German Elections - Chancellor Merkel 
 
"The Battle for the Chancellorship" 
Pascal Aubert in centrist La Tribune (10/11): "What Merkel has 
just accomplished, becoming Germany's first woman Chancellor 
and getting rid of her old rival, was, paradoxically, the 
easiest of her tasks, even if the negotiations took three 
weeks. The future will be much harder. Merkel's friends and 
partners cannot afford to make a single mistake or to give in 
to band-aid solutions. How will Merkel be able to succeed 
while not reneging on her campaign promises? How can she find 
the necessary compromises and not fail in the much-needed 
reforms? Political cohabitation, a form of government well 
known in France, is unforgiving for political leaders. Angela 
Merkel will soon be making that discovery." 
 
"German questions" 
Pierre Rousselin in right-of-center Le Figaro (10/11): "During 
her campaign, Merkel warned that the coalition, which she is 
now getting ready to lead, was a recipe for inaction just when 
her country was in dire need of change. Will Merkel be able to 
defuse her own past pessimism? It is clear that the joint 
program will be less ambitious. But seen from Paris it has the 
advantage of going in the direction of economic progress and 
international competitiveness. But the question remains: will 
Merkel become the hostage of her former adversaries who have 
become allies by necessity? The composition of her government 
shows worrisome signs of blackmail operated by her predecessor 
who has imposed Social-Democrats to key posts." 
 
"A Fight" 
Gerad Dupuy in left-of-center Liberation (10/11): "Before 
Angie there was Maggie. But Germany is not threatened with a 
wave of uncontrollable ultra-liberalism. The voters put an end 
to that when they imposed a sharing of the power between left 
and right, between the need to adapt Germany to international 
competition and their desire to maintain a high level of 
social protection. But this desire to reconcile opposites does 
not provide Merkel with the necessary magic wand to erase the 
contradictions raised by this mix. The `big coalition' will be 
an everyday fight." 
 
Economic Issues - Agricultural Subsidies - Economic Patriotism 
 
"The U.S. Urging the EU to Lower its Agricultural Subsidies" 
Aude Marcovitch in right-of-center Le Figaro Economie (10/11): 
"The Trade and Agriculture Ministers who traveled to Zurich 
were not disappointed. The U.S. has ended its streak of 
declarations of intentions and has begun to talk figures. Rob 
Portman's declarations left more than one participant 
speechless when he said the U.S. was ready to cut its 
subsidies by 60 percent. in the next 5 years. Thanks to this 
offensive approach, the U.S. has taken the upper hand in the 
negotiations and is sending the ball into the European camp." 
 
"Concessions on Agricultural Subsidies" 
Laurence Tovi in right-of-center Les Echos (10/11): "The 
figures put forth by Washington and Brussels were immediately 
criticized by Oxfam, which criticized the hypocrisy of both 
sides. According to its calculations, Oxfam maintains that the 
U.S. proposal will in the end only amount to cutting 2 percent 
of the subsidies. In addition, both Washington and Brussels's 
offers have strings attached. Both sent barely veiled warnings 
to the developing countries." 
 
"Teaching Globalization to the French" 
Phil Gordon of the Brookings Institute in right-of-center Le 
Figaro (10/11): "The French PM has invented the term `economic 
patriotism' to reassure the French. Why can't French leaders 
be more honest and explain that a modern economy must be an 
open economy? There are at least three reasons why the French 
reject globalization. First, because it directly threatens the 
country's tradition of an economy led by the state. The second 
is tied to France's attachment to its culture and identity, 
which they fear is threatened by Americanization. And finally, 
the French are resisting globalization because it threatens 
their idea of equality which is one of France's founding 
principles. What France needs is someone to teach it about 
globalization and not to have its old prejudices reinforced." 
STAPLETON