US embassy cable - 05ROME3598

UNCLAS ROME 003598 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, EINV, EU, IT, PGOV, PHUM, PREL 
SUBJECT: BMENA FUND FOR THE FUTURE: ITALY SAYS NO EIB 
DECISION ON OCTOBER 27 
 
REF: REF A: SECSTATE 189774 REF B: ROME 3228 
 
1.  (SBU) Econ MinCouns discussed European Investment Bank 
(EIB) participation in the Fund for the Future (REF A) on 
October 25 with Ignazio Angeloni, Finance Ministry Director 
General for International Finance Relations, and Stefania 
Bazzoni, Office Director for EIB Affairs.  Both thought that 
the EIB participation through the Facility for 
Euro-Mediterranean Investment and Partnership (FEMIP) could 
not be approved by a decision of the Board of Directors 
alone.  Rather, an EIB donors meeting - as occurs 
periodically on the margins of the EIB Board meetings -- 
would be required, and the first opportunity for such a 
donors gathering would be November 22.  Consequently, in the 
Italian view, there could be a general discussion of the Fund 
for the Future on October 27, but no final decision on 
participation.  Angeloni further noted that the FEMIP Trust 
Fund currently only has 20 million euros, so that any 
participation would be a "symbolic" sum, compared to the USG 
contribution. 
 
2.  (SBU) While clearly interested in the Fund for the 
Future, Angeloni made clear that Italy believes that a great 
deal more discussion of Fund mechanics and other specifics is 
necessary.  He said, for example, he would welcome further 
detail on the advantages of the Fund over existing mechanisms 
to support economic growth in the Middle East.  He also 
wondered how the Fund for the Future would coordinate with 
the UK's initiative for economic growth in the West 
Bank/Gaza.  Bazzoni noted that program expansion beyond Egypt 
and Morocco would be desirable.  Angeloni also asked if other 
Mediterranean countries had agreed to provide funds. 
 
3. (SBU) Angeloni concluded by saying that, even though no 
action could be taken at the October 27 Board meeting, Italy 
could assist in "softening" the EIB to pave the way for 
eventual transfer of FEMIP funds to the Fund. 
 
4.  (SBU)  When we contacted the Foreign Ministry again on 
the Fund, Office Director for the Middle East and 
Mediterranean (DG for Development Cooperation) Federica 
Ferrara-Bravo stated that their position remained that 
reported in Ref B:  political support, but no firm decision 
yet on financial participation. 
SPOGLI