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UNCLAS        BERLIN 02948

SIPDIS
CX2BERLN:
    ACTION: POL
    INFO:   ECON AMB JIS DCM CHRON FAS DAO DAOBONN PAO
CXBERLIN:
    ACTION: POL
    INFO:   ECON AMB JIS DCM CHRON FAS DAO DAOBONN PAO

DISSEMINATION: POL
CHARGE: PROG

APPROVED: POL:JRATHKE
DRAFTED: POL:TFELCHLIN,POL:BM
CLEARED: POL:MMARTIN, ECON:DNEUMANN

VZCZCRLI465
PP RUEHC RUEHZL
DE RUEHRL #2948/01 2791223
ZNR UUUUU ZZH
P 061223Z OCT 06
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 5579
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 BERLIN 002948 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EU GM
SUBJECT: CHANCELLOR MERKEL'S SPEECH ON GOALS FOR EU 
PRESIDENCY 
 
REF: A) BERLIN 2893 B) BERLIN 1651 C) BERLIN 2782 
 
¶1. (U) Summary.  Chancellor Merkel spoke on September 22 at a 
Bertelsmann Foundation Conference on the future of Europe and 
highlighted five key goals for the EU as her government 
prepares to assume the EU presidency in the first half of 
¶2007.  First, the EU is committed to democracy, rule of law 
and human rights and these values will form the basis for 
dialogue with non-EU countries.  Second, for the time being 
no new countries would be considered for membership, except 
for those that already have an EU "perspective" (Turkey and 
the Balkans) and all future members must fulfill all 
membership criteria completely.  Third, the EU must seek 
reforms to further energize the European economy and internal 
market.  Fourth, Europe, in collaboration with the U.S. and 
NATO, should continue to expand on its global engagement. 
Fifth, the chancellor hoped for ratification of the EU 
constitution by 2009, adding that it should have a provision 
for an EU Foreign Minister.  End Summary. 
 
EU Values 
 
¶2. (U) Merkel began her speech by stating the EU is a 
community of values and should use these values (such as 
freedom, democracy, rule of law and respect for human rights) 
as a basis for conducting dialogue with non-EU countries, 
including inter-religious and intercultural dialogue.  She 
specifically called for a EU-wide dialogue with Islam. 
 
¶3. (U) Speech excerpts:  "Europe must make its mind up about 
its values... We all share common values, such as freedom, 
democracy, rule of law and respect for human rights... We 
must discuss them with other countries that are not members 
of the European Union, and our relations must reflect these 
values. I believe that the significance of these values must 
be an important issue for the 50th anniversary of the Treaty 
of Rome.  We will prepare a political declaration for the 
occasion... Regarding the question of values it is also 
important for the European Union to pursue an intercultural 
and inter-religious dialogue.  In Germany, Interior Minister 
Schaeuble has begun to pursue this dialogue with the Islam 
Conference (see Ref A). I think that the EU should make clear 
that is also ready to begin such a dialogue. This is not easy 
for two reasons: Because we ourselves have problems agreeing 
on common grounds and because we lack knowledge of other 
cultures and religions." 
 
EU Expansion 
 
¶4. (U) Merkel acknowledged differences of opinion in the EU 
on expansion but suggested that for the foreseeable future no 
new members would be added outside the Balkans. Negotiations 
with Turkey would continue, but Turkey needs to fulfill all 
criteria especially in regard to the Cyprus issue.  The EU 
needs a more active neighborhood policy in light of its 
inability to offer realistic prospects of membership for a 
long time in Eastern Europe.  See Ref B for more details on 
this point. 
 
¶5. (U) Speech excerpts:  "My second point:  Europe must 
clarify its inner and outer contours because Europe will not 
master the challenges of a rapidly changing world without a 
clear idea of its geographic extent...I believe it is right 
to say that we cannot make any more promises regarding new 
membership--with the exception of the Balkans. This is a 
tough statement because, with a view toward Ukraine, our 
Polish and Baltic neighbors might have different ideas.  But 
I want to stand by this because I believe we must make sure 
that the countries in the EU are viable and compatible." 
 
¶6. (U) Speech excerpts cont.:  "For those who pursue entry 
negotiations, established criteria must be applied. One of 
the criteria is the ability of the current European Union to 
take on new members. That is how we understand the Copenhagen 
criteria.  We are conducting entry negotiations with Turkey, 
but it is necessary to meet all of the criteria.  I do not 
want to go into any details here, but the issue of Cyprus 
concerns us.  This question must be resolved...It is all the 
more important that we develop a consistent policy toward our 
neighbors.  We need a situation, a community, and commonness 
that goes beyond being merely a neighbor of EU members, but 
stops short of full membership..." 
 
Economic Agenda 
 
¶7. (U) The EU should strengthen the internal market and 
undertake other reforms to increase the dynamism of the 
European economy.  See Ref C for more detail on Germany's 
economic agenda. 
 
¶8. (U) Speech excerpts: "A dynamic economy is also a 
precondition for the future of the European Union...Because 
of the EU we are better off, and the complete implementation 
of the common market is therefore a key issue...We all moan 
and groan from time to time when the properties and rights we 
have become accustomed to and we believe are integral are 
touched, but I believe there is no alternative to completing 
the common market...We need a more dynamic and, therefore, 
liberalizing approach in energy, postal services, 
telecommunications, financial services...The third point that 
is important to me during our presidency is that we 
emphasize, apart from better regulation and a reduction of 
bureaucracy, the topics of research and development..." 
 
U.S.-EU Relations 
 
¶9. (SBU) Europe should continue to increase its global 
engagement, but do so in close cooperation with the U.S. and 
NATO. 
 
¶10. (U) Speech excerpts:  "My fourth point is that we will 
only be able to influence globalization if we bring our 
common influence to bear.  That means that we have to be 
strong, consistent, and creative at international 
negotiations, such as the Doha Round and Kyoto...In addition, 
it is about a common security and defense policy.  It must be 
said that this security and defense policy - this is very 
important to me - must not be directed against the 
transatlantic partnership.  Neither must it come to a 
conflicting situation with NATO. However, over the next few 
years, Europe will be increasingly in demand concerning tasks 
in foreign, security, and defense policies...The military 
component of UNIFIL requires a political engagement because 
the people of Europe will otherwise ask us what we do.  We 
must therefore, together with our American partner, be 
creative and resolve the individual conflicts with great 
commitment..." 
 
EU Constitution 
 
¶11. (U) The EU should agree on something akin to a 
constitution by 2009 that would include a provision for an EU 
Foreign Minister.  Officials at the Ministry of Foreign 
Affairs indicate that Merkel will seek to enhance the idea of 
an EU Foreign Minister by having High Representative for CFSP 
Javier Solana chair some of the troika meetings focused on EU 
relations with third countries during the German presidency. 
 
¶12. (U) Speech excerpts:  "The fifth point is that Europe 
needs a future structure in from of a (constitutional) 
treaty...  By 2009, we must have made the decision (about the 
constitution)...  However, the German (EU) presidency must 
develop the timeframe for the structure...  At the end of our 
presidency we will present a plan, a concept.  Given a number 
of upcoming elections, this will not be possible before the 
end of our presidency...This includes, above all, the 
creation of the office of a European Union foreign minister." 
TIMKEN JR