VZCZCXYZ0004
RR RUEHWEB

DE RUEHHE #1088 2991122
ZNR UUUUU ZZH
R 261122Z OCT 06
FM AMEMBASSY HELSINKI
TO SECSTATE WASHDC 2653

UNCLAS HELSINKI 001088 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG ETRD EUN FI MOPS PGOV PHUM PREL SU
SUBJECT: ENERGY, IMMIGRATION, AND INNOVATION: EU HEADS OF 
STATE OR GOVERNMENT MEET IN LAHTI 
 
 
¶1. (U) The EU Heads of State or Government on 20 October met 
in Lahti, Finland to discuss external energy relations, 
immigration, and technological innovation.  In press 
statements throughout the day, the Finnish EU presidency 
sought to portray the EU as united on these difficult issues, 
but public comments by other attending officials cast doubt 
on the Finnish assessments. 
 
EXTERNAL ENERGY RELATIONS: DEALING WITH RUSSIA 
--------------------------------------------- - 
¶2. (U) The issue of the day, despite an agenda full of other 
items, was energy security probably due to the impending 
dinner with Russian President Putin (septel).  Finnish PM 
Vanhanen, speaking for the Presidency, announced that it was 
time for the EU to negotiate a legally-binding document to 
spell out EU-Russia energy relations based in the principles 
of market rules, non-discriminatory access, reciprocity, and 
transparency.  The EU, at the same time, must also begin 
energy conservation initiatives to reduce consumption in the 
near future.  Commission President Barroso, both in the 
formal press conference and in an informal session afterward, 
stressed that Russia is not the long-term energy answer for 
the EU and that home-grown and renewable sources must be 
developed hand-in-hand with better conservation. 
 
¶3. (U) The first fissures in EU unity appeared in the energy 
discussion.  While Vanhanen and Solana noted the links 
between energy and foreign policy, Barroso and French PM 
Chirac separately stated that the EU's energy relationship 
with Russia had become too politicized.  Chirac went as far 
as saying that the EU does not mix business and values. 
Vanhanen also mentioned the possibility of a single price for 
EU energy while Barroso and others stressed the need for 
market principles to be applied.  While it is clear that the 
leaders endorsed the broad outline of an agreement suggested 
by the Finnish presidency, it is also clear they are still 
far apart on the necessary details of that arrangement. 
 
AFRICA AND MIGRATION 
-------------------- 
¶4. (U) EU immigration policy was also discussed over the 
working lunch and subsequent meetings.  Vanhanen stated that 
immigration is not just a southern European problem, but an 
EU wide issue.  He continued that the solution to immigration 
problems lay in a cooperative relationship with African 
nations to address the roots of illegal immigration.  In 
separate statements, Chirac went further, opining that 
immigration anywhere in the Schengen countries is an issue 
for every other Schengen country.  He called on the EU to 
develop a comprehensive policy for African development, 
noting that the African continent's population is growing but 
its industrial and agricultural capacity is not keeping pace, 
making immigration (whether legal or illegal) more 
attractive.  British Prime Minister Tony Blair did give a 
presentation on the situation in Sudan, but it was not 
extensively discussed in press conferences or with local 
interlocutors. 
 
INNOVATION: ADDRESSING EDUCATION AND BUSINESS 
--------------------------------------------- 
¶5. (U) The EU Presidency had earlier announced plans for a 
European Institute of Technology, a network of programs to 
stimulate scientific research and improve standards for 
research and development in an effort to close the gap with 
the US.  In addition, Vanhanen stressed the need to adopt a 
comprehensive IPR strategy and harmonized patent applications 
across the EU; however, the patent plan in particular was 
announced and agreed to in 1997 with little forward action 
since.  Barroso echoed the Presidency's concerns, noting that 
the EU is losing innovative possibilities to the US because 
of the time and cost necessary to apply for EU patents. 
WARE