P 051726Z MAR 07
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 7313
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUCNFRG/FRG COLLECTIVE PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC PRIORITY 0063

UNCLAS SECTION 01 OF 02 BERLIN 000447 
 
SIPDIS 
 
USTR FOR MMOWREY 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EU GM
SUBJECT: MERKEL GIVES PREVIEW OF PRIORITY ISSUES FOR MARCH 
8-9 EU COUNCIL SUMMIT IN GERMAN PARLIAMENT ADDRESS 
 
 
¶1.  Summary: German Chancellor Angela Merkel, who currently 
holds the presidency of the European Council, addressed the 
German Bundestag on March 1 in a policy speech about her 
priorities for the March 8-9 EU Council Meeting in Brussels. 
Major themes are the promotion of economic growth, a 
successful completion of the Doha Round, deepening 
transatlantic economic cooperation, energy and climate 
change.  End summary. 
 
--------------------------------- 
Economic Reform / Lisbon Strategy 
--------------------------------- 
 
¶2.  Chancellor Merkel emphasized the traditional focus of the 
EU's spring summit on economic issues.  Only if the EU is 
economically successful would it be able to maintain the 
European way of life and promote it around the world.  "The 
world will not wait for Europe" in the face of increasing 
competition from other emerging regions in a globalizing 
economy, Merkel said.  Increasing competitiveness, creating 
jobs and guarding social cohesion throughout the continent 
are all equally important, interdependent aims in this 
context, she emphasized.  The intrinsic aim of the reforms is 
therefore to protect the European social model as "there can 
be no solidarity without growth".  The complete 
implementation of the EU's economic reform program under the 
Lisbon Strategy is an important step to encourage the 
continuation of the increased economic growth and job 
creation seen across the EU in 2006.  Merkel also noted the 
goal of reducing the administrative burden attributed to the 
EU's regulations by 25 percent over the next four years. 
 
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Trade - Doha Round and Transatlantic Economic Partnership 
--------------------------------------------- --------------- 
 
¶3.  Merkel emphasized that Germany would work hard for a 
successful completion of the Doha round and for continued 
trade liberalization.  A successful Doha round helps Germany, 
as the world's number one exporting country in goods, to find 
new business opportunities.  It would also help developing 
countries gain access to markets in developed countries. 
 
¶4.  Merkel stressed her desire for an intensified 
transatlantic economic partnership and explicitly referred to 
it as complementary, and not competing with Doha.  The 
priority areas for facilitating further cooperation are norms 
and industrial standards, protection of intellectual property 
rights and financial regulations.  The Chancellor expressed 
her hope that an agreement in these areas would unleash the 
energies and creativity needed to compete with emerging 
economic powers through a unified European approach.  As a 
next step, Germany planned to pursue the initiative within 
the G-8 process and at the US - EU summit at the end of April. 
 
----------------------------- 
Energy and Climate Change 
----------------------------- 
 
¶5.  Regarding energy as a key resource for economic growth, 
Merkel said the EU needs affordable energy from sources that 
are reliable and sustainable.  The EU faces the critical 
challenge in the next decade of combining ecological 
improvements with economic progress in a way that realizes 
emission reductions that are key to Germany's climate 
protection strategy.  Merkel stressed both the importance of 
climate protection and the task it represents, pointing out 
that Kyoto requires emission reductions of 8% below 1990 
levels within 20 years, while the EU is about to adopt the 
goal of an additional 12% reduction between 2012 and 2020. 
She commended the EU Commission's proposal to reduce 
emissions below Kyoto targets and pledged German support. On 
the controversial subject of car emissions she pointed out 
that the government supports the emission restrictions for 
cars but specified this must be accomplished through a 
reduction of "average-fleet emissions", not only from 
emissions restrictions on bigger cars.  All manufacturers 
would have to undertake such efforts. 
 
¶6.  Merkel highlighted carbon capture and sequestration 
technology (CCS) as an example of both the technological 
potential and challenge in the years ahead.  She lauded 
Swedish energy company Vattenfall for building Germany's 
first coal fired test plant employing CCS technology in 
Brandenburg, but cautioned that there remained a number of 
technical problems that needed to be solved in order to make 
the technology market viable by 2020.  In addition, Merkel 
praised the role of the EU in promoting wind energy and 
called it a huge success in the development of renewable 
energy sources. Germany's global market share of 60% in this 
technology will send a signal to emerging economic powers to 
also invest in this form of renewable energy.  Merkel said 
the adoption of an Energy Action Plan by the EU Council would 
position the EU well for the upcoming energy talks at the 
US-EU summit and the EU-Russia meeting. 
KOENIG