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O 211105Z MAY 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7425
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UNCLAS SECTION 01 OF 03 PARIS 002065 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR G, EUR, OES, EEB, INR 
WHITE HOUSE FOR CEQ AND OSTP 
DOE FOR OFFICE OF THE SECRETARY; INTERNATIONAL 
USDOC FOR NOAA, OFFICE OF THE ADMINISTRATOR 
TRANSPORTATION FOR OFFICE OF THE SECRETARY 
EPA FOR OFFICE OF THE ADMINISTRATOR, INTERNATIONAL 
EMBASSIES FOR ESTH 
 
E.O. 12958:  N/A 
TAGS: SENV ENRG TPHY PINR EAIR FR
SUBJECT: FRANCE'S NEW, GREEN, SUPER MINISTRY TO BE HEADED BY FORMER 
PM JUPPE 
 
REF: A) PARIS 2027; B) PARIS 1871 
 
PARIS 00002065  001.2 OF 003 
 
 
¶1.  (SBU) Summary. Former Prime Minister Alain Juppe has been tapped 
to become the Minister of State for a new, super Ministry for 
Ecology, Sustainable Development, and Sustainable Planning in the 
May 17 government named by President Sarkozy.  Juppe will rank 
third, after President Sarkozy and new Prime Minister Fillon, in the 
GOF.  In his election bid, Nicolas Sarkozy had announced the 
creation of a super ministry for sustainable development and he has 
done so. 
 
¶2.  (SBU) During the Presidential campaign, Sarkozy called for a new 
environmental tax system and had supported the idea of a carbon tax 
on imports in the fight against greenhouse gas emissions.  In his 
May 6 acceptance speech, while providing assurances regarding 
Franco-American cooperation, President Sarkozy urged the U.S. "to 
take the lead in the fight (against climate change."  Juppe's new 
ministry, which will also be responsible for overseeing France's 
energy sector, will likely be a major player in future U.S.-France 
discussions on global climate change.  Juppe's strong institutional 
and international experience as a former prime and foreign affairs 
minister will be needed to head this "audacious" ministry already 
being described in the French media as an "institutional mammoth." 
End summary. 
 
--------------------------- 
Environmental Big Bang... 
--------------------------- 
 
¶3. (SBU) Since its creation in 1971, the Environment Ministry has 
been a marginal player.  The establishment of a ministry 
encompassing sustainable development, ecology, energy, 
transportation, and regional planning constitutes a huge change in 
the governmental system.  During the presidential campaign, Nicolas 
Sarkozy had signed the 'Ecological Pact' advanced by environmental 
activist Nicholas Hulot.  The concept of an environment ministry 
with real clout over transportation, water and energy was key to the 
Ecological Pact.  (Note: Nicolas Hulot, a leading French green 
campaigner and well-known presenter of a popular TV nature program, 
managed to force environmental issues higher up the agenda in the 
presidential campaign by proposing the Ecological Pact to all 
presidential contenders.  Opinion polls claimed he would win up to 
10 percent of the vote were he to pursue a candidacy for president. 
In the event, he decided not to run and instead to urge the other 
candidates to subscribe to his environmental agenda. End note.) 
 
¶4.  (SBU) Sarkozy's decision to establish the new environment 
ministry and Juppe's high profile appointment also reflect the 
French electorate's interest in climate change and the new GOF 
commitment to it.  Despite the meager results of the Green Party in 
the first round of the presidential elections, the environment has 
become an increasingly important political issue in France and the 
French electorate is constantly reminded of the dangers of an 
out-of-control climate system.  Certainly Sarkozy's reference to 
climate change and his claim that the United States could do more in 
this area, see ref B, found resonance with the French public.  With 
energy, transportation, ecology and sustainable development sectors 
under his charge, Juppe will command a massive budget in the tens of 
billions of euros range, a huge ministry by French standards. 
 
--------------------------------- 
A seasoned politician at the helm 
--------------------------------- 
 
¶5.  (SBU) As the sole 'Minister of State' in the French government 
Juppe will rank number three in the government following President 
Sarkozy and Prime Minister Francois Fillon.  Dominique Bussereau, 
former Agriculture Minister in the previous government, has been 
appointed Secretary of State for Transportation under Juppe's 
supervision. Juppe, 61, began his government career as a finance 
inspector in 1972 following graduation from the prestigious 
Institute of Political Studies and the National School of 
Administration (ENA). Following a two-year stint at the Ministry of 
Cooperation, he went to work for the newly elected mayor of Paris, 
 
PARIS 00002065  002.2 OF 003 
 
 
Jacques Chirac, under whom he held key financial and budgetary 
posts.  Juppe's ministerial level resume includes a stint as Junior 
Minister for the Budget in the government of Jacques Chirac from 
1986-88.  Juppe served as Foreign Minister during the Balladur 
government from 1993-95, and was then PM during 1995-97.  Early in 
his tenure, he proposed several social security and other reforms 
that led to a series of crippling strikes by public sector 
employees, eventually leading to reform withdrawals.  Juppe also 
served as president of two political parties.  He was mayor of 
Bordeaux from 1995-2004 and a deputy in the National Assembly from 
1997-2004.  He again resumed the mayoralty of Bordeaux in recent 
months. 
 
¶6.  (SBU) Juppe's appointment to a senior government post represents 
a near-miraculous political comeback for the man once seen as 
Chirac's inevitable successor, but who fell from grace following his 
conviction in an illegal political party funding scheme in 2004 
linked to Chirac's previous mayoralty.  (This forced him to resign 
from both the National Assembly and as mayor of Bordeaux.)  In 2005, 
Juppe taught a seminar on globalization at Quebec's National School 
of Administration.  During his stay in North America, he became 
increasingly interested in environmental advocacy.  In fall 2006, he 
actively prepared for the Conference for Global Ecological 
Governance held in Paris in February 2007.  A personal initiative of 
President Chirac, the conference aimed to mobilize ministers, 
scientists, company heads, NGO leaders, and public figures from 
sixty countries to create a United Nations Environment Organization 
(UNEO) to strengthen international environmental governance. 
 
 
------------------------------ 
Sensitive priorities ahead... 
------------------------------ 
 
¶7.  (SBU) During the presidential campaign, Sarkozy's environmental 
policy statements spoke of the need for pragmatism and results.  He 
made the ambitious commitment to conduct during the five year 
presidential mandate, "the necessary actions to solve France's main 
environmental problems within one generation, and two generations 
for climate change."  In his inaugural address on May 6, he also 
pledged that action on global warming would be a priority of 
France's diplomatic action in the world. 
 
------------------------- 
New environmental tax... 
------------------------- 
 
¶8. (SBU) 'Ecofiscality' reforms are to be at the center of the 
President Sarkozy's environmental vision. He plans to double the 
toll of environmental taxes, while lowering labor taxes 
proportionally.  Measures may include a reduced VAT for 
environmentally friendly products and services and the 
implementation of energy saving measures in buildings; the creation 
of tax incentives for companies investing in promoting renewable 
energy technologies (R&D efforts, training, development of "clean" 
products); and increased tariff rates for water, electricity, and 
waste collection to encourage virtuous behavior among French 
households and enterprises. In the key transportation sector, 
measures in store may include a complete tax exemption on biofuels 
and the granting of free parking in urban areas for green cars.  The 
new GOF policy will encourage greater train and sea freight vs. road 
freight.  Further, a truck fee is to be introduced based on actual 
GHG emissions of trucks traveling in France, including foreign 
trucks.  The estimated fiscal gain - 500 million to 1 billion euros 
- would be devoted to improving alternative transportation means. 
Sarkozy is also sympathetic to a carbon tax on imports from 
countries that don't adhere to binding constraints on CO2 emissions, 
an idea proposed by Prime Minister de Villepin in late 2006. (See 
ref B, "President Sarkozy and the Climate Change Challenge.") 
 
--------------------------------- 
A continued robust nuclear policy 
--------------------------------- 
 
 
PARIS 00002065  003.2 OF 003 
 
 
¶9.  (SBU) Underscoring the environmental benefits of nuclear power, 
Sarkozy has promised to encourage the modernization of nuclear 
energy and know-how, while optimizing security and nuclear waste 
production. The new president supports the third generation European 
Pressurized Reaction (first EPR currently under construction in 
Finland and soon to be constructed in Normandy). He also supports 
research programs concerning fourth generation reactors while 
calling for a significant increase of renewable energy in France's 
energy mix. 
 
¶10. (SBU) Comment:  President Sarkozy is being true to his campaign 
pledges in creating this new super environmental ministry.  Some 
analysts point to a gain in coherence with the incorporation of 
regional planning, energy and transport issues, and are satisfied 
with the appointment of a "heavy weight" to run this new super 
ministry.  Others question the recent "greening" of the new 
"vice-prime minister" and wonder how such a huge ministry will ever 
work.  But without question, the new governmental structure will 
provide Sarkozy and Juppe with much greater control over 
environmental issues than heretofore.  End Comment. 
 
STAPLETON