VZCZCXRO0840
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPG #1151/01 2891554
ZNR UUUUU ZZH
R 161554Z OCT 07
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC 9716
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 PRAGUE 001151 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EUR/NCE FOR ALEX TRATENSEK, INR/EU FOR ED KEETON, EUR/ERA 
FOR NATHANIEL DEAN 
 
E.O. 12958: N/A 
TAGS: PREL PGOV EUN EZ ECON
SUBJECT: C-RE7-01700: CZECH EU PRESIDENCY PRIORITIES - 
"EUROPE WITHOUT BARRIERS" 
 
REF: A. PRAGUE 1089 
     ¶B. PRAGUE 922 
     ¶C. PRAGUE 103 
 
¶1. (U) During a meeting with Embassy Officials, Michal 
Sedlacek of the Office of the Czech Deputy Prime Minister for 
EU Affairs, outlined a range of issues related to the Czech 
EU Presidency, which commences January 1, 2009.  Of key 
interest are the five priorities for the Czechs - 
Competitiveness of the EU, Energy Security and 
Sustainability, Reform of the EU Budget and Agricultural 
Policy, Foreign Policy (Transatlantic Relations, the Balkans, 
and the Eastern Neighborhood), and Third Pillar issues 
(immigration and the post-Hague Program) - and what is not on 
the agenda - Russia, nor Promotion of Human Rights and 
Democracy. 
 
---------- 
EU Competitiveness, Budget Reform and Ag Policy 
---------- 
 
¶2.  (SBU) As EU competitiveness is the top priority for the 
Czechs, Sedlacek stated that in this area the Czechs will 
focus on the free movement of capital and labor, in keeping 
with the overall theme for the Czech EU Presidency "Europe 
Without Barriers."  They also plan to press for re-evaluation 
of EU funding allocations.  As one example, Sedlacek noted 
that the Czechs would like to see a greater proportion of EU 
funds allocated for educational purposes.  This also folds in 
with the Czech priority of "Reform of the EU Budget and 
Agricultural Policy."  Although EU Agricultural Policy is up 
for EU discussion prior to Czech assumption of the 
Presidency, Sedlacek acknowledged that the French are likely 
to face the same credibility problems that the British 
encountered during the last debate on Agricultural Policy. 
The Czechs fully anticipate that this issue will remain 
unresolved in 2008 and fall to their Presidency in 2009. 
Comment: We can expect that the new Czech Ambassador to the 
EU, Milena Vicenova, as the former Czech Minister of 
Agriculture, will be actively engaged in Brussels in this 
area (reftel A).  End Comment. 
 
---------- 
Balkans, Eastern Neighborhood, Transatlantic Relations 
---------- 
 
¶3. (SBU) In the area of foreign policy, the Czechs have three 
priorities - The Balkans, the Eastern Neighborhood and 
Transatlantic Relations.  Sedlacek acknowledged the 
importance of getting things right now on Kosovo as he fully 
expects the Kosovars to declare independence in December, if 
nothing comes of the ongoing negotiations.  The Czechs 
recognize the impending train wreck of a Kosovar declaration 
without a united EU position on how to respond and worry that 
this lack of EU consensus is allowing Russia, by default, to 
manipulate the situation in unhelpful ways.  The GOCR thus 
believes the situation of the entire region will require 
attention for quite some time to come.  The key Eastern 
Neighborhood countries for the Czechs are Belarus (where the 
Czechs are notably engaged promoting the concepts of 
democracy and human rights), Ukraine and Moldova.  Other than 
"enhancing" transatlantic relations, the Czechs lack 
specifics at this moment as to what and how they wish to work 
with us in this area.  Sedlacek noted, however, that the 
Czechs expect the French to take an active, and overall 
constructive approach to transatlantic relations. 
 
---------- 
Third Pillar - A "Free and Secure" Europe 
---------- 
 
¶4. (SBU) The Czechs seek to advance the idea of a "Free and 
Secure" Europe and immigration will be a major topic of 
discussion.  Sedlacek's reference to the post-Hague program, 
indicates Czech interest in addressing database 
sharing/privacy rights issues. 
 
¶5. (SBU) Interestingly, it appears that the Czechs have some 
reservations about Third Pillar EU competencies.  Sedlacek 
stated that the Czechs and Poles have both explored Article 
10, which allows the European Commission to sue within the 
European Court of Law to force a country to implement EU 
legislation, if that country does not act in a sufficiently 
expeditious manner.  Both countries apparently have serious 
reservations about this article and would like to have an opt 
out, along the lines of what Britain is allowed.  How, or 
even whether, they will pursue this interest was not 
clarified. 
 
PRAGUE 00001151  002 OF 002 
 
 
 
---------- 
Reform Treaty - To Steadily Advance 
---------- 
 
¶6. (U) Sedlacek indicated that the "Reform Treaty" was 
initially the Czech government's sixth priority, but the 
Czech Government dropped this as an issue since they do not 
expect changes to the June draft.  They predict that things 
will proceed on course at the Intergovernmental Conference of 
the Heads of State or Government October 18 in Lisbon, 
followed by a ceremonial treaty signing in December.  The 
only controversy, in Sedlacek's mind, is how this will be 
ratified by EU member states - whether by public referenda or 
by member state parliaments - and when it will be implemented. 
 
¶7. (U) The Czechs have spoken with the French (who hold the 
EU Presidency from June 2008 and who are eager to proceed 
with implementation of the treaty with all due haste), to 
indicate that the Czechs think given the upcoming EU 
Parliamentary Elections anticipated in June 2009 and the 
formation of a new EU Commission soon thereafter, that 
implementation of the treaty should not commence before this 
point in time.  Comment: The Czechs also desire this date 
because they wish to have their Prime Minister preside over 
the European Council during their first-ever EU Presidency, 
rather than a President selected by EU members, as foreseen 
in the Reform Treaty.  End Comment. 
 
---------- 
Notably Unstated - Human Rights and Russia 
---------- 
 
¶8. (SBU) While the Czechs are fierce advocates for Human 
Rights and Democracy issues, these issues do not figure in 
their stated top priorities, except perhaps tangentially in 
the foreign policy area.  For the Czechs, advancing relations 
with the EU's Eastern Neighborhood, will very likely involve 
a discussion of Democracy and Human Rights issues in Belarus. 
 Also of interest is the fact that the Czechs have not 
prioritized relations with Russia as a key issue.  When 
queried about this, Sedlacek referenced the GOCR priority of 
"Energy Security and Sustainability." He did not, however, go 
into further depth on how they plan to address Energy 
Security, and even so, this topic involves only one of 
numerous aspects of the EU's relationship with Russia. 
 
---------- 
Comment - The Right Moves 
---------- 
 
¶9. (SBU) Preparations for the Czech EU Presidency, while 
nascent and still 15 months off, are commencing on the right 
foot.  The GOCR has identified skilled and experienced 
diplomats here in Prague within the Deputy Prime Minister's 
office and the MFA to lead the preparations.  These offices 
are currently small, but will grow since additional staff 
have been allocated.  As well, the Czechs have begun meeting 
with the French and Swedes to coordinate on EU Presidency 
matters.  At this point, the Czechs have deliberated defined 
their agenda broadly since they fully anticipate that world 
events over the next year, particularly in the foreign policy 
sphere, as well as key EU events (EU Parliament elections, EU 
Commission selection, appointment of a new High Rep for CFSP, 
etc.) could force the Czechs to reshape their agenda. 
Graber