VZCZCXRO6526
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSQ #0453/01 1961541
ZNR UUUUU ZZH
P 141541Z JUL 08
FM AMEMBASSY SKOPJE
TO RUEHC/SECSTATE WASHDC PRIORITY 7518
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE 0363
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUESEN/SKOPJE BETA
RUEHSQ/USDAO SKOPJE MK
RUEHNO/USMISSION USNATO 3763
RUEHVEN/USMISSION USOSCE 2104
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL

UNCLAS SECTION 01 OF 02 SKOPJE 000453 
 
SIPDIS 
 
STATE FOR EUR/SCE 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PINR MK
SUBJECT: MACEDONIA: PM GRUEVSKI SUBMITS NEW GOVERNMENT 
PROGRAM AND LINEUP 
 
SUMMARY 
---------- 
 
¶1. (SBU) PM Gruevski's new government program, submitted to 
parliament on July 12, is heavy on economic goals but also 
includes a commitment to Euro-Atlantic integration, resolving 
the name dispute with Greece, combating crime and corruption, 
improving inter-ethnic relations (including Framework 
Agreement implementation), and providing quality education. 
Gruevski's new cabinet lineup includes mostly old faces, with 
the interior, foreign affairs, justice and finance portfolios 
remaining unchanged.  New coalition partner DUI picks up 
several key ministries, including health, self-government, 
and labor, as well as the deputy PM for Framework Agreement 
implementation.  Gruevski will have to ensure that, in 
implementing the new governing platform, expected to be 
approved in parliament by July 26, the government does not 
neglect the political issues necessary to provide a solid 
foundation for sustained internal stability and economic 
growth.  End summary. 
 
GOVERNMENT PROGRAM: FOCUS ON ECONOMIC GROWTH... 
--------------------------------------------- -- 
 
¶2. (U) PM Gruevski submitted the new governing coalition 
(VMRO-DUI-PEI) program for 2008-2012, and the list of 
proposed cabinet ministers, to the parliament on July 12. 
Like the previous government platform, the five key strategic 
goals of the new program focus heavily on enhancing economic 
growth and development.  Individual goals include 6% annual 
GDP growth, an increase in domestic and foreign investment, 
lower unemployment, improved infrastructure, and development 
of agriculture. 
 
...NATO/EU MEMBERSHIP, NAME ISSUE, CRIME & CORRUPTION, 
INTER-ETHNIC RELATIONS, EDUCATION 
----------------------------------- 
 
¶3. (U) The platform's five strategic goals include NATO and 
EU membership, as well as resolution of the name issue with 
Greece in a manner that "does not endanger national 
identity."  The program describes steps to more effectively 
combat crime and corruption, to enhance inter-ethnic 
relations (including full implementation of the 2001 Ohrid 
Framework Agreement), and to boost investment in education. 
The parliament is expected to vote on and approve (given 
Gruevski's 82-seat majority) the new coalition program and 
list of ministers not later than July 26. 
 
OTHER GOALS 
--------- 
 
¶4. (U) In addition to the program's strategic goals, the 
document includes such objectives as worldwide promotion of 
the "Macedonian language, culture and identity;" ensuring an 
independent judiciary and robust rule of law; working toward 
a healthier nation in which there is respect for family and 
traditional values; and steps to enhance the efficiency and 
transparency of central and local government.  The government 
wants wages to increase by 10% by October of this year, and 
by another 10% by October 2009.  Pensions are expected to 
increase by nearly 30%, compared to rates in effect in 
December 2007. 
 
MINISTERIAL LINEUP: MOSTLY OLD FACES... 
----------------------------------- 
 
¶5. (SBU) The "new" cabinet lineup is mostly familiar, with 
the ministers of interior, foreign affairs, justice, finance, 
agriculture, and transportation remaining unchanged.  DUI 
received the ministries of health, economy, labor and social 
affairs, local self-government, and environment, in addition 
to the deputy PM for Framework Agreement implementation (to 
be headed by DUI President Ali Ahmeti's Chief of Staff, 
Abdulakim Ademi).  The PM's Chief of Staff, Martin Protoger, 
told us July 13 that the coalition talks on the new lineup 
went smoothly, with DUI demonstrating constructive political 
flexibility. 
 
...SOME SURPRISES 
 
SKOPJE 00000453  002 OF 002 
 
 
-------------- 
 
¶6. (SBU) In a surprise move, VMRO appointed former Local 
Self-Government Minister Zoran Konjanovski as Minister of 
Defense.  Konjanovski, widely praised as an able 
administrator and competent technocrat, nevertheless will be 
hampered by his lack of English-language capability and 
dearth of military affairs experience.  According to the PM 
Chief of Staff Protoger, DUI showed no interest in MOD 
portfolios for its cadre.  Another surprise appointment was 
that of GOM Spokesman Ivica Bocevski as Deputy Minister for 
Euro-Integration.  Bocevski, a political crossover from 
opposition SDSM ranks, is a former Ron Brown scholar, chief 
of staff for the deputy PM for economic affairs, founder of 
the MFA's foreign policy journal, and a co-drafter of 
Macedonia's lustration law. 
 
COMMENT 
-------- 
 
¶7. (U) The heavy emphasis on economic issues in the platform 
is a carryover from Gruevski's first term in office, 
signaling his determination to stake his political reputation 
on an economic upturn that will slash high unemployment and 
raise living standards dramatically.  At the same time, the 
substantial wage and pension increases in the package are 
likely to add to existing inflationary pressures, 
jeopardizing the stable macroeconomic climate that has helped 
make Macedonia a more attractive business and investment 
destination.  In addition, Gruevski will have to ensure that 
the focus on economic growth does not deflect efforts to 
resolve the political issues (inter-ethnic relations, rule of 
law, working with the opposition) that can provide a solid 
foundation for sustained internal stability and economic 
growth. 
Milovanovic