VZCZCXRO3479
RR RUEHAG RUEHROV RUEHSR
DE RUEHBS #0030 0091640
ZNY CCCCC ZZH
R 091640Z JAN 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHMU/AMEMBASSY MANAGUA

C O N F I D E N T I A L BRUSSELS 000030 
 
SIPDIS 
 
STATE FOR WHA/CEN ALBERT KRAAIMOORE 
 
E.O. 12958: DECL: 01/09/2019 
TAGS: EAID PGOV PREL NU EUN
SUBJECT: EUROPEAN COMMISSION SUSPENDS AID TO NICARAGUAN 
GOVERNMENT 
 
REF: SECSTATE 132044 
 
Classified By: Deputy PolCouns Mary Curtin for reasons 1.4 (b) and (d). 
 
 ¶1.  (C)  On January 9, PolOff delivered reftel points to 
Petros Mavromichalis, head of the Mexico and Central America 
unit in the European Commission's Directorate General for 
External Relations.  Mavromichalis echoed U.S. concerns about 
the Government of Nicaragua's backsliding on democracy.  When 
the EU dispatched observers to the last Nicaraguan 
presidential elections, the observers noted that those 
elections were generally free and fair.  However, the GON did 
not take the EU's advice on implementing further election 
reforms at that time, and has since shown an increasing 
willingness to crack down on the political opposition and 
civil society.  The fraudulent municipal elections in 
November 2008 were the latest example of Nicaragua's 
backsliding.  The Commissioner for External Relations, Benita 
Ferrero-Waldner has twice written to the Nicaraguan 
Government to express her concerns.  In the wake of the 
November 2008 municipal elections, Ferrero-Waldner informed 
the Nicaraguan Minister of Foreign Affairs that the 
Commission would suspend its budgetary support to the GON as 
of January 1, 2009.  Mavromichalis estimated that the 
suspended funds totaled about 60 million euros, though he 
admitted that this figure is not exact.  The Commission has 
made clear that the suspension of aid is connected directly 
to the fraudulent elections, though the Nicaraguan reaction 
reportedly was dismissive of the Commission's action.  The 
Commission is considering reallocating the funds to support 
local programming for the Nicaraguan people, programs for the 
Central America region, or aid to civil society through NGOs, 
although no decisions have been made. 
.