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UNCLAS BERLIN 000125 
 
 
STATE FOR INR/R/MR, EUR/PAPD, EUR/PPA, EUR/AGS, INR/EUC, INR/P, 
SECDEF FOR USDP/ISA/DSAA, DIA FOR DC-4A 
 
VIENNA FOR CSBM, CSCE, PAA 
 
"PERISHABLE INFORMATION -- DO NOT SERVICE" 
 
E.0. 12958: N/A 
TAGS: OPRC KMDR KPAO GM IS RS IZ TU XF
SUBJECT: MEDIA REACTION: IRAQ, DAVOS, TURKEY-ISRAEL, FINANCE, 
RUSSIA 
 
¶1.   Lead Stories Summary 
¶2.   Iraqi Elections 
¶3.   Davos Global Economic Forum 
¶4.   Turkish PM Erdogan Clashes With Israel 
¶5.   Financial Markets 
¶6.   Protests in Russia 
 
 
¶1.   Lead Stories Summary 
 
Editorials focused on the pay hikes for Deutsche Bahn employees, the 
most recent decisions by the Pope, and the debate over the 
nationalization of banks.  Lead stories in the papers deal with the 
failure to approve a new set of environmental rules and on the Pope. 
 ZDF-TV's early evening newscast Heute and ARD-TV's early evening 
newscast Tagesschau opened with stories on the wage deal between 
Deutsche Bahn and its employees. 
 
¶2.   Iraqi Elections 
 
Many German media carried mainly factual reports on the Iraqi 
provincial elections, highlighting that "the provincial elections in 
Iraq remain peaceful" (Berliner Zeitung headline).  "Most peaceful 
election since Saddam's ousting (Sueddeutsche headline), and "A 
little peace - The regional elections in Iraq remained unusually 
calm," (Tagesspiegel headline). 
 
An editorial in Die Welt headlined "Peaceful elections -- a great 
step forward," and added: "Attacks and assassinations were expected 
during the first elections since 2005.  The relief is now all the 
greater because there were hardly any incidents.  Many Iraqis even 
say it was the most peaceful day since the invasion of the U.S.-led 
forces in March 2003.  The Iraqi security forces have done the job 
well; they are the first winners of the election....  The next 
democratic test will come at the end of the year when national 
elections are held.  If they are peaceful, we can assume that Iraqis 
will have understood democracy as an opportunity to participate." 
 
Under the headline "Iraqis give democracy a try," Frankfurter 
Allgemeine Sonntagszeitung carried a photo showing a queue of female 
Iraqi voters.  The caption said: "Broadly peaceful: 15 million Iraqi 
voters were called to the ballots under strict security precautions 
on Saturday to elect 14 out of 18 provisional parliaments.  No major 
incidents were reported by the closure of the polling station.  It 
was the first election since 2005 when the country experienced civil 
war-like clashes. 
 
Berliner Zeitung concluded:  "The optimists, who make the case for a 
quick withdrawal of the troops based on the signs of an improved 
situation, were apparently right.  U.S. media and voices in Iraq see 
the Election Day as successful evidence that the U.S. army is no 
longer needed.  The new president in the White House is glad about 
it because he can now call troops home...  Many Iraqis, who desire 
an end of the occupation, are also happy about this." 
 
Saturday's Frankfurter Allgemeine wrote under the headline "Iraqi 
Emancipation" in a think piece:  "The broad spectrum of participants 
will probably limit the influence of those who currently hold the 
power as well as the influence religion has on politics.  In the 
election campaign, economic needs and demands played a greater role 
than religious rhetoric.  Parties that call for more federalism and 
who thereby want to weaken the central government seem to be losing 
ground....  Four years after badly managed administrations and 
serious corruption, politicians had to account for their policies in 
the election campaign....  A real political representation of Iraqis 
is emerging out of the political construction created after Saddam's 
fall.  Institutions that are accepted by Iraqis have now been 
created." 
 
¶3.   Davos Global Economic Forum 
 
Frankfurter Allgemeine Zeitung argued: "Chancellor Merkel's proposal 
for a 'Global Economic Council' was not a flash in a pan.  She has 
frequently presented it, even though she is still unclear about the 
details...but an analogy with the UN Security Council makes us 
shudder.  The UN has bodies where members can vote on economic and 
financial policies.  But these policies do not function, and this 
problem cannot be resolved by founding a new working group.  It 
would be better for Merkel to rethink her plan." 
 
According to Sueddeutsche Zeitung, "a change of trends was not 
visible in Davos.  Instead we got many indications that politicians, 
managers, and scientists are not yet ready for the new times.  In 
Davos, we could observe a frightening herd instinct of the elites. 
A year ago, everything was alright, but now there has been a 
complete turnaround.  Everyone was singing the blues!  But in this 
context, they forgot to seek solutions, offer ways out, or to agree 
on concepts that lead us out of the crisis.  Davos demonstrated that 
the global elite is still scratching the surface.  One cannot win 
the future when leaving it to the movers of the moment, who have no 
plan that goes beyond the coming week.   In the end, there must be a 
struggle to find the right course, but a real wrestling is not 
taking place in Davos.  Insofar the meeting was a missed 
opportunity." 
 
Regional daily Coburger Tageblatt judged: "This meeting in Davos was 
worthwhile only for one reason.  It made clear the great 
helplessness in view of the collapsing markets.  And it is remains 
painful to listen to this mountain of meaningless words which 
politicians, managers, theoreticians and pragmatists left in Davos. 
Davos 2009 produced the sobering insight that no one in this world 
knows a solution for the problems that the world did not know before 
this fall 2008.  Yesterday's instruments are no longer valid and no 
one has any tools for tomorrow in his or her toolbox." 
 
¶4.   Turkish PM Erdogan Clashes With Irael 
 
FAZ commented: "In the run-up to the elections, Erdogan showed his 
voters that Turkey, an old friend of Israel, disapproves of the Gaza 
War.  Applause at home was certain.  He wanted to send a message to 
Israel that Israel owes him at least honesty for his efforts to 
mediate relations with Syria.  The indirect talks between Israel and 
Syrian were apparently advanced; now they have broken down.... Its 
frustrating for Erdogan, whose reputation as a broker in the Mideast 
and as a bridge between the Islamic world and the West has been 
damaged." 
 
Sueddeutsche editorialized: "It seemed as if Erdogan enjoyed the 
success at home.  But the triumph was bought cheaply and could come 
costly for him and his country....  The statesman Erdogan responded 
like a dilettante and damaged his course; the Turkish government 
pursues two interlocked foreign policy goals:  The country wants to 
solidify its role as regional power and wants to become an EU 
member....  For the time being, Erdogan greatly disqualified himself 
as a mediator." 
 
Tagesspiegel stated: "Peres signaled on Friday that he will stick to 
Turkey as a partner, despite the incidents in Davos.  The Israeli 
Ambassador to Ankara predicted a return to normalcy soon.  Erdogan 
should also make an effort to pour oil on troubled waters, 
regardless of the elections.  His speech on Friday, in which he 
clearly distanced himself from the anti-Semitism and anti-Israeli 
outbursts of his supporters, was a first step. Others must follow." 
 
Under the headline "Erdogan Plays with Fire" Frankfurter Rundschau 
opined: "The fact that Erdogan is not a diplomat and easily goes 
through the roof was clear before.  He demonstrated this again in 
Davos.  The slogans of his supporters, who welcomed him as the 
conqueror of Davos, are even more disturbing....  It seems like the 
conservative Muslim wanted to appeal especially to his supporters 
with his attacks against Israel.  This is a dangerous game.  The 
Turkish prime minister is recklessly fueling anti-Semitic 
resentments among his people." 
 
Berliner Zeitung had this to say: "It was to be feared that the 
cease-fire for Gaza would not be very useful.  This conflict between 
Israel and Hamas can be resolved only if both sides approve a true 
cease-fire.  At least there are positive signals.  The Egyptian 
negotiators are working hard to find an acceptable agreement.  Hamas 
seems to accept that Fatah units take over border controls.  For 
Israel, something else is important: the political will in Cairo to 
contain weapons smuggling to Gaza.  The weakening of Hamas offers 
the chance to find new rules of the game in the Middle East.  But it 
is paradoxical that this can function only if Hamas remains strong 
enough to assert itself against global Jihadists." 
 
¶5.   Financial Markets 
 
Under the headline: "Cold Chill Of Horror," Sueddeutsche argued: 
"Only a few days ago, the world cheered at Barack Obama's election 
but now a cold chill of horror is wrapping around the managers and 
politicians outside the U.S.  If Obama and his Democrats give in to 
populist tendencies and if the planned 'Buy American' bill  becomes 
reality, the world will be on the verge of a trade war." 
 
Frankfurter Allgemeine Zeitung dealt with Treasury Secretary Timothy 
Geithner's accusations that China manipulated the Yuan and argued: 
"This conflict about the Yuan could provoke a new trade conflict. 
But the world currently needs nothing less than new protectionism. 
A trade conflict between the largest and the third largest economies 
would mean pouring even more oil into the fire of the global 
economy.  But even critics of the Chinese government must admit that 
the Chinese government has rarely before disappointed the 
international community with its economic decisions.  Instead of 
stabilizing economic growth through erratic ups and downs in the 
exchange rates, the Chinese government is increasingly likely to 
directly stimulate the domestic economy.  The focal point should be 
considerably higher spending on education and health care.  At the 
same time, this would reduce China's dependency on growth rates that 
it will be unable to maintain and it is also likely to reduce the 
savings quota...." 
 
Frankfurter Rundschau deals with the role of the state in view of 
the banks' losses and noted: "The question of nationalization and 
expropriation is shaking the pillars of the state.  But 
nevertheless, this is no longer a question of ideology.  The real 
revolutionaries are sitting today in the headquarters of the 
Bundesbank, the oversight agencies, in Wall Street and in the 
banking towers in Frankfurt.  They do not want to crush but to save 
the system.  They know that the system cannot heal itself.  Only one 
institution can help.  This is the state, for the belief in the 
unlimited opportunities of the markets no longer helps." 
 
Die Welt judged: "We are rubbing our eyes in view of the speed with 
which the principles and rules are turned upside down as a 
consequence of the crisis in the financial markets.   But what is 
really flabbergasting is the apparent lack of alternatives. At issue 
are no longer state interventions themselves but only the amount of 
money that is being used on a scale that does not know any limits. 
The consequences would be unforeseeable.  Politicians are now faced 
with a dilemma of appeasing the voters or keeping the economy 
running.  In Britain, Prime Minister Brown is already under pressure 
from protests against the use of foreign workers.  This ?only be the 
beginning.  But the well-being of the state urgently requires 
international agreements on how to limit state intervention. But as 
it looks right now, the national states do not seem to have the 
force to do so." 
 
In the view of Handelsblatt, "the banks would be bankrupt - at least 
according to today's accounting standards - without the state, 
without the citizens.  Chancellor Merkel's guarantee of all savings 
deposits in October revealed the degree of the misery.  It is likely 
that the horror scenario of a run on banks could be prevented with 
this courageous step." 
 
Mass-circulation, right-of-center tabloid Bild-Zeitung of Hamburg 
opined: "A bankruptcy of the Hypo Real Estate bank (HRE) would have 
massive consequences for commercial banks, savings banks, insurance 
companies, but also for ordinary people who invested their money in 
covered bonds.  When looking at HRE, the state is faced with 
Hobson's choice - the choice between pestilence (insolvency) and 
cholera (nationalization).  There is one comfort: It is possible to 
survive cholera but not pestilence." 
 
¶6.   Protests in Russia 
 
According to Sueddeutsche Zeitung, "Russia's leadership is worried 
about possible unrest in the population, for the global economic 
crisis is hitting the country hard.  But the government need not be 
worried too much.  There was only a minor response to the call for 
nationwide protests.  The rating for the leadership duo that must 
lead Russia through the gravest economic storm in ten years is still 
stable.  But if Russia now wants to restructure its economy, it will 
have to open up to other international companies more than in the 
past.  Thus far, the Russian opposition is unable to profit from 
this dilemma.  The leadership in the Kremlin has now weathered the 
first protests.  But stronger unrest will follow if the economic 
crisis escalates.  Early this year, the downswing will hit the labor 
market, but even then protests will not shake their power.  But 
Putin and Medvedev's uneasiness will increase and with it the demand 
for unbridled control." 
 
Frankfurter Allgemeine wrote that Putin's followers said in Moscow 
"that the West is to blame for the misery, because it is stirring up 
the Russians against each other to weaken the country.  That is why 
Medvedev and Putin's course must be continued against the opposition 
and its international supporters. What was it again that Putin 
called for in Davos last week?  New international cooperation?  At 
home he is striking a different tone." 
 
 
KOENIG