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SUBJECT: MEDIA REACTION: MSC, U.S. ECONOMY, EU-RUSSIA, GERMAN ECON 
MINISTER 
 
¶1.   Lead Stories Summary 
¶2.   Munich Security Conference 
¶3.   U.S. Economic Package 
¶4.   Russia-EU Meeting 
¶5.   German Economic Minister Resigns 
 
 
¶1.   Lead Stories Summary 
 
Today's German media focused Economic Minister Glos' resignation and 
the implications for the coalition. Editorials focused on the Munich 
Security Conference, Economic Minster Glos' resignation and 
Chancellor Merkel's telephone conversation with the Pope. 
 
¶2.   Munich Security Conference 
 
Response to VP Biden 
 
Under the headline "U.S. Intends to Cultivate Europe but Will Ask 
for More," Welt am Sonntag reported that "A new America is looking 
for a new relationship with the world - that was essentially the 
tone of Vice President Biden's speech at the MSC.  But the deputy of 
U.S President Barack Obama also announced that the U.S. would in the 
future call on allies to do more...  Still, expectations of NATO 
partners remained vague." 
 
Deutschlandfunk remarked: "A new tone, a new style, new manners - 
these are the resolutions many people have talked about before. 
Biden has now personally delivered this message to Munich....  There 
is a good chance for new beginning of the transatlantic policy.  But 
it is too early to be jubilant.  We must not mistake chances for 
results....  Such praise however might encourage the U.S. to 
continue on the right path...  The Munich Security Conference 
represents a new beginning." 
 
Die Welt opined: "Barack Obama's most useful tool is his partners' 
great goodwill.  He would be well-advised to capitalize on this 
impetus before it declines.  It was therefore right of VP Biden in 
Munich not just to keep emphasizing America's willingness to act 
multilaterally and to seek consultations, but also to ask for more 
from its partners.  The cozy times for European state leaders are 
over." 
 
Frankfurter Allgemeine headlined its front-page report on Sunday: 
"Biden:  America Needs the World - Vice President Moves Towards 
Europeans, Iran Rejects Offer of Dialogue, Merkel Threatens 
Sanctions."  In an editorial, the paper adds:  "Biden's speech 
showed that America's film script for a new world order has not yet 
been written.  Obviously the U.S. government does not yet know what 
will happen to the prisoners on Guantanamo, nor what additional 
burdens the Europeans should be asked to take on in Afghanistan. 
Biden was clever enough not to ask anything unexpected of Merkel, 
Steinmeier and Co., so it will probably end up with Germany doing 
more for civilian reconstruction in Afghanistan.  That no one 
country can resolve the problems of the world on its own is truer 
than ever." 
 
Sueddeutsche's editorial headlined: "A new America has spoken," and 
added: "The Europeans should take advantage of the chances the power 
changeover in Washington offers.  Vice President Biden said many 
things in Munich that pleased the audience: America will seek the 
advice of its partners." 
 
FT Deutschland editorialized: "It has become clear that the unipolar 
moment in global politics is over.  With his policy statement, Vice 
President Biden made clear at the Munich Security Conference that 
also the U.S. officially sees it this way.  Under President Obama, 
Washington understands itself to be one of many global players, in 
many cases the largest and most important one, but only as one of 
several.  However, Biden has also made clear that this multipolar 
world order does not mean more coziness, which some Europeans might 
have recently hoped for.  The 'new tone' sounds more cordial and 
binding that what we heard from the Bush government.  But the reason 
for this is more the audience than the statements that are made. 
Some statements that are now well-received would have been 
interpreted as an evil provocation under the Bush government." 
 
Afghanistan 
 
Frankfurter Allgemeine editorialized on VP Biden's offer of a 
bargain between the U.S. and its partners: "The share of the burden 
in Afghanistan is seen by many NATO partners as unfair.  A 
transatlantic bargain has long been debated.  Obama now seems to be 
ready to offer one to his allies.  This makes clear that also this 
President will not just submit to the desires of others or refuse to 
act if U.S. interests are at stake.  Unilateralism will remain an 
option of the superpower's policy." 
 
Die Welt opined: "In Afghanistan, NATO will not get far with 
Chancellor Merkel's comprehensive approach if NATO members are not 
willing to spend more money, to increase civilian reconstruction 
efforts, and to secure them particularly in the embattled regions 
with more soldiers....  Joe Biden has expressively invited Europeans 
to participate with their concepts in reviewing the strategy on 
Afghanistan....  The Europeans must now show that they have feasible 
proposals to win the war in Afghanistan." 
 
Berliner Zeitung argued: "At the Security Conference in Munich, U.S. 
officials appeared with a new formula for their policy in 
Afghanistan: 'cleaning, keeping, reconstructing.'  But the West is 
still far away from a concept that could be called a strategy.  It 
should at least contain two elements: the centralist approach has 
failed.  Only respect for Afghanistan's tribal culture can be a 
basis for stabilization efforts.  President Karzai, however, cannot 
act as a representative of this culture: he is the man who was 
installed by the discredited Bush administration.  Second, Pakistan 
must be integrated into talks in the foreseeable future.  The 
problem in Afghanistan can only be resolved with political stability 
in the neighboring country." 
 
Frankfurter Rundschau analyzed: "After the Bundestag elections, 
America will ask for more soldiers, and will get them.   The 
conflicts in Afghanistan, Pakistan and Iran, which is striving for 
nuclear weapons, are difficult to resolve, but it is great that the 
U.S. is changing its paradigm on Afghanistan towards more civilian 
reconstruction.  This is where the West has lost out over seven 
years.  The partners are only now considering how they can better 
coordinate their assistance." 
 
Iran 
 
Tabloid Bild am Sonntag headlined:  "Speech by Iranian Parliamentary 
President Shocks Security Conference in Munich," adding: "He was 
irreconcilable towards America and flatly rejected all offers to 
talk about the Iranian nuclear program." 
 
Frankfurter Allgemeine commented: "The conflict with Iran is 
probably the most urgent case where the new transatlantic bargain 
has to stand the test.  The regime in Tehran continues to build up 
its military nuclear capacity; Larijani's rather contrary and 
provocative declaration in Munich cannot cover up this fact.   Time 
is running out, Sarkozy said.  Washington will talk to Tehran - 
which is an old desire of the Europeans.  The U.S. will certainly 
stick to the goal that Iran must renounce its military nuclear 
program and stop supporting Islamist terrorism.   If Tehran complies 
there will be incentives--if it doesn't sanctions will be 
toughened." 
 
Handelsblatt commented: "Those who believed that Barack Obama's 
extended hand would be happily taken were wrong.  One of the reasons 
for this is also America's unclear position.  At the Munich Security 
Conference, senior officials of the new U.S. government and Iran 
came together for the first time.  But the result is disappointing 
because neither Biden not any other U.S. politician made clear what 
the new thing is they want to offer Tehran after the Bush era." 
 
U.S.-Russia 
 
Sueddeutsche commented: "Biden offered Russia cooperation in many 
respects, such as the fight against terror and disarmament.  Bush 
has done this before - however, recently in a more hostile 
atmosphere and without sufficient reference to reality.  The new 
U.S. government is certainly more credible in extending its hand. 
On the other side, however, is an old Russian leadership.  So far, 
its response was limited.  Moscow simply acknowledges the new tone, 
recognizing its own mistakes would be valuable." 
 
Frankfurter Allgemeine noted in an analytical piece on Saturday: 
"The approach NATO will take towards Moscow is not yet clear.  The 
desires of NATO's lead nation [America] will be a deciding factor. 
However, it is not yet clear which approach the Obama administration 
will pursue.  The current U.S. Ambassador Kurt Volker made his 
career under the Bush administration, which is why it is expected 
that he will leave Brussels before the summer.  One likely candidate 
is the disarmament expert Ivo Daalder....  American representatives 
are therefore reserved in current NATO meetings.   They are often 
quiet or simply express their personal opinion.  The American NATO 
delegation has obviously not yet any guidance - also not for the 
relationship with Russia." 
 
FT Deutschland opined: "Biden has not yet described new concrete 
strategies for the great trouble spots.  This would be too early 
three weeks after Obama's inauguration.  However, relations with 
Russia have been restarted.  Washington needs Moscow's help to 
resolve problems that are a great priority on Obama's agenda: 
Afghanistan, Pakistan the nuclear dispute with Iran.  This is about 
supply routes through Russian spheres of influence and diplomatic 
backing, which one does not want to endanger by arguing over a 
missile defense system in Poland and the Czech Republic or Georgia's 
NATO's membership.  Nobody must currently fear a return to the Cold 
War." 
 
¶3.   U.S. Economic Package 
 
Frankfurter Allgemeine argued: "the U.S. government is planning to 
set up a so-called Aggregator Bank, not a bad bank as many bank 
shareholders had hoped for.  This may be saddening for the 
shareholders but is at least a ray of hope for taxpayers in the 
midst of all the rescue orgies.  Those who do not want to 
nationalize all banks should also shy away from socializing the 
risks of the banks." 
 
According to Sueddeutsche Zeitung, "this sheer volume of the program 
means a break with twenty or even thirty years of U.S. economic 
policy, which disproved of any state intervention in the market. 
But Obama's change has always included a new political culture in 
Washington.  In this respect, however, Obama is making little 
progress.  The reason is not a few stubborn Republicans, but also 
Democrats who are moaning and groaning.  What Obama will get in the 
end as a stimulus package can at best be a classical compromise that 
was haggled over a backroom.  But this does not mean change in 
Washington." 
 
Handelsblatt criticizes the political influence on the daily 
business of banks and opined: "Since the large U.S. banks have been 
saved with billion of taxpayers' dollars, politicians of all parties 
and organizational levels in the U.S. are misusing the new ownership 
role of the state.  Not a single day passes, in which provincial 
politicians, governors, or lawmakers refer to the slogan that those 
who pay the band also get to call the tune.  With a view towards 
public relations, they are calling upon the banks to offer loans for 
certain projects or companies in their constituencies.  But if 
politicians are interested in setting up a healthy privately run 
banking system, it should stay out of the banks' daily business." 
 
¶4.   Russian-EU Meeting 
 
Deutschlandfunk commented: "In November, Medvedev was hardly able to 
walk because he was brimming with power.  But now European 
Commission President Barroso and his EU commissioners met a Russian 
president and a Russian premier who continue to govern a powerful 
country, but who faced the limits of this power that is based on oil 
and gas.  It is now up to Moscow to make up for lost ground.  Russia 
must take steps to restore confidence in its reliability as a 
partner.  For the EU citizens, it is important that relations 
between the EU and Russia produce results...but this can succeed 
only if promises are kept." 
 
Sueddeutsche noted: "President Medvedev is a creature of the 
authoritarian system and if he really has a vision for civil 
society, then it has only been a vision.  Almost one year after his 
election, he talks like Putin, stands like Putin, walks like Putin. 
And in such a situation a law that reduces the signature for small 
parties from 50,000 to 40,000 to be accepted for the elections does 
not fit, not even as a decoration." 
 
¶5.   German Economic Minister Resigns 
 
Deutschlandfunk commented: "Finally CSU Economic Minister Glos has 
told CSU leader Seehofer what's what.  Weary of his job and 
humiliated by the Bavarian minister president, who apparently was 
looking for a successor to Glos, the economics minister did not 
explain his resignation in a letter to the Chancellor but rather to 
Seehofer.  Glos could hardly have embarrassed Seehofer more. 
Chancellor Merkel is reacting to the self-fragmentation of the CSU 
in her usual way: not at all - at least not in the public.  But the 
CDU chancellor is responsible for the reputation of the CDU/CSU. And 
if there is something German voters do not like in a party, it is 
chaos and conflict.  So, where is the chancellor's call for order?" 
 
ARD-TV's Tagesthemen commented: "Both the CDU and the CSU considered 
it important to demonstrate an ability to act.  The prospect of 
entering the upcoming Bundestag election campaign with a listless 
economics minister who is weary of his office has not caused much 
delight in the government.  CSU leader Seehofer will come out of 
this affair in a weakened way, too.  His initial rejection of the 
offer to step down is not considered a sign of leadership." 
 
Frankfurter Allgemeine Zeitung had this to say: "On the day when the 
U.S. vice president should have made the headlines at the Munich 
Security Conference, Glos was able to attract most of the attention. 
 The trick not to send his letter of resignation to the Chancellor 
but to the CSU chairman, is demonstrating a masterly calculation. It 
emphasizes the independence of the CSU in the Cabinet more clearly 
than the coalition agreement, i.e. he is paying back the chancellor 
her lack of support.  But he is also making a fool of his party 
friend Seehofer, who was caught by surprise.  Glos has now also 
achieved the fact that, in the upcoming election campaign, Seehofer, 
not Glos, will have to take the role as scapegoat." 
 
According to Sueddeutsche, "we can say a lot of things about Glos, 
but it will remain his merit that he dared to make explicit a 
conflict which Chancellor Merkel has avoided for months: the 
conflict with CSU leader Seehofer.  Michael Glos was necessary to 
destroy Seehofer's visions of omnipotence.  It is now up to the 
Chancellor draw a line.  What this crisis has revealed is the 
weakness of the CDU/CSU with respect to its personnel, its platform, 
but also the relationship between the CDU and the CSU, Merkel and 
Seehofer.  In view of this perspective, we could even understand the 
Chancellor in trying to keep everything as it is." 
 
In the view of Frankfurter Rundschau, "Michael Glos does not want to 
step down because he refused the implementation of a political 
project.  He wants to step down because there is not a single 
project that he thinks would be worth fighting for in the coming 
seven months.  But the chancellor told the Germans that they must 
face tough times in which everyone should roll up their sleeves. But 
she should not present a minister who does not want to fight. 
Angela Merkel's credibility is also at stake." 
 
Die Welt judged: "Michael Glos was not the right man [for the job]. 
We could also say he was unqualified for the job, and everyone knew 
it.  Nevertheless, he kept his job for many years.  This is no 
evidence of a sense of responsibility, rather the misery in the 
CDU/CSU [to find the right people for the job] since it no longer 
has any economic policy orientation.  When the financial crisis then 
developed, Chancellor Merkel appeared in public with Finance 
Minister Steinbr|ck.  She felt more obliged to the articulate Social 
Democrat.  Glos's resignation is a kind of writing on the wall for 
Merkel." 
 
 
KOENIG