VZCZCXRO2544
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSL RUEHSR
DE RUEHMD #0730/01 2021511
ZNR UUUUU ZZH
R 211511Z JUL 09
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 0973
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHLA/AMCONSUL BARCELONA 4061

UNCLAS SECTION 01 OF 02 MADRID 000730 
 
SENSITIVE 
SIPDIS 
 
EUR/ERA (JONATHON KESSLER AND ALESSANDRO NARDI) AND EUR/WE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SP EU
SUBJECT: SPAIN'S EU PRESIDENCY PRIORITIES: ECONOMIC REFORM, SUMMITS, 
AND THE LISBON TREATY 
 
REF: MADRID 99 
 
MADRID 00000730  001.2 OF 002 
 
 
¶1. (U) Summary: The Spanish Congress recently approved Spain's EU 
Presidency priorities as outlined by the Foreign Affairs Ministry. 
The priorities are threefold: economic recuperation and creating 
employment opportunities, developing Europe as a global actor, and 
implementing the Lisbon Treaty.  We expect these broad goals to be 
further refined in response to activities during the next five 
months of the Swedish EU Presidency. 
End Summary. 
 
¶2. (U) Further defining objectives under the first goal regarding 
the economy and job creation, the GOS distinguishes between the 
financial crisis and related crises in the "true economy."  With 
respect to the financial crisis, the GOS plans to develop 
initiatives or legislative measures in order to: 
-- increase transparency in financial regulation; 
--  regulate rating agencies; 
--  reinforce a "prudential framework" with respect to financial 
regulation; 
-- introduce counter-cyclic elements in financial regulation; 
--  strengthen the infrastructure of capital markets; 
-- establish a European financial supervision mechanism; 
-- establish a financial crisis management system to provide 
temporary intervention and resolution in bank crises; 
-- further develop the European financial services market; and 
-- collaborate internationally in the development of a new 
international financial order based on transparency, sound banking 
practices, responsibility, and integrity. 
 
On the other side of economic reform, defined as changes related to 
the "true economy," the GOS will focus on: 
-- Lisbon Treaty revisions, paying attention to questions of 
education and research and development; 
--  job creation; 
--  integration of the European energy policy and 
development/application of climate change measures (to include 
adoption of the 2010-2012 Energy Action Plan and application of 
agreements as a result of the Copenhagen Conference); 
--  development of a new European Social Agenda; 
--  development of a 2011-2015 Gender Equality Plan; 
--  adoption and application of the Decent Work Agenda, developed by 
the UN's International Labor Organization, as the presidency 
corresponds with Europe's Year of the Fight Against Poverty and 
Social Exclusion; and 
--  application of the Stockholm Program; furthering the development 
of a European judicial system, deepening mutual understanding and 
execution of judicial decisions; and reinforcing the common position 
on immigration and asylum. 
 
¶3. (U) Spain's second priority -- elevating Europe in the global 
arena -- will aim to consolidate strategic associations with key 
regional actors and seek solutions to conflicts in the Middle East 
and Caucasus.  The following summits will take place: 
--  EU-Latin America/Caribbean Summit (in Spain), wherein Spain 
hopes to sign the EU-Central America Association Agreement and the 
multi-party commercial agreement with Andean Community partners; 
-- EU-US Summit (in Spain), to focus on renewal of the Transatlantic 
Agenda and identifying new areas for cooperation; 
--  EU-Mexico Summit (a first); 
--  EU-Canada Summit, wherein the parties are expected to move 
forward with the commercial agreement; 
--  the second Summit of Heads of State and Government for the Union 
of the Mediterranean, for review and analysis of the "Paris 
projects;" 
--  EU-Morocco Summit (a first); 
--  EU-Japan Summit; 
--  EU-Russia Summit, wherein the GOS expects to make notable 
advances in the negotiation of a new EU-Russia agreement; 
--  EU-Eastern European ministerial meeting; 
--  Revision of the Cotonou Accord in preparation for the EU-Africa 
and EU-ASEM Summits to take place under the Belgium presidency; and 
 
--  EU enlargement, to include ratification of Croatia's accession 
into the EU, further progress on negotiations for Turkey's EU 
accession, and development of a Stabilization and Association 
Agreement with Macedonia. 
 
¶4. (U) Spain's application of the Lisbon Treaty will focus on the 
new institutions, strengthening the Parliament, new competencies 
(education, health initiatives, intellectual property protection, 
climate change, and administrative cooperation), strengthening 
solidarity and common interests among EU citizens, ensuring the 
binding nature of the EU Charter of Fundamental Rights, and creating 
an EU Diplomatic Corp. 
 
¶5. (SBU) At a recent roundtable discussion entitled "The Spanish EU 
Presidency in a World of Crisis," many academics and politicians 
 
MADRID 00000730  002.2 OF 002 
 
 
criticized Spain's agenda as presented, calling it ambiguous and 
without focus and questioning the utility of the many summits. 
While some panel members, including A/S-equivalent Lopez Garrido, 
defended the agenda, asserting that Spain will live up to the 
ambitious expectations, at least one GOS official narrowed the 
scope.  Milagros Hernando, Director General for Security and 
International Affairs with the Office of the President, emphasized 
economic reform, EU solidarity, energy security and climate change, 
and EU global relations as critical Spanish EU priorities. She 
acknowledged that "Spain cannot change the world during our 
Presidency," adding that the GOS must, however, responsibly manage 
the broader issues. 
 
CHACON