VZCZCXRO3840
RR RUEHIK
DE RUEHFR #1743 3570927
ZNR UUUUU ZZH
R 230927Z DEC 09
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 7964
INFO RUEATRS/DEPARTMENT OF TREASURY WASHDC
RHEHAAA/WHITE HOUSE WASHDC
RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS PARIS 001743 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR PREL FR
SUBJECT:  FRENCH MFA DIRECTOR GENERAL DISCUSSES POST-LISBON 
CHALLENGES FOR U.S.-EU RELATIONS WITH EEB A/S FERNANDEZ 
 
¶1.  (SBU) Summary:  On his first official visit to Europe as EEB 
Assistant Secretary, Jose W. Fernandez called on French MFA Director 
General for Sustainable Development, Christian Masset, on December 
¶8.  Fernandez described his priorities as A/S and expressed 
commitment to promoting stronger U.S.-EU economic ties.  Masset 
discussed the impact of the Lisbon Treaty and the emergence of the 
G20 on the EU, global governance, development assistance, and 
U.S.-EU relations.  He predicted that post-Lisbon political 
processes could complicate important issues on the transatlantic 
agenda.  Both officials agreed to continue their dialogue over the 
coming months.  End summary. 
 
¶2.  (SBU) Travelling to Paris for the OECD Global Investment Forum, 
A/S Fernandez also met with French officials and U.S. business 
representatives.  He called on Christian Masset, the MFA's DG for 
Sustainable Development and also France's G20 and G8 sous-sherpa. 
Masset's portfolio includes development and global matters as well 
as economic issues.  In response to Fernandez's question about the 
dynamics of the EU post Lisbon, Masset explained that the EU would 
transform into a full global actor.  To date, EU economic policy, 
other than trade policy, has centered on the internal market.  Now 
the EU would be in a position to develop fully its relations with 
the rest of the world.  He noted the longstanding concern with the 
number of European seats in every multilateral body, but said that 
as the world moved towards a more rule-based, less-discretionary set 
of economic relations, the European experience with integration 
would be increasingly important. 
 
¶3.  (SBU) On global financial architecture, Masset noted that before 
Pittsburgh, the emerging economies were forced to accept the rules 
of the developed world in exchange for access.  Post-Pittsburgh, 
they became full members and will seek to change the current rules 
of the system.  Masset thought that the implications of this 
evolution required continuing discussion by the G8.  On foreign 
assistance, Masset said that traditional official development 
assistance appeared to have reached its limits both in terms of 
amounts and effectiveness.  He asked the USG to take a fresh look at 
innovative finance mechanisms for global challenges such as climate 
change, or public health. 
 
¶4.  (SBU) Commenting further on Lisbon, Masset said that over the 
next two years, the EU would be working on its long-term budget 
perspective and figuring out how to follow up the 2000 Lisbon 
Strategy on creating a competitive, knowledge-based economy.  He 
pointed to the Commission's Europe 2020 plan as the starting point. 
Masset emphasized that "Europe" is no longer an aspiration or a goal 
but is now a set of rules, norms and standards that are omnipresent 
in the lives of Member State citizens.  This makes the European 
Union both less popular and more tangible.  For example, he said, 
three fourths of the legislation passed by member state parliaments 
now represents implementation of EU directives. 
 
¶5.  (SBU) On U.S.-EU relations, Masset foresaw a number of potential 
problems emerging from the implementation of collective or societal 
European preferences, particularly over consumer protection and the 
precautionary principle.  He also thought that different approaches 
to patent law and intellectual property protection could be 
contentious issues along with public procurement policies in an era 
of increased government finance in the economy.  He understood that 
the U.S. was driving to reorient its economy from consumption 
towards greater production and exports and said that Europe would 
need to adapt to this recalibration of the U.S. economy. 
 
¶6.  (U)  A/S Fernandez cleared this cable. 
 
Rivkin