VZCZCXRO9532
PP RUEHIK
DE RUEHUP #0045/01 0271534
ZNR UUUUU ZZH
P 271534Z JAN 10
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 4850
INFO RUCNMUC/EU CANDIDATE STATES COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHCH/AMEMBASSY CHISINAU 0227
RUEHKV/AMEMBASSY KYIV 0184
RUEHBS/USEU BRUSSELS

UNCLAS SECTION 01 OF 02 BUDAPEST 000045 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EUR/CE, EUR/PGI AND OES/PCI 
 
E.O. 12958: N/A 
TAGS: PREL ECON SENV EU HU
SUBJECT: HUNGARY TO HOST HIGH-LEVEL MEETINGS ON EU DANUBE 
STRATEGY FEBRUARY 25-26 
 
BUDAPEST 00000045  001.2 OF 002 
 
 
¶1.  (SBU) Summary: Hungary will host two linked but separate 
"macro-regional" gatherings in Budapest February 25-26 to 
give momentum to the EU's Danube Strategy -- an initiative 
that the GOH has identified as a priority for its 2011 EU 
Presidency.  Hungarian PM Bajnai will host a "Danube Summit" 
on February 25 (immediately following the February 24 
Visegrad 4 Meeting) with counterparts from the 8 EU and 6 
non-EU Danube Basin countries.  At the same time, the 
Hungarian MFA will host a "Danube Stakeholder Meeting" 
February 25-26 for government officials and representatives 
of international organizations and NGOs to discuss in more 
depth the thematic priorities that make up the Danube 
Strategy.  In this effort, the GOH has made clear that it is 
playing a supporting role and that the center of gravity for 
developing the strategy and operationalizing it lies in 
Brussels with the European Commission.  The GOH views the 
Danube Strategy, first and foremost, as a vehicle to obtain 
EU funds for infrastructure improvements needed to boost 
Hungary's longer term economic prospects. Upstream countries 
(in particular Germany) see it as a way to increase 
navigational capacity on the Danube and transport links in 
the region more broadly.  Balancing these economic 
imperatives with the EU's environmental objectives (as 
encapsulated in the EU's Water Framework Directive, for 
example), as well as Hungary's own environmental priorities 
spelled out in a detailed non-paper submitted to Brussels in 
December (see para 2 below), and identifying the EU funds 
needed to actually execute the Strategy, are some of the 
challenges to be worked out in the months, and years, ahead. 
End summary. 
 
--------------------------------------------- -- 
GOH in Supporting Role -- DG REGIO Has the Lead 
--------------------------------------------- -- 
 
¶2.  (SBU) In a meeting January 25 with ESTH Hub Officer, 
Ambassador Gyula Hegyi, the MFA's "Danube Ambassador," 
outlined GOH planning for two linked, but separate, 
high-level meetings to take place in Budapest February 25-26 
on the EU's Danube Strategy.  As a preface, Hegyi made clear 
that the EC's Directorate General for Regional Policy (DG 
REGIO) has lead responsibility for developing the Strategy 
and that Hungary and other national governments will play a 
supporting role in the effort.  That said, Hegyi also made 
clear that the GOH sees this as one of the signature 
initiatives of Hungary's January-June 2011 EU Presidency and 
provided us a 12-page non-paper that the GOH had sent to 
Brussels on December 15 containing further details (e-mailed 
to EUR/CE, EUR/PGI and OES/PCI on January 26).  A common 
thread that runs through the paper is the need to deepen 
economic (as well as cultural) ties in the region in a manner 
that is environmentally sustainable.  The paper outlines the 
GOH's priority themes for the strategy, including: 
 
-  Strengthening the territorial cohesion of the Danube region 
-  Moderating the social, economic and environmental 
consequences of climate change 
-  Promoting a unified EU market 
-  Promoting research and development as well as innovation 
-  Strengthening the safety of the Danube region within the 
country and across borders 
-  Sustainable economic development 
-  Strengthening co-operation and identity in the Danube 
region 
 
¶3.  (SBU) In addition to submitting the non-paper laying out 
broad thematic priorities, Hegyi said that the GOH has also 
submitted a proposed action plan made up of approximately 300 
project proposals to Brussels (most focused on infrastructure 
improvements involving bridges, tunnels, and rail lines) for 
which it would seek EU funding under the Strategy.  He noted 
that the 300 projects were the result of a selection process 
led by the Ministry for National Development and Economy that 
had involved various stakeholders within Hungary, including 
local government, NGOs and other actors. 
 
---------------------------------- 
Late February Meetings in Budapest 
and Time Line For 2010 
---------------------------------- 
 
¶4.  (SBU)  Turning to upcoming events on the calendar, Hegyi 
provided some details on the separate, but linked, high-level 
meetings in Budapest February 25-26, and how they fit into 
the broader sequence of steps that will take place this year 
 
BUDAPEST 00000045  002.2 OF 002 
 
 
to develop the Strategy. 
 
Danube Summit:  A one-day event on February 25 hosted by 
Prime Minister Bajnai at the Hungarian Parliament.  Invitees 
will include leaders from 8 EU countries (in addition to 
Hungary -- Germany, Austria, Slovakia, Slovenia, Poland, 
Romania, and Bulgaria), 6 non-EU countries (Croatia, 
Bosnia-Herzegovina, Serbia, Montenegro, Ukraine and Moldova) 
and EC President Barroso.  Hegyi said that PM Bajnai's office 
has the lead on all organizational aspects of the Summit 
meeting.  (Note:  The GOH has timed this gathering to 
immediately follow the February 24 Visegrad 4 meeting on 
energy security. End note.) 
 
Danube Stakeholder Conference:  A two-day event February 
25-26, co-organized by the EC and the Hungarian MFA at the 
Hungarian Academy of Sciences.  The conference will be opened 
by EC President Barroso and PM Bajnai and will then break 
into four panel discussions: (1) Socio-Economic Development, 
(2) Local Government, (3) Culture, and (4) Environment. 
Participants in each will include senior officials from 
relevant Ministries, as well as appropriate international and 
non-governmental organizations (in the case of environment, 
Hegyi confirmed that both the International Commission for 
the Protection of the Danube River (ICPDR) and the Regional 
Environmental Center for Central and Eastern Europe (REC) 
would participate in the Environment panel).  Foreign 
Minister Balazs will speak at the conclusion of the second 
day to draw conclusions from the conference's proceedings. 
Hegyi said that the GOH expects either Polish PM Tusk or FM 
Sikorski to speak at the event as well, to draw links between 
the Danube Strategy and the EU's earlier Baltic Strategy, in 
which Poland is strongly involved. 
 
¶5.  (SBU) Hegyi noted that the Budapest stakeholder 
conference will be the second of five planned stakeholder 
gatherings this spring that will discuss the Danube Strategy. 
 The first is scheduled for Ulm, Germany February 1-2. 
Following the February 25-26 Budapest meeting, EC-organized 
stakeholder conferences are planned for Bratislava and Vienna 
in March, Bulgaria (NFI) in April, and Romania (Danube Delta) 
in June.  All of these meetings, Hegyi noted, are to feed 
into an EC-drafted policy paper on the Danube Strategy that 
is to be released in June and sent to national governments 
for comment.  By the end of 2010, there is to be an 
"informal" vote in the European Parliament on the Strategy 
and formal adoption sometime during Hungary's January-June 
2011 EU Presidency. 
 
--------------------------------------------- - 
In the End, It's All About Economic Development 
--------------------------------------------- - 
 
¶6.  (SBU)  Stepping back from the mechanics of the process, 
Hegyi made clear that the GOH views the Danube Strategy, 
first and foremost, as a vehicle to obtain EU funds for 
infrastructure improvements needed to boost Hungary's longer 
term economic prospects.  Upstream countries (in particular 
Germany) see it as a way to increase navigational capacity on 
the Danube in order to expand and deepen commercial ties in 
the region.  Balancing these economic imperatives with the 
EU's environmental objectives (as encapsulated in the EU's 
Water Framework Directive, for example), and identifying the 
EU funds needed to actually execute the Strategy, are some of 
the challenges that will need to be worked out in the months, 
and years, ahead. 
 
KOUNALAKIS