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Viewing cable 09BERLIN125, MEDIA REACTION: IRAQ, DAVOS, TURKEY-ISRAEL, FINANCE,
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09BERLIN125 | 2009-02-02 13:13 | 2011-08-24 01:00 | UNCLASSIFIED | Embassy Berlin |
R 021313Z FEB 09
FM AMEMBASSY BERLIN
TO SECSTATE WASHDC 3175
INFO WHITE HOUSE WASHINGTON DC
SECDEF WASHINGTON DC
DIA WASHINGTON DC
CIA WASHINGTON DC
DEPT OF TREASURY WASHINGTON DC
FRG COLLECTIVE
AMEMBASSY BRUSSELS
AMEMBASSY LONDON
AMEMBASSY PARIS
AMEMBASSY ROME
USMISSION USNATO
USMISSION USOSCE
HQ USAFE RAMSTEIN AB GE
HQ USEUCOM VAIHINGEN GE//J5 DIRECTORATE (MC)//
CDRUSAREUR HEIDELBERG GE
UDITDUSAREUR HEIDELBERG GE
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