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Viewing cable 05PARIS6558, MEDIA REACTION REPORT - Global Economy: Cost of
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05PARIS6558 | 2005-09-26 10:42 | 2011-08-24 00:00 | UNCLASSIFIED | Embassy Paris |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 PARIS 006558
SIPDIS
DEPT FOR INR/R/MR; IIP/RW; IIP/RNY; BBG/VOA; IIP/WEU; AF/PA;
EUR/WE /P/SP; D/C (MCCOO); EUR/PA; INR/P; INR/EUC; PM; OSC ISA
FOR ILN; NEA; WHITE HOUSE FOR NSC/WEUROPE; DOC FOR ITA/EUR/FR
AND PASS USTR/PA; USINCEUR FOR PAO; NATO/PA; MOSCOW/PA;
ROME/PA; USVIENNA FOR USDEL OSCE.
E.O. 12958: N/A
TAGS: OPRC KMDR FR
SUBJECT: MEDIA REACTION REPORT - Global Economy: Cost of
Reconstruction- Iraq - Hurricanes Katrina and Rita - Political
Debate Middle East - Gaza Violence
PARIS - Monday, September 26, 2005
(A) SUBJECTS COVERED IN TODAY'S REPORT:
¶1. Global Economy: Cost of Reconstruction- Iraq - Hurricanes
Katrina and Rita - Political Debate
¶2. Middle East - Gaza Violence
B) SUMMARY OF COVERAGE:
A wide variety of stories, domestic and international, lead in
today's front pages. Left-of-center Liberation dedicates its
lead and a three-page spread to aspiring women in France's
presidential race, with Defense Minister Alliot-Marie in the
lead. Socialist Segolene Royal is the other woman politician
portrayed in Liberation as a potential candidate. Editorialist
Jean-Michel Helvig comments: "France is going through a phase
ripe for such speculation: none of the two big parties has an
uncontested or a sure-win candidate." Right-of-center Le
Figaro devotes its lead to renewed violence in Gaza. But the
editorial focuses on President Bush's dilemma regarding
reconstruction costs in Iraq and in the U.S. after Hurricanes
Katrina and Rita. La Tribune's editorial focuses on "President
Bush's Painful Choices" and devotes its front page to "G7
Concerns Over America's Deficit." (See Part C)
European Trade Commissioner Peter Mandelson is interviewed in
Le Figaro Economie after the G4: "Europe is one of the world's
most open markets, more even than the United States. Our farm
subsidies are decreasing, while in the U.S., because of the
last Farm Bill, subsidies are increasing. In the Doha cycle,
Europe will be negotiating after having made reforms. The U.S.
will have to negotiate without having implemented its reforms.
(On Airline subsidies) The U.S. has unilaterally torn its copy
of the 1992 agreement, but I still have my copy. Recently, the
President of Airbus said he preferred to negotiate with Boeing
rather than going before the WTO."
A controversy over Hewlett-Packard's decision to lay off
personnel in France as part of a wider European plan has been
growing in the past few days, leading HP's CEO for France to
give an interview in Le Figaro Economie: "HP is implanted in
France for strategic reasons and we have no plans to leave
France, which is Europe's third largest market. We have
announced a worldwide restructuring plan, with job losses
throughout Europe. And what we can observe is that the issue
has become an affair of state only in France."
The debate over Turkey's EU membership is once again a major
story. Interior Minister Sarkozy, over the weekend, toned down
his hard-line position against Turkey, "after receiving orders
from Chirac" according to France Soir, while in an op-ed in
Liberation by Pierre Lellouche, a National Assembly
Representative, explains why "Turkey has not fulfilled its
obligations and why Europe is not ready for a wider
expansion." Lellouche, previously in favor of Turkey's EU
membership, concludes: "Opening negotiations on Turkey's EU
membership on October 3, without a strong Turkish political
gesture towards Cyprus and the Armenians, is in my view
premature." In his editorial in Catholic La Croix Dominique
Gerbaud comments: "Turkey has become an issue of strong
divisions and opposition in France's political debate."
(C) SUPPORTING TEXT/BLOCK QUOTES:
Global Economy: Cost of Reconstruction- Iraq - Hurricanes
Katrina and Rita - Political Debate
"Bush Between Katrina and Iraq"
Pierre Rousselin in right-of-center Le Figaro (09/26): "Money
is the nerve center of war. For Americans, it is also becoming
the key word linking Iraq and the damages caused by Katrina
and Rita. While anti-war demonstrators marched in Washington,
Rita hit Texas and deflected attention from the protesters.
For President Bush, Hurricane Katrina presented the advantage
of making people forget about Iraq. The U.S. President, at
times looking as a commander in chief and at times as a
construction foreman, handled Rita better than he handled
Katrina. The fact that he is down in opinion polls is not as
serious as some say. What is serious is the turn of the
American political debate. Accused of having ignored the poor
and the Black, President Bush wants to spend without counting.
Known for cutting social programs, President Bush has become
an advocate of the Welfare state. And so the Republican
message has becomes murky. Those up for midterm re-election
are adding up the figures: rebuilding the south will cost as
much as the war in Iraq to-date. For President Bush, the bill
will be paid, even if it means that the deficit will grow. But
in the Republican Party concerns are growing, especially
budgetary concerns, while the Iraqi adventure keeps eliciting
more and more criticism. President Bush should watch out: his
allies know that voters hate it when things are not clear,
particularly where their money is concerned. Angela Merkel has
learned the hard way."
"Painful Choices"
Francois Xavier-Pietri in centrist La Tribune (09/26):
"Hurricane Rita turned out to be less devastating than
predicted. Small comfort for President Bush who will
nevertheless be confronted by painful choices. His financing
plan for rebuilding the South leaves the G7 and the IMF
somewhat skeptical. The budgetary equation, which the White
House is facing, is more than a little complex. The figures
announced for Katrina and Rita are to be added to the
financing needs for the calamitous adventure in Iraq and
rising oil prices. Whether over pure politics, with the
midterm elections, or over economic policy, the U.S. President
is at an impasse. But the real problem is that an America that
is forced to slow down is not good for the world's economy.
This is why G7 and IMF experts are rushing to help. But how
much can they do? After all, the answers lie with the U.S.
President."
Middle East - Gaza Violence
"Strategy"
Gerard Dupuy in left-of-center Liberation (09/26): "There has
been no grace period for Gaza. The weekend attacks are neither
surprising nor do they put the Israeli pullout in question.
The Israeli response was as always more violent than the
Palestinian attacks, which reconfirms the disproportionate
balance of firepower of the recent past. We are back to the
same situation but with a new strategy: on the Palestinian
side, it is a show of limited belligerence; on the Israeli
side it is mostly symbolic posturing with real bullets. The
pullout inevitably had to lead to a phase of consolidation,
with factions on both sides preparing for the electoral
battle. Hamas, which is seen as the winner of the elections in
Gaza, wants to take over the image of the victorious fighter,
while it demonstrates that Abbas is unable to control Gaza."
STAPLETON