Currently released so far... 97115 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07 2011/08
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10 2011/07/11 2011/07/12 2011/07/13 2011/07/14 2011/07/15 2011/07/16 2011/07/17 2011/07/18 2011/07/19 2011/07/20 2011/07/21 2011/07/22 2011/07/23 2011/07/25 2011/07/27 2011/07/28 2011/07/29 2011/07/31
2011/08/01 2011/08/02 2011/08/03 2011/08/05 2011/08/06 2011/08/07 2011/08/08 2011/08/10 2011/08/11 2011/08/12 2011/08/13 2011/08/15 2011/08/16 2011/08/17 2011/08/19 2011/08/21 2011/08/22 2011/08/23 2011/08/24 2011/08/25

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/03 1972/08
1973/04 1973/10
1975/03
1979/08
1985/01 1985/02 1985/03 1985/04 1985/05 1985/06 1985/10
1986/02 1986/05 1986/08 1986/09 1986/11 1986/12
1987/04 1987/06 1987/07 1987/09 1987/12
1988/01 1988/03 1988/04 1988/07 1988/08 1988/09 1988/10 1988/11 1988/12
1989/01 1989/03 1989/04 1989/06 1989/09 1989/11 1989/12
1990/01 1990/02 1990/03 1990/07 1990/08 1990/10 1990/11 1990/12
1991/01 1991/03 1991/05 1991/06 1991/07 1991/08 1991/09 1991/10 1991/11
1992/01 1992/03 1992/04 1992/05 1992/06 1992/07 1992/08 1992/09 1992/10 1992/11 1992/12
1993/01 1993/02 1993/04 1993/07 1993/10 1993/11 1993/12
1994/01 1994/02 1994/03 1994/04 1994/05 1994/06 1994/08 1994/11 1994/12
1995/01 1995/02 1995/03 1995/04 1995/05 1995/06 1995/07 1995/08 1995/09 1995/10 1995/11 1995/12
1996/06 1996/07 1996/08 1996/09 1996/11
1997/01 1997/02 1997/03 1997/04 1997/05 1997/06 1997/08 1997/09 1997/10 1997/11 1997/12
1998/02 1998/03 1998/05 1998/07 1998/08 1998/11 1998/12
1999/01 1999/09 1999/10 1999/11 1999/12
2000/04 2000/05 2000/06 2000/07 2000/08 2000/09 2000/10 2000/11 2000/12
2001/01 2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/08 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/05 2002/06 2002/07 2002/08 2002/09 2002/10 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Antananarivo Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Alexandria Consulate Adana American Institute Taiwan, Taipei
Embasy Bonn Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Brazzaville Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangui Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Cotonou Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Chengdu Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar DIR FSINFATC Consulate Dusseldorf Consulate Durban Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka Consulate Frankfurt
Embassy Guatemala Embassy Grenada Embassy Georgetown Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Izmir Consulate Istanbul
Embassy Jakarta Consulate Johannesburg Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kolonia Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Krakow Consulate Kolkata Consulate Karachi Consulate Kaduna
Embassy Luxembourg Embassy Lusaka Embassy Luanda Embassy London Embassy Lome Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy Libreville Embassy La Paz Consulate Leipzig Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Mogadishu Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maseru Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Merida Consulate Melbourne Consulate Matamoros Consulate Marseille
Embassy Nouakchott Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha Consulate Nagoya
Embassy Ouagadougou Embassy Ottawa Embassy Oslo Consulate Osaka Kobe
Embassy Pristina Embassy Pretoria Embassy Praia Embassy Prague Embassy Port Of Spain Embassy Port Moresby Embassy Port Louis Embassy Port Au Prince Embassy Podgorica Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Ponta Delgada Consulate Peshawar
Embassy Quito Consulate Quebec
REO Mosul REO Kirkuk REO Hillah REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Surabaya Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy Tirana Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USMISSION USTR GENEVA USEU Brussels US Office Almaty US Mission Geneva US Mission CD Geneva US Interests Section Havana US Delegation, Secretary US Delegation FEST TWO UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde Consulate Yekaterinburg
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AF ADANA ASEC AFIN AMGT AE AORC AID AR AO AU ASEAN AGOA AFGHANISTAN AFFAIRS AMED APER ASECARP APEC AEMR AS AA ANET AFLU ABLD AL ASUP AJ APECO AMER ABUD AODE AM AFSN AESC AND AG ALOW AROC AVIANFLU ATRN ACOA AEGR AMGMT AADP AFSI ACABQ APRM AZ AIDS ASE AGAO ADCO ABDALLAH ARF AIDAC ACOTA ASCH AC ASEG AGR ACS AMCHAMS AN AMIA ASIG ADPM ADB ANARCHISTS ALOWAR ARM AUC AINF AINT AORG AY AVIAN AMEDCASCKFLO AK ARSO ARABBL ASO ANTITERRORISM ARABL AOWC AGRICULTURE ALJAZEERA AMTC AFINM AOCR ABER ARR AFPK ASSEMBLY ASSK AZE AORCYM AINR AGMT AEC ACKM APRC AIN ASCC AFPREL ASED APERTH ASFC ASECTH AFSA AOMS AORCO ANTXON ARC AFAF ADIP AIAG AFARI AEMED AORL AX ASECAF AOPC ASECAFIN AFZAL APCS AMB AGUIRRE AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL AIT ARCH AMEX ALI AQ ATFN AMBASSADOR AORCD AVIATION ARAS AINFCY ACBAQ AOPR AREP ALEXANDER ATRD AEIR AOIC ABLDG ASEX AFR ASCE ATRA ASEK AER ALOUNI AMCT AVERY APR AMAT AEMRS ASPA AFU AMG ATPDEA ALL AECL ACAO ASECKFRDCVISKIRFPHUMSMIGEG AORD AFL AME ADM ASECPHUM AGIT ABT ASECVE AGUILAR AT ABMC ALZUGUREN ANGEL ASR ANTONIO
BMGT BEXP BM BG BL BA BR BTA BO BY BBSR BLUE BK BF BTIO BELLVIEW BE BU BN BH BD BC BTC BILAT BT BX BRUSSELS BP BB BRPA BUSH BURMA BMENA BESP BIT BBG BGD BMEAID BAGHDAD BEN BIO BMOT BWC BLUNT BURNS BUT BGMT BAIO BCW BOEHNER BFIF BOL BASHAR BIMSTEC BOU BIDEN BZ BFIN BTRA BI BHUM BOIKO BERARDUCCI BOUCHAIB BORDER BEXPC BTIU BTT BIOS BEXB BGPGOV BOND BLR
CE CG CH CVR CASC CU CI CD CO CDG CB CJAN CPAS COM CVIS CMGT CT CENTCOM CNARC CTERR COUNTER CHIEF CDC CTR CBW COUNTRY CLEARANCE CY CA CM CS CWC CN CITES CF CWG CIVS CFIS CASCC CROATIA CONS COUNTERTERRORISM CASA COE CJ CHR CODEL CR CBC CACS CHERTOFF CAS CONTROL CONDITIONS CONDOLEEZZA CITEL CV CLINTON CHG CZ CON CTBT CEN CRIMES COMMERCE CLOK CRISTINA CFED CARC CND CTM CARICOM COUNTRYCLEARANCE CBTH CHINA CSW CICTE CJUS CYPRUS CW CAMBODIA CENSUS CIDA CRIME CBG CBE CMGMT CAIO CEC CARSON CPCTC CEDAW COMESA CVIA CWCM CEA COSI CAPC CGEN COPUOS CGOPRC COETRD CKGR CFE CQ CITT CIC CARIB CVIC CLO CAFTA CVISU CHRISTOPHER CACM CIAT CDB CIS CUL CHAO CNC CL CSEP COMMAND CENTER COL CAN CAJC CUIS CONSULAR CLMT CIA CBSA CEUDA CAC CROS CIO CPUOS CKOR CVPR CONG CONTROLS CEPTER CVISCMGTCASCKOCIASECPHUMSMIGKIRF CDCE
DPOL DEMARCHE DHS DR DA DISENGAGEMENT DEMOCRATIC DEFENSE DJ DY DARFUR DHRF DEA DTRO DPRK DO DARFR DOC DRL DK DOJ DTRA DOMESTIC DAC DOD DEAX DIEZ DEOC DELTAVIOLENCE DCOM DMINE DRC DCG DPKO DOMESTICPOLITICS DE DB DOT DEPT DOE DHLAKAMA DHSX DS DKEM DAO DCM DANIEL DEM DAVID DCRM
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
FR FREEDOM FINREF FJ FI FRELIMO FOREIGN FAA FETHI FAS FTAA FRB FAO FCS FINANCE FWS FTA FEMA FDA FLU FRANCISCO FBI FORCE FO FARC FK FT FCSC FAC FM FMGT FINV FCSCEG FARM FERNANDO FINR FIN FINE FIR FDIC FOR FOI FCUL FKLU FMLN FISO FIXED
GM GMUS GG GR GE GAZA GT GH GZ GJ GLOBAL GV GABY GOI GA GCC GB GY GATT GC GUAM GEORGE GTIP GOV GOMEZ GUTIERREZ GL GKGIC GF GU GWI GARCIA GTMO GN GANGS GIPNC GAERC GREGG GUILLERMO GASPAR GERARD GI
HK HR HUMANR HUMAN HO HA HUMANRIGHTS HU HHS HIV HUM HRKAWC HILLEN HILLARY HDP HUMRIT HSTC HUMANITARIAN HCOPIL HADLEY HURI HL HRETRD HOURANI HG HARRIET HESHAM HI HNCHR HARRY HRECON HRC HOSTAGES HEBRON HUMOR HSWG HYMPSK HECTOR HN HYDE HUD HRPGOV HIGHLIGHTS
ID ILC IS IZ ICAO IMO ITU IR IAEA ICRC IPROP IT IBRD ISRAELI IRAQI ISSUES ITRA IV IO IGAD IRAQ IN IMF ICTR ISCON IADB IDB IEA INR IWC ICCAT ILO INMARSAT IOM ICJ IQ ISPA ITRD IPR INTELSAT ISN IAHRC INTERNAL IFAD IICA IHO IRAN IL IRCE IC INTELLECTUAL IRM IE ICTY IDLI IFO ISCA INF INL ISRAEL INV IBB INFLUENZA ISPL ITER ITIA INRA ISAF IACHR INTERPOL IFR IRS INRB IEF ISAAC ICC INDO IIP IATTC INAUGURATION IND INS IZPREL IACI IEFIN INNP ILAB IA IMTS ITALY ITALIAN IFIN IRAJ IX ICG IF ITPHUM ITA IP IACW IK IUCN IZEAID IRPE IDA ISLAMISTS ITF INRO IBET IDP IRC ISO ICES IRMO ITPGOV IQNV IMSO IRDB IMET INCB IFRC
JA JO JP JM JCIC JOHN JE JEFFERY JS JUS JN JOHNNIE JAMES JKUS JOSEPH JML JAWAD JSRP JIMENEZ JOSE JKJUS JK JAPAN
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
LE LU LH LA LG LO LY LANTERN LI LABOR LORAN LTTE LT LAS LAB LAW LVPR LARREA LEBIK LAURA LS LOTT LOVE LR LEON LAVIN LGAT LV LAOS LOG LN LB
MOPS MO MARR ML MASS MZ MR MNUC MX MV MCC MY MEDIA MTCRE MG MCAP MOPPS MP MI MK MC MD MA MU MASC MW MT MEPP MN MTCR MH MEPI MIL MNUCPTEREZ MMAR MICHAEL MUNC MDC MPOS MONUC MAR MGMT MAS MEPN MENDIETA MARIA MONTENEGRO MOOPS MSG MARITIME MURRAY MUKASEY MOTO MCA MFO MEX MRSEC MMED MACP MAAR MINUSTAH MCCONNELL MAPP MGT MARQUEZ MANUEL MNUR MCCAIN MF MOHAMMAD MOHAMED MNU MFA MILITANTS MINORITIES MTS MLS MILI MIAH MEETINGS MERCOSUR MED MARAD MNVC MINURSO MNUCUN MIK MARK MBM MPP MILITARY MAPS MNUK MILA MTRRE MACEDONIA MICHEL MASSMNUC MUCN MQADHAFI MPS MARRGH MRCRE MTRE MORALES MAP MCTRE MHUC MOPSGRPARM MOROCCO MCAPS
NL NU NS NI NPT NATO NO NG NATEU NSF NZ NAS NP NDP NLD NGO NEPAD NAFTA NASA NEA NGUYEN NIH NK NIPP NONE NR NANCY NEGROPONTE NRR NERG NSSP NSG NSFO NE NATSIOS NFSO NATIONAL NTDB NT NCD NTSB NRC NELSON NAM NH NPG NEC NSC NFATC NMFS NATOIRAQ NAR NZUS NARC NCCC NA NC NEW NRG NUIN NOVO NATOPREL NEY NV NICHOLAS NPA NW NARCOTICS NORAD NOAA NON NTTC NKNNP NMNUC NUMBERING
ODIP OIIP OPRC OSCE OREP OTRA OPET OSCI OVIP OECD OCII OUALI OPDC OEXC OFPD OPIC OFDP OPCW OECV OAS OM OMIG ODAG OPREP ORA OIC OEXCSCULKPAO OIG OASS OFFICIALS ORTA OSAC OIL OIE OEXP OPEC OPDAT OMS OES OHI OMAR OCRA OFSO OCBD OSTA OAO ONA OTP ORC OAU OXEC OA ODPC OPDP OVIPPRELUNGANU OASC OSHA OPCD OTR OPPI OPCR OF OFDPQIS OSIC OHUM OSTRA OASCC OBSP OFDA OPICEAGR OIM OGAC OTA OTRAORP OPPC OESC OCEA OVP ON OPAD OTAR OCS ODC OTRD OCED OSD ORUE OREG
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS
QA QUAN QUOC QM QI QADRI QT QU
RS REFUGEES RW RP RELFREE RO REGIONAL RIGHTS REACTION REPORT RU RENAMO RIGHTSPOLMIL REFORM RM REFUGEE REL RELATIONS ROW RREL REGION RATIFICATION RBI RICE ROOD RODENAS RUIZ RODHAM ROBERT RGY ROY REUBEN RELIGIOUS RUEHZO RODRIGUEZ RUEUN RELAM RSP RF RSO RCMP REO ROSS RPTS RENE REID RUPREL RMA RI REMON RPEL RFE RFIN RA RAFAEL RAY RUS RPREL ROBERTG RECIN RAMONTEIJELO
SNAR SP SN SMIG SL SOCI SU SG SF SENV SZ SOE SCUL SY SO SR SYR SE SA SW SIPDIS SCIENCE SADC SI SCI SOCIETY SC SAARC STR SECRETARY SANC SSH ST SNA SGWI SEP SOCIS SETTLEMENTS SPECIALIST SK SHUM START STET SCVL SREF SCHUL SCUIL SYRIA SECURITY SPCE SYAI SMIL SOWGC STEPHEN SNRV SKCA SENSITIVE SECI SNAP SPP SCUD SOM SPECI SMIGBG SENC SCRM SGNV SECTOR SENVEAGREAIDTBIOECONSOCIXR SENVSXE SASIAIN SACU SENVSPL SWMN STEINBERG SOPN SOCR SCOI SCRS SILVASANDE SWE SARS SNARIZ SUDAN SENVQGR SM SNARKTFN SAAD SD SAN SIPRNET STATE SENS SUBJECT SFNV SECSTATE SSA SPCVIS SOI SOFA SCULKPAOECONTU SPTER SKSAF SENVKGHG SHI SEVN SANR SPSTATE SMITH SCOM SH SNARCS SNARN SIPRS SNARM SIPDI SCPR SNIG SELAB SULLIVAN SENVENV SECDEF SOLIC SOIC SPAS SASC SOSI SEC SEN SENVCASCEAIDID
TU TH TW TSPA TRGY TPHY TBIO TIFA TS TZ TX TSPL TT TK TC TINT TERFIN TERRORISM TIP TURKEY TI TECHNOLOGY TNGD TRSY TRAFFICKING TOPEC TPSL TP TD TR TA TIO TREATY TO THPY TECH TRADE TPSA TG TAGS TF TRAD THKSJA TVBIO TNDG TN TBIOZK TWI TV TWL TRT TWRO TSRY TTPGOV TAUSCHER TRBY TRBIO TL TPKO TIA TGRY TSPAM TREL TNAR TBI TFIN TPHYPA TWCH THOMMA THOMAS TERROR TRY TBID TPP TE THANH TJ TBKIO
UNGA USUN UN UG UNSC UK UP US UNCTAD UNVIE UNHRC USTR UNAMA UNCRIME UNESCO UV UNDP UNHCR UNCSD UNCHR UZ USAID UNEP UNO UNPUOS UY UNDC UNCITRAL UNAUS UNCND UA UNMIK USTDA USEU USDA UNICEF UR UNFICYP USNC USTRRP UNODC UNRWA UNOMIG USTRPS USAU USCC UNEF UNGAPL UNFPA UNSCE USSC UGA UEU UNMIC UNTAC UNION UNCLASSIFIED USPS UNA UMIK USOAS UNMOVIC UNFA UNAIDS UNCHC USGS UNSE UNRCR UNTERR USG UE UAE UNWRA UNCSW UNSCR UNCHS UNDESCO UNPAR UNC UB UNSCS UKXG UNGACG UNREST UNHR USPTO UNFCYP USCG UNIDROIT UNSCD UPU UNBRO UNECE USTRUWR UNCC UNESCOSCULPRELPHUMKPALCUIRXFVEKV
VM VE VT VETTING VN VZ VIS VC VTPREL VIP VTEAID VTEG VOA VA VTIZ VANG VISIT VO VENZ VAT VI VEPREL VEN
WFP WTO WHO WTRO WBG WMO WIPO WA WI WSIS WHA WCL WE WMN WEBZ WS WAR WZ WMD WW WILLIAM WEET WAEMU WM WWBG WWT WWARD WITH WMDT WTRQ WCO WEU WALTER WRTO WB WHTI WBEG WCI WEF WAKI WHOA WGC
XA XM XR XL XY XC XK XF XT XD XG XI XH XB XE XW XX XV XXX XJ XU XS XZ XQ XO XP XFNEA XTAG
YM YMOEXC YI YE YL YEH YMCS YOUSSEF YU
ZO ZI ZK ZR ZF ZU ZL ZP ZA ZIM ZANU ZJ ZM ZOELLICK ZCTU ZB ZN ZH ZT ZFR ZEALAND ZW ZXA

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 04FRANKFURT8337, European Commission Proposes Changes to Stability

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #04FRANKFURT8337.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04FRANKFURT8337 | 2004-09-27 08:17 | 2011-08-24 01:00 | UNCLASSIFIED | Consulate Frankfurt

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 05 FRANKFURT 008337

    SIPDIS

    SENSATIVE

    STATE FOR EUR PDAS RIES, EB, EUR/AGS, AND EUR/ERA
    STATE PASS FEDERAL RESERVE BOARD
    STATE PASS NSC
    TREASURY FOR DAS LEE
    TREASURY ALSO FOR ICN COX, HALL
    PARIS ALSO FOR OECD
    TREASURY FOR OCC RUTLEDGE, MCMAHON

    E.O. 12958: N/A
    TAGS: ECON EFIN EUN
    SUBJECT: European Commission Proposes Changes to Stability
    Pact:  Rules and Reality

    T-IA-F-04-008

    This cable is sensitive but unclassified.  Not/not for
    Internet distribution.

    ¶1.   (SBU) Summary:  On September 3 the European Commission
      initiated a discussion of possible changes to the Stability
      and Growth Pact (SGP).  The Commission is seeking to find a
      balance between flexibility that accommodates individual
      country circumstances and strict rules that instill
      necessary budget discipline.  The initial reaction of
      Finance Ministers was to welcome an examination of ways to
      strengthen the SGP, but to rule out any changes to the
      Treaty while keeping any regulatory changes to an absolute
      minimum.  The discussion will continue at the November
      Ecofin Council session. Any final outcome is unlikely until
      the first half of next year.

    ¶2.   (SBU) On balance the Commission's suggestions are
      useful and arguably could be adopted   without changes to
      the regulations. Agreeing to changes in implementation of
      the SGP could provide the Commission a way out of the dead
      end in which it has found itself since last November when
      its interpretation of the rules differed from that of
      Council's.   More rules, however, would not guarantee better
      implementation of the SGP.  Key decisions on excessive
      deficit procedures (EDP) still will be political and taken
      by the Council.  In a match up of rules versus reality,
      reality wins.  End Summary.

    Commission Launches Debate
    --------------------------

    ¶3.   (SBU) On September 3 the European Commission issued a
      "Communication" that commenced a debate on possible changes
      to the Stability and Growth Pact (SGP).  The Pact is
      composed of provisions from the EU Treaty, Council
      Regulations, and a Council Resolution.  The Commission
      states that tensions have accumulated in the application of
      the SGP leading to a "loss of credibility and ownership and
      institutional uncertainty."

    ¶4.   (SBU) The Commission's proposals are for a
      "strengthened" SGP and a Code of Conduct containing specific
      economic-analytical tools to allow consistency in budgetary
      surveillance.  According to a senior Commission official,
      the Commission is seeking to strike a balance between rules
      that can take into account each country's unique economic
      circumstances and those that are sufficiently strict to
      instill necessary budgetary discipline. Another theme,
      according to this official, is to place more emphasis on
      "preventative" measures, e.g. taking steps to reduce
      deficits in good economic times, rather than only
      concentrating on "corrective' measures.

    Key Elements of Commission Proposals
    ------------------------------------

    ¶5.   (SBU) The Commission proposes to (a) refocus the SGP;
      (b) better coordinate budgetary policies; and (c) improve
      enforcement.

    ¶6.   (SBU) With respect to refocusing the SGP the Commission
      suggests:

               i.   Placing more focus on government debt and
                sustainability.  The Commission suggests making the debt
                criterion of the Treaty operational (e.g. initiate an
                "excessive debt procedure" when the debt exceeds the 60%
                reference value) and clarifying the basis on which to ass
                a "satisfactory pace" of debt reduction, including an
                assessment of debt sustainability that takes into account
                pensions, contingent liabilities, and assets.
    ii.  Allowing for more country-specific circumstances in
    defining the medium-term deficit objective of "close to
    balance or in surplus."  A country with a higher debt level,
    for example, would be subject to a more stringent
    interpretation of the notion of "close to zero or in
    surplus" over the medium-term than a country with a lower
    debt level.
    iii. Considering economic circumstances and developments in
    implementation of the Excessive Deficit Procedure (EDP).
    One option would be to redefine the "exceptional
    circumstances" clause that can be invoked to avoid an EDP by
    adding the notion of "prolonged economic downturn" as such
    an "exceptional circumstance."  Another approach would be to
    allow country-specific deadlines for action rather than the
    standard ten months after the date new budget data is
    released, thereby seeking to better reflect a country's
    cyclical development and debt level.
    iv.  Ensuring earlier actions to correct inadequate
    budgetary developments.  Under this approach the Commission
    would issue early warnings directly to member states when
    deficits are close to 3% (a point on which Ministers have
    agreed in the Constitutional Treaty) but also in good times
    if a government is not moving close to balance or surplus.
    The Commission also could issue recommendations under the
    Broad Economic Policy Guidelines (BEPG).

    ¶7.   (SBU) On coordination budgetary policies, the
      Commission would like to reinforce the link between BEPG,
      budget programs submitted under the SGP and national
      budgetary processes.  BEPG address recommendations to member
      states on structural policies, such as health care and
      pension systems and labor and capital markets.  The
      Commission believes that economic and budgetary policies
      need to set the "right priorities toward economic reforms,
      innovation, competitiveness and strengthening of private
      investment and consumption, thereby contributing toward
      achieving the economic objectives of the Lisbon strategy."

    ¶8.   (SBU) The Commission suggests that Stability and
      Convergence Programs should define the medium-term budget
      strategy at the beginning of a country's budget cycle.  At
      present all Stability and Convergence programs are submitted
      to the Commission in early December, regardless of a
      country's own budget cycle. Synchronizing national and EU
      level budget exercises would allow a member state to reflect
      the   Commission's and Council's assessments of its proposed
      national budget as well as the BEPG's in its national
      deliberations.  Such sequencing would increase the
      interaction between European and national levels to include
      national parliaments in the debate.

    ¶9.   (SBU) With respect to enforcement, the Commission
      suggests improving the quality, timeliness and reliability
      of fiscal statistics, the effectiveness of peer pressure
      (naming, shaming and blaming), and greater transparency and
      accountability on budgetary policies (including reports to
      the European Parliament and greater involvement of national
      parliaments).  These would complement a change already
      agreed to by Ministers in the context of the Constitutional
      Treaty, namely that the Commission be authorized to send
      early warnings directly to countries without securing
      Ecofin's approval.

    Finance Minister's Take
    -----------------------

    ¶10.  (SBU) At their informal meeting in the Netherlands on
      September 10, EU Finance Ministers issued a short statement
      reflecting on the Commission's ideas.  The thrust of these
      comments is toward strengthening, or at least improving the
      implementation of, the SGP.  Ministers ruled out changing
      the Treaty (i.e. 3% deficit and 60% debt reference values to
      remain) and want only minimum changes to the regulations,
      "if necessary at all."  Specifically, the Ministers asked
      the Economic and Finance Committee to work out elements on
      the following issues:

         ¶1.   Strengthening the preventative arm of the SGP by having
           budget discipline in good times to gradually achieve
           budgetary surpluses, practicing peer pressure, and having
           transparent budget figures and growth assumptions.
    ¶2.   Enhancing the focus on debt and its sustainability by
    having debt over the reference value diminish at a
    satisfactory pace, taking into account the future costs of
    aging and implications of pension reforms.
    ¶3.   Drawing a distinction between measures taken and
    economic forecasting errors when assessing compliance with
    Council decisions; and
    ¶4.   Having budgetary policies set the right priorities
    towards structural reforms, innovation, and competitiveness
    in support of the Lisbon agenda to promote economic growth
    and employment creation.

    Some Views: To Modify or Not to Modify
    --------------------------------------

    ¶11.  (SBU) A German Finance Ministry official noted that the
      informal Ecofin seemed to concentrate on areas that would
      strengthen the rules, an outcome he suspected was driven by
      the Dutch Presidency that has taken a strict line in
      implementing the SGP.  A Commission official explained that
      the Ministers' statement reflects areas on which there was
      consensus.  This official suspects that some member states
      would support more flexibility.  According to a senior
      Bundesbank official, some of the new member states' central
      bankers and finance ministers are none too pleased with
      contemplated changes to the rules that they have been
      required to use in drawing up their medium-term budget
      programs.

    ¶12.  (SBU) Another German official speculated that the
      Economic and Finance Committee would not suggest any changes
      to the regulations.  This position was supported strongly by
      European Central Bank President Trichet at his September 22
      hearing before the European Parliament.   A senior
      Bundesbank official, however, was not sanguine that this
      position would hold.  The Dutch, Austrians and Nordics
      continue to toe the line against changes, but Germany, once
      the leader of this pack, is no more, in his view.

    ¶13.  (SBU) Three points in the Commission's proposals would
      require a change in regulations according to a Commission
      official.  These would be to (a) modify the definition of
      "exceptional circumstances;" (b) provide for another
      timetable for sanctions to be taken rather than the 10
      months from the date that new budget data is released; and
      (c) modify the timetable to correct the excessive deficit to
      reflect a country's circumstance rather than requiring it be
      done "a year after its identification."  A senior Luxembourg
      Finance Ministry official believed that some of these
      changes would be necessary to bring more clarity in how the
      SGP is being implemented.  In his view, these neither
      strengthen the SGP nor weaken it.

    ¶14.  (SBU) A French Finance Ministry official generally
      supported the main ideas of the Commission's paper, but
      cautioned that the details could prove to be tricky.  Tying
      national budget cycles to the EU-level Stability Programs or
      giving more weight to the BEPG are, in his view, unlikely.

    Next Steps
    ----------

    ¶15.  (SBU) The Economic and Finance Committee will flesh out
      Ministers' ideas with a view to having a first discussion at
      the November Ecofin.  European Commission staff expect
      discussions to roll into the next year.  After the Ecofin
      Council has concluded its deliberations, the Commission must
      present recommendations to the Council for approval.  A
      Senior Luxembourg Finance Ministry official thought wrapping
      up the exercise in the first half of next year would be
      "fortunate."  He hopes they can conclude the work during the
      Luxembourg Presidency.

    Observations
    ------------
    ¶16.  (SBU) According to a senior German official, the
      College of the European Commission agreed to taking the
      Council to the European Court of Justice over the excessive
      deficit cases of Germany and France provided that it also
      developed ideas for improving implementation of the SGP.
      This has positioned the Commission to devise new approaches
      to implementing the SGP.  In doing so, it could provide a
      way out of the dead end it has found itself by sticking to a
      recommendation that the Council could not adopt last
      November (see septel).  While this commitment was taken
      while Commissioner Solbes was in charge of DG Economics and
      Finance, the new Commissioner Alumina is more "politically
      savvy," according to this German official, and wants to find
      a compromise that member states can live with.  The
      Commission has put its "cards on the table."

    ¶17.  (SBU) We would agree with the Commission staff
      observation that most of their suggestions and those of the
      Finance Ministers could be implemented without any changes
      in the regulations.  The Commission staff already examines
      cyclically adjusted balances as part of their overall
      assessment of a country's fiscal position.  We would also
      argue that the "special circumstances" clause can be
      interpreted to make allowances for the timing of the
      adjustment path to correct the deficit.  The German Finance
      Ministry has argued that the unforeseen, prolonged economic
      slow done is such a "special circumstance."  On the other
      hand, expanding the definition of "exceptional
      circumstances" would allow countries to avoid any EDP and
      more intense budget scrutiny. This would not be helpful.

    ¶18.  (SBU) Putting more focus on debt would be a welcomed
      change.  After all, financing costs are driven, in part, by
      the stock of debt and its dynamics rather than the deficit
      of a single year.  Seven of the Euro 12 (or nine of the EU
      25) are over the 60% limit, three of the 12 are close to the
      100% level (Italy, Greece and Belgium).  The 60% limit was
      established in the 1990's when that was the average stock of
      debt for the prospective euro area.  That number has gone up
      to 70% in 2003.  In its latest World Economic Outlook, the
      International Monetary Fund confirms that the EU has
      demonstrated an "unsustainable deficit bias" since the
      creation of the European Monetary Union.

    ¶19.  (SBU) Subjecting member states to peer review when
      budgets are in better shape also makes sense.  The authors
      of the IMF report cited above note that a "key priority in
      the reform of the SGP should be to enforce greater fiscal
      restraint in good times" in light of the costs of aging
      populations that loom larger and closer.  Deutsche Bank
      Research has calculated that a one percentage point increase
      in EU government deficits raises 10 year government bond
      yields by 36 percentage points.  Rather than spending money
      on deficit financing it might be better be spent easing
      structural reforms or cutting taxes.

    ¶20.  (SBU) Better forecasts and statistics (as in the case
      of Portugal and Greece) are very important.  Uncritically
      accepting national budget forecasts is nice, but unhelpful
      in the budget surveillance process.  A little tough love
      would be better.

    ¶21.  (SBU) Providing better consistency between budget
      proposals and structural reforms, innovation and competition
      covered in the Broad Economic Policy Guidelines make sense.
      The SGP should not be just a numbers game, but a discussion
      of economic policies designed to promote growth and
      employment.  Deficit spending does not mean the money is
      spent wisely.  Promoting such consistency would bring EU
      level macro efforts into the national arena, the purview of
      member states - a move many member states are likely to
      resist.

    ¶22.    (SBU) One issue confronting the Commission is whether
      the rules should be drafted to reflect economic reality or
      whether it is implementation that is to reflect the reality.
      Drafting more precise rules will not solve the issue of
      political will.  That, or the absence thereof, still will
      reside with the Council.

    ¶23.  (U)This cable coordinated with Embassies Berlin,
      Luxembourg, Paris, The Hague and USEU Brussels.

    ¶24.  (U)POC: James Wallar, Treasury Representative, e-mail
      wallarjg2@state.gov; tel. 49-(69)-7535-2431, fax 49-(69)-
      7535-2238

    Bodde

`