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### Viewing cable 09BERLIN1148, MEDIA REACTION: AFGHANISTAN, EU, ECONOMIC, U.S.-WILSON

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09BERLIN1148 | 2009-09-17 11:11 | 2011-01-13 05:05 | UNCLASSIFIED | Embassy Berlin

`

    VZCZCXRO7934
    RR RUEHAG RUEHDF RUEHLZ
    DE RUEHRL #1148/01 2601149
    ZNR UUUUU ZZH
    R 171149Z SEP 09
    FM AMEMBASSY BERLIN
    TO RUEHC/SECSTATE WASHDC 5220
    INFO RHEHAAA/WHITE HOUSE WASHINGTON DC
    RUEKJCS/SECDEF WASHINGTON DC
    RHEFDIA/DIA WASHINGTON DC
    RUEAIIA/CIA WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUCNFRG/FRG COLLECTIVE
    RUEHBS/AMEMBASSY BRUSSELS 1542
    RUEHLO/AMEMBASSY LONDON 0234
    RUEHFR/AMEMBASSY PARIS 0757
    RUEHRO/AMEMBASSY ROME 2282
    RUEHNO/USMISSION USNATO 1289
    RUEHVEN/USMISSION USOSCE 0475
    RHMFIUU/HQ USAFE RAMSTEIN AB GE
    RHMFISS/HQ USEUCOM VAIHINGEN GE//J5 DIRECTORATE (MC)//
    RHMFISS/CDRUSAREUR HEIDELBERG GE
    RUKAAKC/UDITDUSAREUR HEIDELBERG GE

` `

    UNCLAS SECTION 01 OF 04 BERLIN 001148

    STATE FOR INR/R/MR, EUR/PAPD, EUR/PPA, EUR/CE, INR/EUC, INR/P,
    SECDEF FOR USDP/ISA/DSAA, DIA FOR DC-4A

    VIENNA FOR CSBM, CSCE, PAA

    "PERISHABLE INFORMATION -- DO NOT SERVICE"

    SIPDIS

    E.0. 12958: N/A
    TAGS: OPRC KMDR KPAO GM US RS IR PK IN IC
    SUBJECT: MEDIA REACTION: AFGHANISTAN, EU, ECONOMIC, U.S.-WILSON

    ¶1.   Lead Stories Summary
    ¶2.   (Afghanistan)   Presidential Elections
    ¶3.   (EU)   Barroso Election
    ¶4.   (Economic)   U.S. Recession, Lehman Bros.
    ¶5.   (U.S.)   Issue of Race in America

    ¶1.   Lead Stories Summary

    ZDF-TV's and ARD-TV's primetime newscasts opened with stories on the
    European Parliament's reelection of Jose Manuel Barroso to a second
    term as EC President. Newspapers led with various stories.
    Frankfurter Allgemeine, Berliner Zeitung and FT Deutschland led with
    reports on election fraud allegations against President Karzai.
    Stern magazine's cover story said: "Get out of Afghanistan-but when
    and how?"  Editorials focused on the Barroso's reelection and the
    German election campaign.

    ¶2.   (Afghanistan)   Presidential Elections

    The EU observers' statement that a quarter of all Afghan votes are
    questionable is a major story in the German media this morning.
    Front-page headlines included:  "EU accuses Karzai of large-scale
    election fraud" (Frankfurter Allgemeine), "EU mistrusts Karzai's
    victory" (Berliner Zeitung), "Afghan elections turn into farce" (FT
    Deutschland)

    Under the headline "Stolen election," Frankfurter Allgemeine
    commented: "It is disastrous that, according to the EU election
    observers, a quarter of the ballots cast in the Afghan elections
    were manipulated or are suspicious.  This raises the question
    whether the international community can still cooperate with
    President Karzai, apparently the main benefactor of the fraud.  This
    undermines the legitimacy of the Kabul government and its already
    weak authority throughout the country....  Is there an alternative
    to Karzai?  The Afghans themselves must make this decision without
    too much interference from outside.  However, this poses the risk of
    violent conflicts....  Instead of plunging the country into the
    turbulence and conflicts of an election campaign, we should have
    strengthened the rule of law and fight corruption."

    S|ddeutsche Zeitung carried a front-page photo showing women wearing
    burqas and holding a sign saying "reconciliation."  In an editorial
    under the headline "The Afghan disaster," the paper said: "America
    and Europe must make the decision whether to recognize Karzai as
    president at all."  The paper added: "Given the hopeless situation,
    it would be better to leave the decision to a Loya Jirga, which
    traditionally enjoys legitimacy in Afghanistan.  The representatives
    like to meet for a long time and that would put us in the middle of
    the Afghan winter.  This would have advantages: even the toughest
    Taliban turn into pacifists in the icy winter.  This would give
    decision-makers in Europe and the U.S. time to profoundly reconsider
    the war and democracy in Afghanistan."

    Tagesspiegel opined: "Nobody can believe four weeks after the
    election in Afghanistan that President Karzai has reached an
    absolute majority.  Is the winner clear?  Not at all.  A new
    battlefield is opening up in the country, which is divided more than
    any other country....  It must be seen as an affront against the
    West that the preliminary results were announced only hours after
    the massive fraud allegations.  Given the elections disaster, we
    might consider whether it would not have been better to put the
    elections at the end of the democratization process."

    Berliner Zeitung's editorial headlined "Annulling the elections _or
    civil war" and remarked: "This election must be annulled.  Such a
    decision would not move Afghanistan forward, but it would prevent it
    from experiencing a decade-long setback."

    BERLIN 00001148  002 OF 004

    Regional newspaper Der Neue Tag commented: "Despite all the praise
    he got in advance, President Karzai is increasingly a part of the
    problem and not part of the solution.  He does not have his country
    under control.  The administration, army, police forces and the
    courts are more corrupt than ever before.  It takes a lot of help to
    manipulate 1.5 to 5.5 million votes."

    ¶3.   (EU)   Barroso Election

    All papers carried reports and editorials on Barroso's re-election,
    with much of the commentary expressing doubt whether Barroso was the
    right choice.  ARD-TV's late evening newscast Tagesthemen commented:
    "The outcome of the election is clear, but we have not heard in
    Brussels and elsewhere that this was also a good choice.  During his
    first term, Jos Manuel Barroso did not acquire great respect.  Why
    then his re-election?  This is indeed the question.  The reason we
    hear almost everywhere including from Berlin is that there was no
    alternative.  Apart from the fact that this is a poor argument, it
    is also nonsense.  It is probably right that something else but
    Barroso was not desired.  Not only because it is much more
    comfortable for the big EU countries to have someone at the top in
    the EU who gives in readily to their requests.  And it is probably
    more important that the EU member states are governed by a
    generation of politicians whose European ambitions tend to be
    zero."

    Westdeutscher Rundfunk radio of Cologne broadcast the following
    commentary: "the past weeks demonstrated that Europe is witnessing a
    change in its political institutions.  The [European] Parliament has
    become stronger.  Basically, there should have been an election
    campaign with several candidates and not a just a concert of
    complaints about Barroso.  But this is something the parties only
    realized after his reelection. Very few people acknowledged
    regarding Barroso that his job requires more skill in reaching
    compromises than any position in the world except for the Secretary
    General of the United Nations, who has to find a common denominator
    for the policies of China, Russia, Europe, and the U.S.  Everyone
    who criticizes Barroso these days should answer the question of what
    Barroso could have done better [in his first term]."

    DeutschlandradioKultur opined: "The question now is whether Barroso
    will take advantage of his second term and whether he will really
    change his political style in a way he promised.  The chances are
    not bad.  Many previous presidents of the European Commission had a
    weak first term.  There is a simple reason for this: Commission
    presidents are allowed to run only two terms in a row.  Barroso can
    now enter into the many conflicts much freer than during his first
    term."

    In the view of Frankfurter Allgemeine, "No other previous European
    Commission president has presented such a comprehensive working
    program and was asked to make such far-reaching concessions.  But
    with this great variety of concessions, the old and the new
    president confirmed his reputation, namely that he does not pursue
    his own independent policy but rather changes his colors like a
    chameleon, saying whatever the EU leaders want to hear."

    According to Financial Times Deutschland, "the social democratic
    members of the European Parliament [EP] must also be blamed for the
    lack of competition about the best ideas and the most important
    position in Brussels.  They shied away from suggesting an
    alternative to Barroso.  In view of the conservative majority in the
    EP, it seemed hopeless to assert one's own candidate.  But the
    current legal situation must also be blamed for the situation
    because the European Parliament only plays a side role when
    determining the Commission President.  But this will change as soon
    as the Lisbon reform treaty will enter into force.  The EP will then
    gain in significance and a true competition will become possible."

    BERLIN 00001148  003 OF 004

    Handelsblatt editorialized: "The tasks that lie ahead of the next
    European Commission are enormous.  At issue is not only how to lead
    the EU in an orderly way out of the crisis.  This is a task for
    which Barroso, after his yearlong laissez-faire policy, seems to be
    ill-prepared.  At issue is also how to lead the EU on a new
    sustainable path of growth.  Both tasks will become extremely
    difficult because, during this crisis, the 27 EU member states have
    drifted apart.  There is hardly anything in common anymore between
    jeopardized countries such as Ireland and Latvia and recovering
    countries such as France and Germany.  Egotism and nationalism are
    on the advance.  At the same time, EU policies such as the Stability
    Pact and the Lisbon agenda for jobs and economic growth have turned
    out to be fragile.  Even the EU's internal market, the supportive
    pillar of a common economic policy, is suffering.  It is high time
    for a general overhaul of the EU."

    Regional daily Mannheimer Morgen observed: "As far as politics is
    concerned, Barroso is only a lightweight.  In the coming five years,
    the European Commission will have get an even less significance
    under his leadership.  He owes his re-election to the 27 EU leaders.
     He knows this and will act correspondingly.  That is why we should
    not expect an independent self-confident course from Barroso.  Those
    who think that he has a great selection of possible EU commissioners
    are wrong.  That is why the European Commission will fail as an
    engine of reform."

    ¶4.   (Economic)   U.S. Recession, Lehman Bros.

    Under the headline: "The Right Timing," Frankfurter Allgemeine
    judged: "The U.S. economy has finally left behind the worst of the
    recession and is again moderately growing.  Fed chief Ben Bernanke
    stated this.  He is right with his assessment that all obstacles for
    an economic recovery have not yet been removed.  There are still
    some burdens for the consumers and that is why Bernanke and some of
    his colleagues are not in a rush to end their relaxed monetary
    policy   Nevertheless, it is necessary to carefully prepare for a
    change of course to a stricter availability of money and not to miss
    the right timing.  The liquidity that was necessary to stabilize the
    financial system and the economy must be siphoned off in time.
    Otherwise consumer prices will inflate and new dangerous bubbles in
    the markets for assets such as stocks and real estate will be
    looming."

    Financial Times Deutschland headlined: Caught in a Bubble," and
    judged: "It may be possible that the largest economic areas have
    left behind the recession and are on their best way to recover.  But
    no one knows how strong the upswing will be and in order to justify
    the euphoria in the financial markets, this upswing must be
    gigantic.  If the stock markets continue to rise and, at the same
    time, the interest rates for securities go down, then this is a
    clear indication that too much money is in the markets.  In the
    financial markets, the next bubble is developing and the central
    banks should do everything to let the air slowly out of them.  But
    the Fed and the European Central Bank are in a dilemma.  If they now
    end the extremely expansive monetary policy of the past
    months...they would probably suffocate the fragile economic upswing.
     The central banks must resolve a basic problem: consumer prices are
    taking a completely different course than asset prices.  That is why
    the central banks should make up their mind as quickly as possible
    on how to deal with this situation.  And investors should assume
    that this new bubble will not grow forever."

    Regional daily Die Tagespost of W|rzburg opined: "The balance sheet
    one year after the bankruptcy of Lehman Bros. is not very promising.
     The decisive question has not yet been answered: will the G-20
    succeed in chaining the international finance world at the upcoming
    summit in Pittsburgh?  Everyone agreed that another fiasco can be
    prevented only if at all three levels - the international, the
    European, and the national level - rules are adopted that

    BERLIN 00001148  004 OF 004

    mercilessly tackle non-transparent financial products, greed, and
    excessive bonus payments for managers.  The market itself does not
    have sufficient self-healing forces.  This is for sure."

    ¶5.   (U.S.)   Issue of Race in America

    Commenting on former President Carter's statement that Rep. Wilson's
    outburst during a speech by President Barack Obama was "based on
    racism," Frankfurter Allgemeine wrote: "We are currently burying
    another hope many contemporaries associated with Obama: the end of
    the divide running through American politics and society.  The
    reform of the health care system is being fought with a
    vengeance....  However, [with his comment about Rep. Wilson] the
    former President is not exactly a model for a debating culture....
    In America accusations of racism can kill even legitimate
    criticism."

      MURPHY

`