

Currently released so far... 12453 / 251,287
Browse latest releases
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
2010/12/24
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
2011/01/10
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
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
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
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
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 Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
ASEC
AORC
AMGT
APER
AU
AF
AS
ACBAQ
AFGHANISTAN
AFIN
AR
AE
AJ
ADANA
AEMR
AG
ATRN
ADPM
APECO
AGAO
AMED
AX
AM
AL
ADCO
AA
AECL
AADP
ABUD
AMEX
ACAO
ANET
AODE
ASCH
AY
APEC
AID
AORG
ASEAN
AFSI
AFSN
AINF
AGR
AROC
AO
AMBASSADOR
AFFAIRS
ASIG
ABLD
ASUP
AND
ARM
ARF
AQ
ATFN
AC
ACOA
AORL
ADM
AUC
AGMT
ACABQ
ASEX
AFU
ALOW
AZ
APCS
AVERY
ASECKFRDCVISKIRFPHUMSMIGEG
AER
AN
AIT
AMG
AGRICULTURE
AMCHAMS
ACS
BR
BA
BD
BL
BO
BF
BU
BILAT
BEXP
BRUSSELS
BK
BN
BM
BT
BY
BX
BTIO
BIDEN
BG
BE
BP
BBSR
BC
BTIU
BWC
BB
BH
BMGT
CH
CY
CA
CU
CS
CO
CVIS
CPAS
CMGT
CE
COUNTER
CASC
COUNTRY
CJAN
COUNTERTERRORISM
CG
CI
CD
CIDA
CJUS
CDG
CBSA
CEUDA
CR
CM
CLMT
CAC
CBW
CODEL
COPUOS
CWC
CIC
CW
CBE
CHR
CFED
CT
CONS
CIA
CTM
CDC
CVR
CF
CLINTON
CITEL
CLEARANCE
COE
CN
CACS
CAN
CONDOLEEZZA
CB
CSW
CITT
CARSON
CNARC
CACM
CDB
CARICOM
COM
CROS
CAPC
CTR
CV
CKGR
CBC
CL
CICTE
CIS
ECON
EFIN
ELAB
ETRD
EIND
EC
EINV
EAGR
ENRG
ETTC
EAID
EPET
ELTN
EWWT
EAIR
EFIS
EMIN
EG
EU
ER
EUN
EPA
ENVI
EXTERNAL
ECPS
ENGR
ETRC
ECIN
EN
EI
ELN
ET
EINT
ETRDEINVTINTCS
ES
ETRDEINVECINPGOVCS
EZ
ETRO
EDU
ETRN
EFTA
EAIG
EK
EUREM
EURN
ECONCS
ECONOMICS
ENVR
ELECTIONS
EAP
ENIV
ECONOMY
ESA
EINN
ECONOMIC
EIAR
EXBS
ECA
ECUN
EINDETRD
EUR
EREL
EUC
ESENV
ECONEFIN
ECIP
ENERG
ENNP
EFINECONCS
EFIM
ENGY
EAIDS
EINVEFIN
EINVETC
EUMEM
ETRA
ETC
ERNG
ETRDECONWTOCS
EUNCH
ECINECONCS
EINVECONSENVCSJA
EXIM
ERD
EEPET
IR
IS
IZ
IAEA
IO
IAHRC
ID
IC
IT
IRAQI
IWC
IN
IL
ISLAMISTS
IV
ICAO
INDO
ITPHUM
ITPGOV
ITALIAN
IPR
ICRC
INTERPOL
IQ
IBET
IMO
INR
ITRA
INTERNAL
ICJ
ICTY
IRS
ILO
INRA
INRO
ISRAELI
IEA
INRB
ITALY
ITU
IBRD
IIP
ILC
INTELSAT
IZPREL
IMF
INMARSAT
IRAJ
IDA
ICTR
IA
IGAD
IF
IDP
ITF
ISRAEL
IEFIN
IRC
IACI
KN
KCRM
KOMC
KNNPMNUC
KIPR
KPAL
KWBG
KSCA
KFRD
KNNP
KUNR
KTIP
KWMN
KSTC
KFLU
KOLY
KISL
KPAO
KMDR
KJUS
KSTH
KDEM
KCOR
KIRF
KAWC
KU
KTFN
KWAC
KNPP
KERG
KSEO
KACT
KHLS
KZ
KGHG
KTIA
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCRCM
KE
KPKO
KCIP
KDRG
KVPR
KV
KIDE
KICC
KPRP
KBIO
KSUM
KGIT
KCFE
KG
KBTS
KFLO
KMPI
KS
KGIC
KPAI
KHSA
KTLA
KSEP
KTEX
KFSC
KOCI
KHDP
KPLS
KTDB
KHIV
KCSY
KSAC
KTRD
KID
KMRS
KOM
KSAF
KRVC
KR
KMOC
KNAR
KIRC
KBCT
KSPR
KFIN
KBTR
KJUST
KNEI
KAWK
KGCC
KMCA
KREL
KMFO
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KVRP
KCOM
KO
KLIG
KAID
KVIR
KNSD
KHUM
KSEC
KRAD
KPRV
KCMR
KPWR
KCHG
KIFR
KCFC
KICA
KPIN
KSCI
KESS
KDEV
KTBT
KCRS
KCGC
KOMS
KRIM
KTER
KREC
KPOA
KWWMN
KRGY
KPAK
KWNM
KMIG
KDDG
KRFD
KWMM
KWMNCS
KX
KRCM
KPAONZ
KNUC
KDEMAF
KNUP
MARR
MOPS
MASS
MCAP
MTCRE
MNUC
MIL
MX
MEDIA
MO
MPOS
MU
ML
MA
MP
MY
MERCOSUR
MG
MD
MW
MK
MAS
MEETINGS
MR
MT
MI
MOPPS
MASC
MTS
MLS
MILI
MAR
MTRE
MEPN
MAPP
MTCR
MEPI
MQADHAFI
MAPS
MARAD
MASSMNUC
MEPP
MCC
MZ
MILITARY
MDC
MRCRE
MC
MV
MIK
MUCN
NATO
NL
NZ
NPT
NI
NAFTA
NU
NDP
NIPP
NP
NPA
NG
NRR
NO
NSC
NEW
NE
NH
NR
NA
NS
NSF
NZUS
NATIONAL
NSG
NC
NT
NAR
NK
NGO
NV
NSFO
NSSP
NASA
NW
NPG
NORAD
NATOPREL
OTRA
OAS
OPRC
OIIP
OVIP
OREP
OPDC
OEXC
OSCE
OFFICIALS
OMIG
ODIP
OFDP
OECD
OPIC
OBSP
OPCW
OFDA
OTR
OSAC
OSCI
ON
OCII
OES
OVP
OIC
OPAD
OIE
OHUM
OCS
PREL
PGOV
PK
PHUM
PINS
PARM
PA
PTER
PINR
PREF
PHSA
PBTS
PBIO
PO
POL
PE
PARMS
PM
PROG
PL
PAK
POLITICS
PORG
PTBS
PNAT
PUNE
POLICY
PDOV
PCI
PROP
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PAO
PG
PY
PTERE
PGOF
PALESTINIAN
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PSEPC
PREFA
PGOVE
PINF
PHUMPGOV
PNG
PMIL
PGOC
PFOR
PCUL
PLN
PSA
PGIV
POLINT
PAS
POGOV
PHUMPREL
PHUMBA
PEL
PGGV
PNR
PHALANAGE
PARTY
PGOVLO
PRAM
PHUS
PDEM
PECON
PF
POV
PROV
PRL
PREO
PAHO
PHUH
PSI
PINL
PU
PRGOV
PAIGH
POLITICAL
PARTIES
POSTS
RS
RU
REACTION
REPORT
REGION
RIGHTS
RO
RW
RCMP
RF
RM
RFE
RSP
RP
RICE
ROBERT
ROOD
RELATIONS
RIGHTSPOLMIL
RUPREL
RSO
SU
SNAR
SO
SOCI
SW
SENV
SMIG
SCUL
SP
SZ
SENVKGHG
SR
SY
SA
SYRIA
SF
SI
SC
SWE
SARS
STEINBERG
SN
SG
SIPRS
ST
SEVN
SL
SPCE
SNARIZ
SSA
SNARCS
SYR
SK
SPCVIS
SHUM
SIPDIS
SHI
SH
SOFA
SEN
SNARN
SAARC
SAN
SANC
SCRS
TRGY
TBIO
TU
TF
TERRORISM
TI
TSPL
TPHY
TH
TIP
TSPA
TC
TO
TW
TX
TZ
TNGD
TT
TL
TV
TFIN
TS
TRSY
TINT
TN
TURKEY
TBID
TD
TK
TR
THPY
TP
TAGS
UNGA
UN
UK
US
UNC
UNSC
USUN
UG
UP
UY
USEU
UNESCO
USPS
USTR
UZ
UNHRC
UNO
UNMIK
UNAUS
UNHCR
UNCHR
USAID
UNVIE
UAE
USOAS
UNFICYP
UV
UNEP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNDC
UNCHC
UNDP
UNCND
USNC
UNPUOS
UNICEF
UNCSD
UE
Browse by classification
Community resources
courage is contagious
Viewing cable 09REYKJAVIK90, ICELAND: NEW GOVERNMENT PUNTS ON EU QUESTION, PLEDGES A
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.
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. #09REYKJAVIK90.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09REYKJAVIK90 | 2009-05-13 13:01 | 2011-01-13 05:05 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Reykjavik |
VZCZCXRO3262
OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHRK #0090/01 1331319
ZNR UUUUU ZZH
O 131319Z MAY 09
FM AMEMBASSY REYKJAVIK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4070
INFO RHEHNSC/NSC WASHINGTON DC IMMEDIATE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 03 REYKJAVIK 000090
SIPDIS
SENSITIVE
STATE FOR EUR DAS GARBER, EUR/NB, INR/B
NSC FOR HOVENIER
E.O. 12958: N/A
TAGS: PGOV PREL PINR EUN IC
SUBJECT: ICELAND: NEW GOVERNMENT PUNTS ON EU QUESTION, PLEDGES A
"NORDIC SOCIAL WELFARE" STATE
Ref: Reykjavik 81
¶1. (SBU) Summary: Iceland's new leftist government announced its
policy statement on May 12, confirming what many expected to be a
move towards "traditional" Nordic social and economic policy. Taxes
and other revenue streams will need to be increased to meet the
government's goal of reduced deficits and a balanced budget by 2013.
The Social-Democratic and Left-Green coalition referred perhaps its
most pressing issue -- whether or not to apply for EU membership --
to the parliament, in what many here see as a concession to deep LG
misgivings. The Prime Minister's Social Democratic party may win
the vote on EU talks, but will likely need opposition support to do
so. On other foreign policy fronts, the turn towards Nordic
cooperation is confirmed, and the U.S. is no longer explicitly noted
as Iceland's leading ally in security. As with other budget cuts,
the coming battle over defense spending is likely to be bitter. End
Summary.
¶2. (SBU) On May 12, the Social Democratic Alliance (SDA) and the
Left-Green Movement (LG) announced the composition and policy
statement for their new government formed after the April 25
elections (reftel). It confirms expectations of a sharp left turn
in government policy and states that it intends to be a "Nordic
welfare government in the truest sense of the word". The new
government presented its policy statement as well as a 100-day plan.
A resolution authorizing the government to begin EU membership
talks will be presented in the upcoming summer session of the
Althingi which begins this coming Friday, May 15. SDA figures and
political commentators tell Post that the summer session will likely
run for six weeks before adjourning for summer holidays and
reconvening in late September/early October.
ECONOMY: BALANCED BUDGET, BUT HOW?
----------------------------------
¶3. (U) On the economy, there are not a lot of specifics other than
statements about the "tough work ahead" in the 17-page coalition
policy agreement. The new government coalition says it wants to
ensure economic and social stability, and to seek national unity on
Iceland's path to reconstruction through a new "stability pact." PM
Sigurdardottir said at the government's first press conference that
the government would begin meeting with labor unions and industry
leaders to seek broad national consensus on wage cuts and other
measures to minimize further job losses. Initial efforts at budget
cutting will be announced during the summer, and the government has
said initial guidelines on tax hikes and other revenue-boosting
measures will be unveiled during the week of May 18. This is in
keeping with the government's stated plan to achieve a balanced
budget by 2013. The preference (particularly among the Left-Greens)
is to raise taxes, with the government implying that it will target
the upper end of the socioeconomic spectrum. Press reports from the
first government cabinet meeting on May 12 indicate that income
taxes may not be raised immediately, though other taxes on consumers
and industry are possible avenues. The new Minister of Fisheries
has already floated the idea of an export tax on unprocessed fish,
both as a revenue stream and as a way of encouraging domestic job
creation in fish processing.
¶4. (U) Other policy goals (and an effort to hold expectations at a
manageable level) are hinted at by sentiments in the policy
statement press release: "Guided by the values of equality, social
justice, solidarity, sustainable development, gender equality, moral
reform and democracy in Iceland, the government aims at creating a
Nordic welfare society in Iceland, where collective interests take
precedence over particular interests..." "Foremost among its tasks
is to revive confidence in the domestic community and rebuild
Iceland's international reputation...." The government maintains
that if its economic and fiscal plans are successfully implemented,
there is a good possibility of acceptable economic growth, low
inflation, a stable currency and lower unemployment by the end of
its term.
FOREIGN POLICY: LOOKING HOPEFULLY TO THE NORDICS
--------------------------------------------- ---
¶5. (U) The government's policy statement says little about non-EU
foreign affairs, apart from a focus on "collective international
security." Defense and security policy -- including the existence
and responsibilities of the Icelandic Defense Agency -- will be
subject to further review. Defense Agency officials tell us that
they have already been told to examine opportunities for cost-saving
by combining functions or assets with other government institutions,
such as the Coast Guard. Based on comments by Foreign Minister
Skarphedinsson earlier this year, this may move rapidly from the
exploratory phase into implementation. Also on defense, for the
REYKJAVIK 00000090 002 OF 003
first time in decades, the government's stated policy does not
mention cooperation with the U.S. as a cornerstone of Iceland's
security policy, but instead refers to "allied nations" more
generally. The new government states it will strengthen ties with
the Palestinian Authority government and will work to promote peace
and nuclear disarmament. The government also states its intent to
declaring Iceland a nuclear-free zone. (Note: An LG- and
SDA-sponsored bill that would have done this did not get out of
committee during the spring parliamentary session. End Note.)
EU MEMBERSHIP: DID THE SOCIAL DEMOCRATS PUNT?
---------------------------------------------
¶6. (SBU) On the EU, the SDA appears to have been pushed back from
what initially looked like a very strong negotiating position.
Foreign Minister Ossur Skarphedinsson will submit a parliamentary
resolution on Iceland's application for EU membership to the
Althingi sometime shortly after the new parliament convenes on
Friday, May 15. Both parties say their MPs will be free to vote
their consciences and not be bound by party strictures on the
resolution. PM Sigurdardottir emphasized the need for Iceland to
submit the application for membership no later than in July (in
part, many believe, to take full advantage of what Iceland hopes
will be a charitable view by the Swedish EU Presidency). She said
that she is confident that the parliamentary resolution will be
approved. Critics of this approach have said that if the resolution
is voted down, then it could spell the end of the coalition.
Left-Green Chair Sigfusson said his party's MPs will be free to vote
their consciences on the resolution. However, five LG MPs have
already said they will vote against the resolution. Even if all
other LG MPs vote for the resolution -- and some are hinting they
may abstain -- the LG "no" votes would mean the SDA will need to
recruit some opposition votes in order to reach a majority of 32.
Opposition leaders, for their part, have expressed considerable
reservation about giving what they say would be a "blank check" to
the SDA to handle EU membership talks.
¶7. (SBU) Several EU Ambassadors in Reykjavik have already noted to
post their surprise and concern over the plan to refer the
membership question to the Althingi. As one put it, the SDA's need
for opposition support raises the question of "how many pounds of
flesh" Sigurdardottir will have to pay out to get the resolution
through. Should there be too many concessions to opposition party
redlines (e.g., on fisheries, fast-track accession to monetary
union, or agriculture), the result could be a membership application
that even the Swedes will not be able to support. On the other
hand, a defeat would be a devastating loss on the SDA's signature
issue from the election campaign and a bad start for the new
government.
WHO'S WHO: STABILITY, SURPRISINGLY
----------------------------------
¶8. (U) Prime Minister Johanna Sigurdardottir (SDA Chair) and
Finance Minister Steingrimur Sigfusson (Left-Green Chair) retain
their current positions, as does Foreign Minister Ossur
Skarphedinsson (SDA). Sigfusson and Skarphedinsson have, however,
each dropped a ministry, with the LG's Jon Bjarnason picking up the
Fisheries and Agriculture portfolio and SDA rising star Katrin
Juliusdottir heading over to run the Ministry of Industry. Also of
note, the two non-political ministers -- the Minister of Justice and
the Minister of Economy (formerly known as Business Affairs) -- will
stay on. The coalition policy agreement also states plans to
re-organize the ministries to have one "Ministry of Employment" to
oversee Fisheries, Agriculture, and Industry. This will be
implemented in 2010 at the earliest. There is also the potential
for a reorganization of other ministries, including the amalgamation
of the Ministries of Justice and Communications into a single
Ministry of the Interior. PM Sigurdardottir has said she hopes to
reduce the total number of ministries to nine by the end of 2010.
The government's 12 cabinet ministers are as follows:
-Prime Minister: Johanna Sigurdardottir (SDA)
-Minister for Foreign Affairs: Ossur Skarphedinsson (SDA)
-Minister of Finance: Steingrimur J. Sigfusson (LG)
-Minister of Health: Ogmundur Jonasson (LG)
-Minister of Justice and Ecclesiastical Affairs: Ragna Arnadottir
(non-party affiliated; MOJ Civil Servant, previously Director of MOJ
Office of Legal Policy)
-Minister of Economic Affairs: Gylfi Magnusson (non-party
affiliated; Associate Professor in Economics at University of
Iceland)
-Minister of Industry: Katrin Juliusdottir (SDA)
-Minister of Education, Science and Culture and Minister for Nordic
REYKJAVIK 00000090 003 OF 003
Cooperation: Katrin Jakobsdottir (LG)
-Minister of Social Affairs and Social Security: Arni Pall Arnason
(SDA)
-Minister of Communications: Kristjan Moller (SDA)
-Minister of Fisheries and Agriculture: Jon Bjarnason (LG)
-Minister for the Environment: Svandis Svavarsdottir (LG)
¶9. (SBU) Comment: The biggest surprise from the new coalition
agreement is by far the decision to refer EU membership to a
parliamentary vote. This is a high-stakes gamble for
Sigurdardottir. A win with opposition support gives her a strong
hand in leading Iceland towards Brussels and considerable leverage
over her Left-Green coalition partners. However, a loss -- and
despite the PM's optimistic statements, this is not something we can
rule out -- would be a tough blow on the SDA's signature issue from
the campaign and would embolden the opposition considerably.
Further, as other diplomats here have noted, even a resolution
approving the start of talks with the EU may be a poisoned chalice
should it be overly loaded with preconditions and caveats.
¶10. (SBU) Comment, cont'd: On defense and security, one thing is
certain -- there will be blood on the floor when the government's
new budget comes out. Some here have taken to joking that the
Icelandic Defense Agency spends most of its time defending itself
from its own government. Depending on how any consolidation with
the Coast Guard plays out, this could be proven very true. End
Comment.
KLOPFENSTEIN