09.10.11
Cablegate: Director of Microsoft Netherlands Thought an Honorary Doctorate to Bill Gates Would Appease the Competition Commissioner
Summary: Regulation against several companies including Microsoft and how Microsoft viewed the appointment of Neelie Kroes at the time
FROM the following “SENSITIVE” Cablegate cable we learn that, according Director of Microsoft Netherlands Michel van der Bel, “the company had had good relations with Kroes in the past, including the granting to Bill Gates of an honorary doctorate from Nyenrode University during Kroes’ tenure as President there.”
UNCLAS SECTION 01 OF 02 THE HAGUE 002040 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON [Economic Conditions], PREL [External Political Relations], PGOV [Internal Governmental Affairs], PINR [Intelligence], NL [Netherlands], EUN [European Union] SUBJECT: DUTCH CELEBRATE CAPTURE OF EU COMPETITION PORTFOLIO REF: THE HAGUE 01955 SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE ACCORDINGLY. ¶1. (SBU) SUMMARY. The Dutch are clearly satisfied and claiming victory over the appointment of Neelie Kroes-Smit (Kroes) as the new European Commissioner for Competition. Prime Minister Balkenende's strategy of holding out for a "heavy" portfolio appears to have paid off. Both the Netherlands' and Balkenende's image are likely to get a boost from this success. Kroes' reputation as a free-market and pro-Atlantic thinker could be a real plus for soothing tensions in the U.S.-EU relationship as well as opening a new era of dialogue between Brussels and big business operating in the EU. END SUMMARY. ¶2. (U) The Dutch press is hailing the appointment of former Transport Minister Neelie Kroes-Smit as the new European Commissioner for Competition as a real victory. All August 13 Dutch morning papers included front-page stories on the appointment of Kroes, who comes from an entrepreneurial Rotterdam family that founded a transport business in the Netherlands. (See reftel for further biographic information.) Most commentators acknowledged surprise but also satisfaction with new European Commission President Barroso's selection of Kroes for the prized job of regulating mergers and acquisitions within the European Union as well as state subsides. Spokespersons for all major political parties have praised Prime Minister Jan Peter Balkenende for his "subtle" negotiating strategy and success in winning for the Netherlands what Liberals (free-market,conservative VVD) Lower House Leader Jozias van Aartsen called a "dream portfolio for a dream candidate." (Kroes is a VVD member.) Christian Democratic (center right CDA) spokesperson Maxime Verhagen spoke of winning the "top prize." Even the main opposition Labor (PvdA) spokesperson Frans Timmmermans, who had previously questioned Kroes' nomination by Balkenende and predicted that she would receive a less important portfolio, conceded his mistake and complimented Balkenende's cabinet and Kroes on the nomination. ¶3. (U) Jacques Schraven, President of the influential VNO-NCW Employers organization also praised the "outstanding lobbying" of Balkenende, noting the importance of Kroes' position for establishing more "direct lines" for business and its boost for the Netherlands' image. Other reports describe Barroso's appointment of Kroes and others as giving a larger role to smaller member states within the EU, injecting new life into an "ailing European economy," and acknowledging the Netherlands position as the largest net contributor to the EU. Balkenende himself told the press that he was "very satisfied," describing Kroes' new job as a "core portfolio" in the Commission and her appointment as recognition of the key role the Netherlands has and will continue to play in the EU. In an August 12 press conference shortly after the announcement, Kroes pledged to maintain good contacts with The Hague while not becoming a "figurehead" for the GONL in Brussels. ¶4. (U) Former Belgian Commissioner for Competition Karel van Miert, who also previously held the Transport portfolio, publicly advised Kroes that the job's main challenge would be to maintain her independence while also proving her knowledge of business and her ability to judge issues objectively and coherently. Van Miert praised Kroes, who had served as an advisor to Miert in the early 1990s while he was Transport Commissioner, for her energy and strength, noting that her formidable negotiating skills would serve her well. He also implied that the anti-trust case against Microsoft, brought by outgoing Commissioner Mario Monti, could be a real test of her abilities, especially if the European Court of First Instance agrees to Microsoft's request to overturn Monti's decision. The Director of Microsoft Netherlands Michel van der Bel refused to comment to the press on the case, but noted that the company had had good relations with Kroes in the past, including the granting to Bill Gates of an honorary doctorate from Nyenrode University during Kroes' tenure as President there. (Kroes is also likely to inherit the task of reaching final settlement of the Commission's five-year anti-trust case with Coca-Cola.) COMMENT -- AT THE TOP IN BRUSSELS --------------------------------- ¶5. (SBU) Balkenende's August 3 nomination of Kroes as the Dutch candidate for European Commissioner was initially met with some skepticism among political circles as well as annoyance with current Dutch Internal Market Commissioner Frits Bolkenstein's decision not to opt for a second term. VVD leadership actually decided in June to put Kroes forward as a candidate and subsequently reached agreement among the three coalition parties VVD, CDA, and Liberal Democrats (center left D66) not to name a particular candidate until Balkenende was able to negotiate for a "heavy" portfolio. Kroes apparently was always the front-runner, although Agriculture Minister Cees Veerman was an alternative for the Agriculture portfolio in the event that Balkenende's strategy failed. Balkenende reportedly first raised the issue with Barroso during a Netherlands-Germany soccer match during the July European Championship in Portugal and the discussion continued during Netherlands-Portugal game. Barroso continued to ask Balkenende for a female candidate, while Balkenende maintained that such an option was only possible if the Netherlands received a "heavy" financial-economic portfolio. On Tuesday afternoon, August 3, Barroso made that promise by telephone, whereupon Balkenende announced the nomination of Kroes. ¶6. (SBU) Balkenende's strategy appears to have paid off. Both the Netherlands' and Balkenende's image, both domestically and internationally, are likely to gain from this success, which comes on the heels of the selection of Jaap de Hoop Scheffer for the prestigious NATO SYG post. Meanwhile, both domestic and international press are lauding Kroes as a free-market and pro-Atlantic thinker, whose occupancy of the "most important" EU Competition job could help to calm tensions in the U.S.-EU relationship and open an era of dialogue between Brussels and wary big business. END COMMENT. RUSSEL
For a little more about this theme, see the following cables:
- Cablegate: European Commission Worried About Microsoft’s Browser Ballot Screen Being Inappropriate
- Cablegate: Competition Commissioner Neelie Kroes Accused of “Undermin[ing] Support for Intellectual Property” in Microsoft Case
- Cablegate: Former Microsoft Lawyer Thomas Barnett and Majoras Butt Heads With EU Commission Over Microsoft Case
- Cablegate: US Government Assesses Value of New EU Commission to Itself
Cablegate helps those who study history. Next up we’ll look at some other themes. █
Needs Sunlight said,
September 10, 2011 at 10:59 am
What is the date of that memo?
Dr. Roy Schestowitz Reply:
September 10th, 2011 at 11:01 am
Some time in 2004.