Daily Archives: June 1, 2012

Greece

Tsipras outlines SYRIZA program, as Samaras shifts tone toward bailout renegotiation

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Alexis Tsipras laid out his party’s program for the upcoming June 17 Greek election on Friday.

Tsipras said a SYRIZA government would immediately reject the memorandum on coming to power and ask for Greece’s debt to be restructured or for a moratorium on repayments. It would then repeal a reduction to the minimum wage and extend unemployment benefit to two years. It would also repeal recent labor market reforms limiting collective contracts.

Tsipras set out how his government would stabilize the economy. He said public spending would be set at between 43 and 46 percent of GDP, rather than under 36 percent as agreed in the memorandum. The SYRIZA leader said he would raise revenues by cutting down on tax evasion, waste and corruption and forming an assets register for all Greeks at home and abroad. The wealthy would pay more under a new tax system, he said.

The key takeaway point is that it is not substantively different from the program under which he led SYRIZA, the Coalition of the Radical Left (Συνασπισμός Ριζοσπαστικής Αριστεράς) in the previous May elections.

It does, however, highlight a subtle but unmistakable shift in the tone of Tsipras’s main rival, Antonis Samaras, the leader of New Democracy (Νέα Δημοκρατία), the center-right pro-bailout party that finished first in the May election.  Samaras in recent days has increasingly been taking a softer line on renegotiating Greece’s austerity program with the European Commission, the European Central Bank and the International Monetary Fund, all of which granted two bailouts to Greece in exchange for its adoption of austerity measures and labor market reforms.

Although Samaras has raged throughout both campaigns that a SYRIZA win would be catastrophic and lead to Greece’s exit from the eurozone, it’s clear that in the second campaign, ND and the pro-bailout PASOK (Panhellenic Socialist Movement — Πανελλήνιο Σοσιαλιστικό Κίνημα) are moving toward SYRIZA’s position.   Continue reading Tsipras outlines SYRIZA program, as Samaras shifts tone toward bailout renegotiation →

China, Hong Kong

Tsang apologizes, pledges to implement anti-corruption reforms in Hong Kong

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Outgoing chief executive Donald Tsang apologized on Friday to Hong Kong residents one day after two damning reports criticized Tsang for accepting luxurious gifts and favors from business tycoons and misuse of public funds — the report of one three-month inquiry, established by Tsang himself amid impeachment calls in March, found his conduct “totally inappropriate”:

“Because I handled matters improperly, public confidence in Hong Kong’s government as a clean government was shaken and our colleagues in the civil service were disappointed,” he said, bowing his head and looking on the verge of tears. “Here I sincerely apologise once again.”

The disclosure that Tsang had accepted favors from Hong Kong businessmen, including travel of yachts and private jets, special deals for rent on a penthouse in Shenzhen, and other gifts, rocked Hong Kong at the height of the campaign to replace Tsang, who had previously enjoyed a sterling reputation for probity, first as a civil servant for over three decades and as chief executive since 2005.

In another instance, Tsang was discovered to have spent public money for a $6,900 per night suite on a visit to Brazil.

One report recommended making it a criminal offense for the chief executive to accept certain favors without special permission:

[Former chief justice Andrew Li Kwow-nang] recommended that legislation be enacted so that accepting advantages required the permission of a statutory independent panel, which consists of three members, including a chairman, to be appointed jointly by the chief justice and the president of the Legislative Council.

The committee also suggested that the chief executive and his spouse can receive gifts valued below HK$400; gifts valued between HK$400 and HK$1,000 – if the gifts are inscribed with the chief executive’s or his spouse’s names; and invitations to functions or performances worth up to HK$2,000.

The scandal only amplified other charges of sleaze and corruption surrounding Henry Tang, who lost the chief executive election to Leung Chun-ying on March 25 when it became increasingly clear that both the Hong Kong public and the Chinese leadership in Beijing preferred Leung.  Although the 1200-member Election Committee were the only ones with votes in the election, Hong Kong residents made their voices heard loudly during the campaign.  It is expected that Hong Kong will hold its first openly democratic chief executive race in 2017.

Tsang will step down on June 30, but said he would work with his successor to craft anti-corruption legislation, which would be an unprecedented step for Hong Kong as it prepares to open the door to full democracy.

Such legislation will rise to the top of Leung’s agenda, which also includes increasingly high housing prices for Hong Kong residents, the strains placed on Hong Kong’s health, housing and other public services by migrants from mainland China and Article 23, a long-controversial anti-subversion law.

Assorted Links

First Past the Post: June 1

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A stripper, a porn star, the Church of Blessed Consumerism and other screwball French legislative candidates.

Tyler Cowen on the economic future of Italy, Greece and the eurozone.

Ahn Cheol-soo is moving closer toward running in South Korea’s December presidential election. No word on whether his Angry Birds-themed commentary will return.

Spain is leaking capital in what has become the Rajoy government’s first (and perhaps largest) test.

Violence in Kosovo might be the Nikolić presidency’s first test in Serbia.

The latest round of talks on tuition have collapsed in Quebec.

 

Ireland

Ireland votes ‘yes’ to fiscal compact in referendum

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The count is underway, but it looks certain that the fiscal compact will pass yesterday’s Irish referendum — by around a 60-40 margin:

According to results received at the central count centre in Dublin Castle to date, 57.6 per cent voted Yes, while 42.4 per cent voted No, when spoiled or invalid votes are excluded. Turnout is in the region of 50 per cent.

Of the 15 constituencies to submit full results, 12 have recorded a Yes vote. Full constituency-by-constituency results are available here.

Earlier this week, I looked at some of the reasons why Irish voters seemed more inclined to accept this treaty on the first vote, after rejecting the Treaty of Nice in 2001 and the Lisbon Treaty in 2008: in no insignificant terms, a ‘no’ vote would have perhaps caused international investors to flee Ireland and maybe has caused Ireland to be unable to access the European Stability Mechanism.  Also, given that the treaty need not be unanimously ratified, Ireland would have had no ability to reject the treaty in favor of additional concessions from Brussels.
At a time when anti-austerity forces are gathering momentum across Europe, the treaty vote in the tiny country, hamstrung by a European bailout, is not going to stem that momentum.  But it is a significant victory for the mainstream Irish political parties (who have finally won a pro-EU vote for the first time since 1997) and for Irish Taoiseach Enda Kenny and his government: the message Irish voters are sending today, both to European leaders and the markets seems to be, “Not to worry, Ireland’s not Greece.”
It is a defeat for Gerry Adams and Sinn Féin — Adams’s vocal opposition to the treaty did not convince Irish voters in the face of such strong arguments (some might say blackmail) from the markets and from mainstream politicians.