Daily Archives: June 26, 2012

Mexico

The PRI also looks likely to sweep Mexico’s congressional elections on July 1

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The presidential race’s outcome may seem all but certain, but the race for Los Pinos has nonetheless received much more coverage than the legislative elections that take place on July 1 as well — and are just as vital to the comeback hopes for the Partido Revolucionario Institucional (PRI).

In addition to electing a president, Mexicans will elect 500 members to the lower chamber, the Cámara de Diputados, and 128 members to the upper chamber, the Senado.

If polls are accurate, not only will the PRI’s presidential candidate, Enrique Peña Nieto, win, but it will also win an absolute majority in the Cámara de Diputados — the first time that a party has won an absolute majority since electoral reforms in 1996, which would give Peña Nieto the best environment in over 15 years to pass legislation in Mexico.  A Mitofsky poll released yesterday shows that the PRI and its allies would win 44% of the Congressional vote to 29% for the PRD and its allies and 24.5% for the PAN.

Although the conservative Partido Acción Nacional (PAN) has controlled the presidency since 2000, first under Vicente Fox and then under Mexico’s incumbent president, Felipe Calderón, it never controlled an absolute majority of seats in the Cámara de Diputados and only from 2000-03 and from 2006-09 did it even hold the largest share of seats.  Given that dynamic, the PRI and the leftist Partido de la Revolución Democrática (PRD) have been able to unite in opposition to the PAN, frustrating the extent of Fox and Calderón to enact major reforms (although Calderón has passed minor tax reforms in 2005 and energy reforms in 2008).

Under the current rules, 300 deputies are elected on the basis of first-past-the-post plurality in single-member districts.  An additional 200 deputies are elected by proportional representation — each party that wins 2% is entitled to its share of seats.

No party, however, can win more than 300 seats in total — 200 seats must always be apportioned to opposition parties.  As most reforms in Mexico are “constitutional reforms” requiring a 2/3 supermajority, most major initiatives therefore require a broad base of support.  While that is of some assurance to those who are worried about the PRI’s authoritarian roots — Peña Nieto and the PRI won’t likely be able to push through legislation that would repress the gains of Mexican democracy — it also is the primary reason that Fox and Calderón have not accomplished any truly landmark legislative victories in the past 12 years.  Continue reading The PRI also looks likely to sweep Mexico’s congressional elections on July 1 →

Assorted Links

First Past the Post: June 26

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In Egypt, SCAF’s order reinstating parts of the ’emergency law’ to facilitate citizen detainment has been invalidated by an administrative court.

FT Alphaville gives us a lesson on the Indian rupee and on Oscar Wilde:

“Cecily, you will read your Political Economy in my absence. The chapter on the Fall of the Rupee you may omit. It is somewhat too sensational. Even these metallic problems have their melodramatic side.”

Ousted Paraguayan president Fernando Lugo is now mounting a challenge to his impeachment, as the Organization of American States starts to weigh its response.

An interview from allAfrica with Liberian president Ellen Johnson Sirleaf.

The PAN is declaring open war on “vulgar cheerleader” and “traitor” Vicente Fox.

Soros on Europe.

Serbia is still wrangling over forming a government.

Abdoulaye Wade is not fading away in Senegal.

Lots of folks are running for president of South Korea.

Beijing prepares for a transition in Hong Kong.

Iraqi prime minister Nouri al-Maliki is leaning autocrat these days.

 

Greece

Who is Yiannis Stournaras?

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After a rough start for Greece’s newly inaugurated center-right government — Greece’s new prime minister Antonis Samaras remains immobilized from an emergency eye surgery over the weekend and his first pick for finance minister (Vassilis Rapanos, the head of the National Bank of Greece) resigned after falling ill last Friday — it looks like Greece finally has a finance minister.

Samaras has appointed Yiannis Stournaras as the new finance minister, although Stournaras will not attend the European Union summit in Rome that kicks off Thursday.  Samaras will not be able to attend, nor will the party leaders of his two coalition partners, Evangelos Venizelos, the leader of the center-left PASOK and Fotis Kouvelis, the leader of the more anti-austerity Democratic Left.  Instead, Greek president Karolos Papoulias, will lead the Greek delegation.

Meanwhile, in another blow to the Samaras government, newly installed deputy shipping minister George Vernikos resigned Tuesday after opponents pointed to his use of offshore companies, which are often used by Greeks to avoid taxes.

Stournaras is a generally respected professor and economist — most recently, he has served as the general director of the influential Foundation for Economic and Industrial Research, a Greek economic think tank and as development minister in the caretaker government between the May 6 and June 17 elections.

He is most well-known for his role in designing economic policy in advance of Greece’s accession into the eurozone and is known in Greece as “Mr. Euro” — it’s certainly difficult to miss the symbolism in that.  Stournaras has also worked as special adviser to Greece’s finance ministry and the Bank of Greece in the 1980s and 1990s.

Reuters reports that the Stournaras appointment, although widely applauded, does not guarantee any quick solution for the Greek economy’s future:

He faces a difficult juggling act – pushing for more time and money from sceptical foreign lenders while coaxing reluctant officials at home to push through unpopular reforms.

“Stournaras is a serious, respected person who will inspire some confidence in the markets. But he is entering a bad government, where many old-style, spendthrift politicians are occupying key positions,” said political analyst John Loulis.

“He will have to wage a hard battle against them. He is entering the wolf’s lair and he won’t survive without the prime minister’s solid support.”

A troubling nugget comes from The Financial Times, whichreports that none other than PASOK leader Venizelos, also the former finance minister who negotiated Greece’s second bailout (that the government now hopes to renegotiate), just last week vetoed the reappointment of Stournaras as the permanent development minister.