Despite budget deal, Sweden must address immigration woes

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There are two ways of looking at Sweden’s approach to immigration policy.Sweden

Under one view, the country’s generous asylum policy, with respect to Bosnia and Herzegovina in the 1990s as much as Syria today, isn’t just a human rights cause. It’s also an opportunity to buttress Sweden’s much-vaunted welfare system as birth rates decline and its population becomes older. The creation of a well-integrated, highly-skilled, prosperous and genuinely happy class of ‘New Swedes’ could one day provide a template for 21st century liberal  European (and Scandinavian) values.

Under another view, the country’s increasing immigrant population is becoming ever more isolated from mainstream social and economic networks. That, in turn, has created a quasi-permanent tier of second-class immigrants without the tools or the social capital to rise to prosperity within Swedish society, and that’s weakening a welfare system already under demographic strain. At worst, it is engendering resentment among Sweden’s new immigrants and potentially, a turn to radical Islam, thereby threatening Sweden’s liberal values. Even for Syrian professionals who now live in Sweden, securing housing, employment and a sense of normalcy often prove elusive.

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RELATED: Löfven not to blame for probable early Swedish elections

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Having secured a budget deal for 2015 (and, theoretically, through 2022) between his center-left government and the center-right opposition, the four-party Alliance, Swedish prime minister Stefan Löfven will narrowly avoid a snap election in March that could have strengthened the third force of Swedish politics, the anti-immigration Sverigedemokraterna (SD, Sweden Democrats), which won 12.9% of the vote in last September’s general election and 49 seats in the Riksdag, Sweden’s unicameral parliament.

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Before Löfven struck the budget deal, polls showed that the Sweden Democrats could win as much as 17.5% in fresh elections, and that’s even while its charismatic, young leader Jimmie Åkesson was still officially on leave, due to exhaustion following the September vote.

Under the terms of the deal, the so-called ‘December Agreement,’ Löfven agreed to adopt the center-right’s proposed budget for 2015, though the Alliance agreed not to reject his government’s budgets in future years. The two blocs will also cooperate on a range of issues from defense and security policy to energy policy. It pushes Sweden one step closer toward a ‘grand coalition’ government, leaving both the Sweden Democrats and the the far-left Vänsterpartiet (Left Party) in opposition to the agreement. Continue reading Despite budget deal, Sweden must address immigration woes

What to expect from Greece’s January 25 snap elections

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With the failure of Greece’s parliament to elect a president after a third and final vote this morning, prime minister Antonis Samaras will dissolve the parliament and schedule early elections — most likely on January 25.Greece Flag Icon

It will be the first election since June 2012, when Samaras’s center-right New Democracy (Νέα Δημοκρατία) narrowly defeated the hard-left SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς). According to just about every poll, SYRIZA holds a lead of between 3% and 7% against New Democracy.

Expect a tough Samaras-Tsipras fight for first place

Samaras is a wily and seasoned campaigner, and he will undoubtedly cast himself as the guardian of Greece’s long-term stability. On Monday morning, he was lashing out at ‘political terrorism,’ and warning that a SYRIZA victory would allow Greece’s sacrifices to go to waste. SYRIZA will face sustained criticism — some justified, some overblown — from just about every quarter in Europe that it and its leader, Alexis Tspiras, are dangerous ideologues whose policies could force Greece out of the eurozone in 2015. Already, publications like The Guardian are referring to Greece being ‘plunged into crisis.’ Expect the fear-mongering about the consequences of a SYRIZA victory to be on par with efforts by the British political establishment and business community in the fraught week leading up to the Scottish independence referendum. It’s by no means certain that SYRIZA’s narrow single-digit lead will survive that kind of onslaught.

The fight between SYRIZA and New Democracy is so important because the first-place finisher in the election will not only win the largest share of seats in the 300-member Hellenic Parliament (Βουλή των Ελλήνων), but also a 50-seat ‘bonus’ meant to provide the winning party with enough seats to form a working majority government. Over the next few days, it will be worth watching to see whether SYRIZA or New Democracy convince any other smaller parties to merge, because the marginal value of even a one-vote victory in Greek elections is so consequential.

Since 2012, Greek economic conditions are slightly improved. Greece’s GDP is set to grow by between 1.0% and 1.4% in 2014, following six consecutive years of contraction, and there’s every reason to believe it will continue to expand in 2015. The government even attempted a reasonably successful bond sale in April, and Greece’s staggering unemployment rate is now just 25.7%, down from its high of 28%.

Nevertheless, the dual cuts of budget austerity and economic depression have, understandably perhaps, left the Greek electorate weary of renewing a mandate for austerity, and the uncertainty over the country’s political future has pushed 10-year bond yields to an unsustainable 8.5%.

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Greece’s ‘bailout’ questions remain unsolved

Fueling that uncertainty is Greece’s planned exit from its bailout program in February 2015, just days after the election.

Continue reading What to expect from Greece’s January 25 snap elections