Tag Archives: coalition

The Netherlands

VVD and Labour to form new ‘purple’ coalition for Dutch government

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With lightning speed (as far as coalition-building goes in the Netherlands), the two top finishers in the Sept. 12 Dutch election have formed a government that will seek €16 billion in budget cuts to bring the Dutch budget further into balance. 

Standing in front of a futuristic poster of a bridge, prime minister Mark Rutte (pictured above, right), the leader of the center-right Volkspartij voor Vrijheid en Democratie (VVD, the People’s Party for Freedom and Democracy) and Diederik Samsom (pictured above, left), leader of the social democratic Partij van de Arbeid (PvdA, Labour Party) announced that they will form the next governing coalition together.

The two parties finished first and second, respectively, in September’s election, far outpacing the other Dutch parties.

Throughout much of the campaign, the more leftist Socialistische Partij (SP, the Socialist Party) led polls, only for Labour to emerge in the last two weeks of the campaign, as Socialist leader Emile Roemer seemed to stumble in various television debates and Samsom emerged as a credible alternative — more pro-Europe and less stridently leftist yet still more skeptical of budget cuts.

Ultimately, the VVD won 41 seats and Labour won 38 seats — an increase for both parties.  The Socialists won just 15 seats, a far cry from polls just two weeks prior to the election that showed them winning upwards of 3o or 35 seats.  In switching from the Socialists to Labour, a huge chunk of Dutch voters have essentially moved the country from an outright anti-austerity coalition to a more stable, more centrist coalition — in fact, a return to the tradition of ‘purple cabinets’ of the past that included the VVD and Labour, most recently from 1994 to 2002 under various governments led by Labour prime minister Wim Kok.

The reported terms of the coalition agreement make clear that, essentially, the Rutte II government will continue to pursue vigorous austerity measures designed to bring the Dutch budget within 3% of GDP, despite Samsom’s opposition to budget cuts earlier in the spring and his vigorous opposition to Rutte throughout the campaign.  So in joining a government with Rutte, Samsom and Labour will leave the Socialists as the major anti-austerity opposition on the Dutch left.

So how exactly will the Rutte II government differ from its predecessor? And what did Labour win in exchange for its support for a fairly pro-austerity agenda?

Continue reading VVD and Labour to form new ‘purple’ coalition for Dutch government →

Greece

Greek government, troika reach agreement on Greek bailout

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It seems all but done — Greece’s government and the ‘troika’ of the International Monetary Fund, the European Central Bank and the European Commission have reached an agreement on the latest disbursement of funds that Greece needs to finance government operations, in exchange for a series of budget cuts and labor market reforms. 

In an additional twist, there are quasi-official reports from both Germany and Greece that the bailout program will be extended from the end of 2014 to the end of 2016, which will give Greece until at least 2016 to whittle down its budget deficit to the 3% required under EU rules, though it seems unlikely that Greece’s budget will be anywhere near to closing in on that target by even 2016.

The details are essentially as described over the past four months — €13.5 billion in budget cuts over the next two years, €9 billion of which will take effect in 2013.  The bottom line for Greek finances is that a Greek exit from the eurozone, which seemed virtually inevitable through much of 2012, has now been delayed, and delayed for a significant amount of time (Citi, for example, lowered its odds of a ‘Grexit’ to 60%, and predict it could still happen, but only in the first half of 2014).

That’s a significant victory for Greece’s prime minister, in office for barely four months, Antonis Samaris (pictured above, right, with Euro Group president and Luxembourg prime minister Jean–Claude Juncker), and it will now give him some breathing space to turn to Greece’s economic depression.

For me, there are three notable political aspects to the deal worth noting:  Continue reading Greek government, troika reach agreement on Greek bailout →

Australia

About that 15-minute speech on misogyny by Australian PM Julia Gillard

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New York tabloid blog Jezebel has officially awarded Australian prime minister Julia Gillard the title of ‘badass motherfucker,’ after Gillard spent 15 minutes in Australia’s House of Representatives on Tuesday calling out Coalition leader Tony Abbott for misogyny in the wake of a scandal that saw the House speaker resign after admitting to using inappropriate language about women in text messages. 

It’s really the most amazing video out of Australian politics since someone uploaded that ‘Happy Vegemite’ video of former prime minister Kevin Rudd going ballistic.

It’s playing to rave reviews around the English-speaking world — and that’s rare for anything in Australian politics.  Australia is one of the rare countries to have a parliamentary system, but two-party politics.  Gillard, whose Labor party was elected under Rudd in 2007, became prime minister in 2010 after an internal revolt over Rudd’s temperament led to Rudd’s resignation.  Abbott heads the Coalition, which since 1922, has been a coalition of a number of center-right Australian parties, most notably the Liberal and National parties.  Interestingly, Gillard remains more unpopular than Rudd and Abbott remains much less popular than former Coalition leader Malcolm Turnbull.

What’s most interesting is the distinction between how the speech played in Australia and how it’s playing for a global audience, though.  Much of the U.S. and British media commentary is universally glowing — The New Yorker even said Democratic U.S. president Barack Obama, who is widely seen to have turned in a subdued performance in last week’s U.S. presidential debate against Republican Mitt Romney could take some tips from Gillard.  But back in Australia, where Gillard is treading water after finally putting to rest (only temporarily, I assure you) an internal struggle with Rudd earlier in February, in advance of federal elections expected later in 2013, it played to decidedly mixed reviews:

Julia Gillard confronted a stark choice yesterday – the political defence of her parliamentary numbers, or the defence of the principle of respect for women.

She chose to defend her numbers. She chose power over principle. It was the wrong choice. It was an unprincipled decision and turned out not to be pragmatic either. The Prime Minister gained nothing and lost a great deal.

Some of the choice quotes:

And then of course, I was offended too by the sexism, by the misogyny of the Leader of the Opposition catcalling across this table at me as I sit here as Prime Minister, “If the Prime Minister wants to, politically speaking, make an honest woman of herself…”, something that would never have been said to any man sitting in this chair. I was offended when the Leader of the Opposition went outside in the front of Parliament and stood next to a sign that said “Ditch the witch.” Continue reading About that 15-minute speech on misogyny by Australian PM Julia Gillard →

United Kingdom

Labour leads, as Clegg and the Lib Dems struggle during UK convention season

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As conference season gets underway in the United Kingdom, the Labour Party, under relatively new leader Ed Miliband, now leads the Conservative Party by a 41% to 31% advantage in the latest Guardian/ICM poll, with the Liberal Democrats trailing at 14%.

Labour, which performed generally better than expected in the last election in May 2010 (which was supposed to have been a complete landslide for the Tories), hold 254 seats in the House of Commons to 304 seats for the Tories and 57 seats for the Lib Dems.  Although the next election is not expected until 2015, and the current Tory-Lib Dem coalition shows no signs of fracturing, despite some strains, Labour would be set to return to government.  That’s the best poll performance for Labour since well before the era of former prime minister Gordon Brown.

The support comes largely from the drop in support for the Lib Dems, who won 22% in the 2010 election and have watched support crumble as the junior partner of UK prime minister David Cameron’s government.  Just last week, Lib Dem leader and deputy prime minister Nick Clegg (pictured above) recorded an apology for violating its 2010 pledge not to raise tuition fees — the Tory/Lib Dem coalition has voted to lift the cap on tuition fees to £9,000.

The move, which came in advance of this week’s annual Lib Dem conference, has dominated political discussion — Clegg’s video has even gone viral:

As we approach the expected 2015 election, if Lib Dem support remains subdued, the calls for a new leader will only become louder.  This week’s favorite is Vince Cable, who has been the business secretary in the coalition cabinet since 2010.  That’s perhaps ironic, given that Cable is just as pregnant with support for the central Tory program of budget cuts as Clegg.  Nonetheless, the Guardian/ICM poll showed that the Cable-led Lib Dems would increase their support to 19% from 14%.

Throughout the conference, Cable and Clegg have both emphasized that the Lib Dems will run in the next election as a separate party, not jointly with the Tories or in favor of any particular coalition.

All things considered, today’s polls are of limited utility nearly 30 months before the next election.  Furthermore, I still think — despite a strong performance by shadow chancellor Ed Balls and an increasingly sure footing for Ed Miliband — that the polls are a reflection less of Miliband’s stellar leadership than of the collapse of the Lib Dems under Clegg and the tepid reviews of Cameron’s Tories, given the austerity program that chancellor David Osborne is pushing forward with, even with the UK mired in a double-dip recession.  So there’s much time for the economy to turn around, and if so, Cameron and Clegg will both in better shape going into an election expected in 2015, and Miliband still seems like (and remains closer to) Neil Kinnock, the perennial loser of the 1980s and 1990s British politics than to Tony Blair, who delivered three consecutive Labour routs.

The left has savaged Clegg because he refused to apologize for the actual hike in tuition fees (and not just for breaking the pledge), but the more damning criticism is that by offering up such a mealy-mouthed apology and by refusing to stand up to the Tories on not just student fees, but the direction of the economy, Clegg sounds like just another politician.  Given that Clegg’s ascent into government came largely from his freshness and the appeal of a new approach to government (Cleggmania!), that is perhaps the most dangerous aspect for Clegg’s leadership.  Continue reading Labour leads, as Clegg and the Lib Dems struggle during UK convention season →

The Netherlands

Dutch talks over streamlined VVD,Labour ‘purple coalition’ progressing rapidly

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It appears that Dutch coalitions may be even easier to form now that the monarch isn’t in charge of the negotiations.

Both Dutch prime minister Mark Rutte of the free-market liberal Volkspartij voor Vrijheid en Democratie (VVD, the People’s Party for Freedom and Democracy) and Diederik Samsom, leader of the social democratic Partij van de Arbeid (PvdA, Labour Party) are moving forward with talks for a coalition government, despite clear divides on some of the most important policy issues that will face the next Dutch government.

The VVD and Labour both emerged as winners by improving their existing standing in last Wednesday’s election — the VVD won 26.6% and 41 seats (an increase of 10 seats from the prior election in 2010) and Labour won 24.8% and 38 seats (an increase of eight) in the Tweede Kamer, the lower house of the Dutch parliament.

The negotiations, for the first time, following a new 2010 law, will be organized by the Dutch parliment instead of by the monarch, reducing one of the key roles that the Dutch monarch has traditionally played in affairs of state.

So instead of Queen Beatrix, VVD parliamentarian Henk Kamp has taken the lead in sorting which potential coalitions exist and now, as informateurs, Kamp and former Labour party leader Wouter Bos seem to have found enough common ground between Labour and the VVD for a potential coalition, and the camps are set to proceed with private negotiations out of the media spotlight.

Typically, it takes around three months for a coalition government to be formed — notwithstanding the new cabinet formation process that excludes the monarchy, however, it seems likely that a coalition may now be formed within weeks.  That’s because there are only a small number of viable coalitions, and because both Rutte (pictured above, right) and Samsom (pictured above, left) agree that forming a relatively stable coalition quickly is important, given the questions lingering over the 2013 Dutch budget and given the precarious state of European finances.

After the 2010 election, the VVD formed a minority coalition with the Christen-Democratisch Appèl (CDA, Christian Democratic Appeal), with an agreement with the right-wing, populist, anti-Muslim Partij voor de Vrijheid (PVV, the Party for Freedom) to provide support for the VVD agenda from outside the government.  That agreement held up only until April 2012, when the PVV balked at supporting further budget cuts to bring the 2013 budget deficit within 3% of GDP, thereby causing last week’s election — the fourth Dutch election in a decade.

After preliminary inquiry into potential coalitions that began last Thursday, just hours after the election result, a so-called ‘purple coalition’ of the VVD and Labour emerged as the most likely coalition, so named because it would bring together the ‘blue’ VVD and ‘red’ Labour.  The result would leave the two parties with a clear majority of 79 seats in the 150-seat chamber, but eight seats short of a majority in the upper house, the Eerste Kamer, where VVD holds 16 and Labour holds 14 of the 75 seats.

Such a coalition would be a throwback to the ‘purple coalitions’ of Labour prime minister Wim Kok from 1994 to 2002 among Labour, the CDA, the VVD and the progressive / centrist Democraten 66 (Democrats 66) (as well as a throwback to the coalitions of the 1980s between Labour and the CDA).  It’s similar to the ‘grand coalition’ that governed Germany from 2005 to 2009 between Angela Merkel’s Christlich Demokratische Union Deutschlands (CDU, the Christian Democratic Union) and the Sozialdemokratische Partei Deutschlands (SPD, the Social Democratic Party). Continue reading Dutch talks over streamlined VVD,Labour ‘purple coalition’ progressing rapidly →

The Netherlands

Rutte’s VVD edges out Samsom’s Labour as both gain in Dutch election

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Dutch prime minister Mark Rutte looked more likely than not to continue as prime minister of the Netherlands Tuesday night after his party, the free-market liberal Volkspartij voor Vrijheid en Democratie (VVD, the People’s Party for Freedom and Democracy) won the largest share of the vote in the Dutch election, with 98% of the votes counted.

The VVD won 26.6% of the vote, entitling it to 41 seats in the Tweede Kamer, the lower house of the Dutch parliament, an increase of 10 seats over the 2010 election.

It was followed very closely by the social democratic Partij van de Arbeid (PvdA, Labour Party), with 24.8%, which entitles it to 39 seats, a nine-seat increase from 2010 under the incredibly strong performance of Labour leader Diederik Samsom, a former Greenpeace activist who took over the party’s leadership only in March 2012 and spent much of the past year trailing the more staunchly leftist Socialistische Partij (SP, the Socialist Party) of Emile Roemer.

All things being equal, Rutte and Samsom are the clear winners of the election.  Rutte will now be able to attempt to form a government with a credible mandate for bringing the Dutch budget within 3% of Dutch GDP — his prior government fell in April of this year when Geert Wilders, the leader of the Partij voor de Vrijheid (PVV, the Party for Freedom), refused to support further budget cuts.

Samsom is nearly as much a winner as Rutte, though.  His polished performance in the various Dutch leaders debates (in contrast to Roemer’s often bumbling performances)  convinced Dutch voters that he possesses sufficient poise to be prime minister.  Samsom, a more leftist leader of the Labour Party as compared to his predecessor, former Amsterdam mayor Job Cohen, offered essentially the same anti-austerity option as Roemer, but without the anti-Europe sentiment of a Roemer-led government.  Even if he remains in the opposition, he can become the chief voice against Rutte’s budget cuts during the next government and work to build upon his party’s gains from today’s election.

The Socialists finished far behind with 9.7% and 15 seats — unchanged from 2010, but a huge disappointment after polls showed a gain of potentially 35 seats just a few weeks ago.

The Socialists, in fact, finished just behind Wilders’s anti-immigration, anti-Europe PVV — with 10.1% and also just 15 seats, it’s a nine-seat drop from the 2010 election, a huge disappointment for Wilders and a success for those who favor an approach of integrating Muslims into Dutch culture rather than excluding them.  Essentially, voters seemed to blame Wilders for dragging them back to the polls just two years after the last election — and furthermore, the essentially pro-European Dutch did not seem to take to Wilders’s contrived and virulent campaign to bring the Dutch guilder back and pull the Netherlands out of the eurozone.  Wilders never found the same resonance over Europe in 2012 that he obvious found over Muslim immigration in 2010.

Rutte’s coalition partners, the once-dominant but now-atrophied Christen-Democratisch Appèl (CDA, Christian Democratic Appeal) won just 8.5% and 13 seats, a drop of eight seats from 2010.  The progressive / centrist Democraten 66 (Democrats 66) won 7.9% and 12 seats.

Also returning to the Tweede Kamer were the center-left, Christian Democratic ChristenUnie (CU, Christian Union) with 3.1% and five seats, the ecologist GroenLinks (GL, GreenLeft) with 2.3% and three seats, the Calvinist, ‘testimonial’ Staatkundig Gereformeerde Partij (SGP, the Reformed Political Party) with 2.1% and three seats, and finally, both of the newly-formed Labour spinoff 50PLUS and the animal welfare advocate Partij voor de Dieren (PvdD, Party for the Animals), each with 1.9% and two seats.

As soon as tomorrow, cabinet formation talks are expected to begin — and for the first time, the Dutch parliament will take the lead in exploring potential coalitions (instead of the Dutch monarch, Queen Beatrix).  Those talks typically take up to three months, but can take longer — the 2010 government was formed after four months of negotiations.

Given the result, it looks like three coalitions are possible: Continue reading Rutte’s VVD edges out Samsom’s Labour as both gain in Dutch election →

The Netherlands

On the eve of Dutch elections, a primer (and a prediction) on cabinet formation

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In most countries, an election is the decisive moment in forming a government.  After the election results are in, it’s usually immediately clear who will become the next president or prime minister or chancellor (or so on).  Even in countries with complex parliamentary systems, where coalitions still take time to negotiate, it’s typically pretty clear to spot which party will emerge to form the government.

In the Netherlands, however, the election is more prologue than main event: no single party has won a majority of seats in the Dutch parliament since 1900, so the main government-forming exercise is the complex negotiation that follows Dutch elections.  While not as tortured as recent Belgian political negotiations, Dutch cabinet negotiations typically take around three months to complete — and that’s only when the coalition formation process is fairly routine.

The last government, a minority coalition headed by Mark Rutte, was sworn in only in October 2010, following elections earlier in June.

This year, two thing augur a relatively longer (than shorter) period of cabinet negotiations:

  • First, poll volatility and the likelihood that a large number of parties are expected to win double-digit numbers of seats in the 150-member Tweede Kamer, the lower house of the Dutch parliament, will make the arithmetic of forming a majority government even more difficult.
  • Second, MPs eliminated the role of the monarch from the cabinet formation process in 2010, which will now be headed by the chair of the Tweede Kamer, Gerdi Verbeet, instead of Queen Beatrix (pictured above), leaving the process more uncertain and less transparent than in years past.

In years past, the Dutch monarch (since 1980, Queen Beatrix) has typically initiated the process by meeting with each of the party leaders and appointing an informateur, typically a senior statesman, to explore the possibility of various governing coalitions.  Coalition negotiations can go through several stages of informateurs — for example, in 2010, the Queen ultimately appointed five different informateurs, including three who served in the role twice.  Thereupon, the monarch appoints the formateur — typically the leader of the largest party in parliament — to negotiate the details of the coalition agreement among the coalition partners, including the governing agenda for the coalition, appointments to the cabinet and other issues.

This year, the process is a bit more unsettled — it will be Verbeet and parliamentarians who can shape the agenda of the negotiations, which could result in delays as everyone navigates a new process, and which some critics believe could make the cabinet formation process less transparent.  Although Queen Beatrix was widely seen as steering the 2010 negotiations away from any PVV participation in government (and that bias was one of the reasons MPs voted to strip the monarchy of its role in cabinet formation), it is not necessarily the case that parliamentarians will have any less bias in choosing informateurs.

The final TNS Nipo poll forecasts the following results for tomorrow’s election (similar to results from other polls):

  • 35 seats for Rutte’s free-market liberal Volkspartij voor Vrijheid en Democratie (VVD, the People’s Party for Freedom and Democracy).
  • 34 seats for the social democratic Partij van de Arbeid (PvdA, Labour Party), which has seen its support rise with the success of its leader Diederik Samsom in the recent debates.
  • 21 seats for the anti-austerity, leftist Socialistische Partij (SP, the Socialist Party), a marked decline from a month ago, when it led polls, before its leader Emile Roemer made some anti-European comments and was seen as having stumbled in the debates.
  • 17 seats for the populist, anti-Europe, anti-immigrant Partij voor de Vrijheid (PVV, the Party for Freedom) of Geert Wilders, a sharp decline in seats.
  • 13 seats for the progressive/centrist Democraten 66 (Democrats 66).
  • 12 seats for the conservative Christen-Democratisch Appèl (CDA, Christian Democratic Appeal), a sharp decline.
  • 6 seats for ChristenUnie (CU, Christian Union), a smaller, vaguely center-left, Christian democratic party.
  • 4 seats for GroenLinks (GL, GreenLeft), the Dutch green party.
  • 4 seats for 50PLUS, a new party founded in 2009 by former Labour politicians.
  • 2 seats for Staatkundig Gereformeerde Partij (SGP, the Reformed Political Party), a Calvinist party that’s in electoral alliance with ChristenUnie, but is typically a ‘testimonial’ party uninterested in joining coalitions.
  • 2 seats for the Partij voor de Dieren (PvdD, Party for the Animals), another ‘testimonial’ party focused on animal rights and welfare.

If those polls are correct — and, I’ll caution, polls still show many undecided voters — I see three potential coalitions:

  • a centrist, pro-Europe ‘purple’ coalition, largely between the VVD and Labour,
  • a more leftist anti-austerity coalition, largely between Labour and the Socialists, and
  • an unlikelier VVD-led pro-austerity coalition without Labour.

It seems more likely than not, however, that Labour is headed back into government as either the leading party or a supporting coalition member of the next government. Continue reading On the eve of Dutch elections, a primer (and a prediction) on cabinet formation →

The Netherlands

Samsomania! Five reasons why everything’s coming up roses for the Dutch Labour Party

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In less than two weeks, we’ve watched the Dutch election transformed from a two-party race into a three-way tie, as the Dutch Labour Party leader Diederik Samsom has burst into a starring role on the Dutch political stage.

Samsom’s party, the social democratic Partij van de Arbeid (PvdA, the Labour Party), now either leads or is essentially tied with the two prior leading parties in advance of the September 12 elections for the Tweede Kamer, the lower house of the Dutch parliament.

Those two parties are the center-right, free-market liberal Volkspartij voor Vrijheid en Democratie (VVD, the People’s Party for Freedom and Democracy), led by current prime minister Mark Rutte, and the stridently leftist, anti-austerity Socialistische Partij (SP, the Socialist Party) led by Emile Roemer.

In the latest Ipsos Nederland poll and projection, Rutte’s VVD would win 34 seats, Roemer’s Socialists would win 27 seats and Samsom’s Labour would win 26 seats.  Three other smaller parties win a significant share of the vote: the anti-Muslim (and now increasingly anti-Europe) Partij voor de Vrijheid (PVV, the Party for Freedom), led by Geert Wilders, would win just 20 seats, the progressive Democraten 66 (Democrats 66) would win 14 seats, and the center-right Christen-Democratisch Appèl (CDA, Christian Democratic Appeal) would win just 13 seats.  TNS Nipo and Maurice du Fond polls show an even more ascendant Labour result.

Rutte’s VVD emerged with the most seats in the prior 2010 election, and he formed a minority government with the CDA, with outside support coming from Wilder’s PVV.  The current government fell in April, when Wilders refused to support Rutte’s budget package, which aimed to cut the 2013 Dutch budget to within 3% of GDP.

Labour, then headed by former Amsterdam mayor Job Cohen, finished with one fewer seat than the VVD in 2010, and is currently the main opposition party in the Tweede Kamer, but it had consistently lost support ever since — until now.  Cohen stepped down earlier this year, and Samsom, a more leftist Labour leader, replaced him in March.

So the latest poll capture the recent resounding resurgence for Labour, but also indicates that the Socialists and the Democrats 66 would still improve on their 2010 election totals, indicating that the Dutch parliament would be a much more anti-austerity parliament — a Labour-Socialist coalition is a possibility, as is a so-called ‘purple coalition’ between Labour and the VVD.  Labour last governed the Netherlands from 1994 to 2002 under prime minister Wim Kok, when the VVD and Labour joined together under a so-called ‘purple coalition’ (alongside the Dutch Greens and the Democrats 66), and Labour and the CDA governed in coalitions in the 1980s.

Whew! But that doesn’t explain why Samsom has so drastically improved his party’s chances to the point where he is now a credible contender, with Rutte and Roemer, to become The Netherlands’s next prime minister.  Here are five reasons why:  Continue reading Samsomania! Five reasons why everything’s coming up roses for the Dutch Labour Party →

Australia, Nauru, Papua New Guinea

Gillard’s 180-degree turn and what it means for Australian asylum policy

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It’s not just American politicians who have a hard time dealing with illegal immigration.

Unravelling stability in Afghanistan, where the United States has led an 11-year military effort, may be exacerbating a rise in boat-bound refugees to Australia, causing headaches for its Labor-led government.

Australian prime minister Julia Gillard yesterday announced that her government would seek to enact the recommendations of a nonpartisan review and adopt a version of the ‘Pacific Solution’ adopted by Labor’s predecessor Liberal government of John Howard — Gillard has called on Australia’s parliament to pass a new law allowing for the reopening of detention centers on Nauru and on Manus Island in Papua New Guinea within as soon as a month.

The move will result in a return to offshore processing for asylum-seekers trying to arrive by boat to Australia.  That means that such refugees would face years of detention in Nauru or PNG if apprehended by Australian authorities at sea.

It’s a 180-degree turnaround for Labor, although Gillard had promised (during her latest interparty leadership contest with former prime minister Kevin Rudd in February) to reverse what’s been a five-year upswing in illegal arrivals by sea to Australia — and a correspondingly higher number of refugee deaths.  So although Gillard may be weakened by the sudden turn, it’s an issue that’s long been a political albatross for her and for Labor.  When Labor returned to power in 2007 under Kevin Rudd, the party quickly scrapped the ‘Pacific solution’ by enacting what Rudd considered more humane policies, closing the Nauru and PNG detention centers in favor of onshore processing centers.

The key question over the past five years is why the number of refugees by boat rose so dramatically in 2007 — proponents of the Pacific Solution, such as Liberal/National Coalition leader Tony Abbott, argue that the leniency of Labor asylum policies encouraged more refugees to arrive by sea.  Abbott supports the return to using offshore detention, has harshly criticized Labor policy for resulting in over 600 refugees deaths by drowning, and is today crowing over Gillard’s reversal:

“I’ve been saying for four years that the Prime Minister should pick up the phone to Nauru,” says the Opposition Leader.

“We have had enormous cost, untold tragedy and trauma that could have been avoided if the Prime Minister had been prepared to do this at any time in the last four years,” says Tony Abbott.

“We’ve had 22,000 illegal arrivals, almost 400 illegal boats.”

Although many of the refugees come directly by boat from Indonesia or Malaysia, asylum-seekers often begin their journey from throughout greater Asia, including China, Vietnam, Iraq, Iran and Afghanistan.  Even under the Pacific Solution, most refugees who arrived by boat were bona-fide refugees and around two-thirds were either granted asylum in Australia or resettled in other countries.

Opponents of the Pacific Solution, such as former prime minister Malcolm Fraser, say that the number of refugees rose due to external factors.  Fraser, a former Labor prime minister of Australia from 1975 to 1983, yesterday called Gillard’s propsed approach ‘racist’: Continue reading Gillard’s 180-degree turn and what it means for Australian asylum policy →

United Kingdom

Tensions start to appear in Tory-Lib Dem coalition in the UK

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There might be no more yawn-inducing issue in UK politics than House of Lords reform.

But that issue has led to the greatest moment of crisis between the Conservative Party and the Liberal Democratic Party, which together govern the United Kingdom in a first-of-its-kind Tory-Lib Dem coalition government.

The importance of the week’s jousting is not about electoral reform, to save the suspense.

It’s about the that it marked the first major tear in the Coalition: a Tory bid to stymie Lords reform led Lib Dem leader and deputy prime minister Nick Clegg (pictured above, right) to declare that he would direct his party to vote against another electoral reform measure supported by the Tories.  It’s the first time Clegg has so aggressively and directly fought back against his Coalition partner.

Right-wing newspapers are already savaging Clegg.  But for its faults, the two-party Coalition still remains more united and disciplined than the Tories were (when they were governing by themselves!) in the last years of John Major’s government in the mid-1990s, when Europe and scandal hopelessly split an undisciplined party.  It’s probably more united than the New Labour government in its last years, hopelessly split between Blairites and Brownites on the basis of no true underlying policy differences.

The most alarmist talk about the danger to Cameron’s government is overstated — more most surprising, perhaps, is that the Coalition made it nearly halfway through the natural term of the parliament with so much unity.  Clegg has not yet flinched in giving his party’s support to Tory leader and prime minister David Cameron (pictured above, left), even as the budget cuts of a severe austerity program implemented by Tory chancellor of the exchequer George Osborne seem to be dragging the UK economy back into a double-dip recession, to say nothing of student fees or other policies that are less than satisfying to the Lib Dem rank-and-file, which has typically been more of the left than of the right.

As The Guardian notes, Clegg can claim a moderating influence on the current government:

Most of the cases that [Clegg] can demonstrate are negative ones. The Lib Dems have played a vital role in making Tory legislation less extreme, less red meat. The health reforms could have been worse; Europe policy would have been more barking; welfare changes would have hurt the vulnerable even more.

But voters don’t seem to be giving Clegg much credit.  The center-left Labour now has a five-point lead over the Tories (39% to 34%) in the latest Guardian/ICM poll from late June, but the Lib Dems have taken the greatest electoral brunt with just 14% support, a sharp fall from its 23% vote in May 2010.

Luckily for Clegg and Cameron, most of the UK was too busy on holiday or watching the Olympic Games in London to notice (although Cameron must not be thrilled that his semi-rival, London mayor Boris Johnson, has received such fawning attention).

So what happened? Continue reading Tensions start to appear in Tory-Lib Dem coalition in the UK →

Israel

Kadima leaves Israeli grand coalition over national service ‘Tal Law’ proposal

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Well, that was short-lived.

After just 70 days in what was meant to be the broadest coalition in a generation of Israeli politics, Shaul Mofaz, the leader of the centrist Kadima party, announced that Kadima will leave Benjamin Netanyahu’s coalition over the terms of a controversial law designed to address the exemption of ultra-orthodox haredim Jews — yeshiva students of traditional religious texts — from mandatory service in the Israel Defense Force.

Netanyahu will continue as prime minster, albeit with his original 66-member coalition in the Knesset, Israel’s 120-seat parliament, with an August 1 deadline for enacting a new law.

Under the latest proposal, half of haredim between age 18 and 23 would be drafted into the IDF and another half would be drafted into national service between age 23 and 26.  It is only the latest attempt — the so-called “Tal Law” first emerged in 2002 and was extended in 2007, and has been controversial throughout its history.  Israel’s High Court of Justice, however, ruled that the Tal Law is unconstitutional and ordered the government to enact a replacement to the current law by August 1.

Mofaz, who had argued for a compulsory draft of everyone up to age 23, complained that the latest proposal did not go far enough:

Mofaz said that the proposal violates the ruling of the High Court on the issue, the principle of equal sharing of the burden of military service, is not proportional and does not meet the ultimate test of effectively resolving the issue.

Mofaz also noted that the proposal also did not include all draftable persons, and therefore, in reality, would merely maintain the unmanageable status quo.

The decision reinforces the difficult in crafting an alternative to the Tal Law in a manner that satisfies everyone in Netanyahu’s coalition. In addition to his own Likud Party and a small breakaway faction of Labor Party MKs loyal to defense minister and former prime minister Ehud Barak, the coalition contains several ultra-orthodox parties, including Shas, who are the most pro-exemption parties in the Knesset.  But it also contains the nationalist and secular Yisrael Beiteinu, which is introducing to the Knesset a bill that would require all 18-year-olds to serve (although Netanyahu has allowed Yisrael Beiteinu to introduce the bill, the remaining members of his coalition will defeat it).

Earlier this month, Netanyahu dissolved the Plesner Committee, which had been tasked with coming up with an alternative to the Tal Law, after committee members representing both Shas and Yisrael Beiteinu resigned from the committee in protest.

The question of whether to exempt haredimfrom IDF service — or whether to fashion some alternative form of civil service on the basis of equal burden-sharing — is an emotional issue in a country where security threats remain a top concern of all Israelis. Continue reading Kadima leaves Israeli grand coalition over national service ‘Tal Law’ proposal →

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.

Cyprus, Greece

No country for old men

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It’s not been the best week for the new Greek government.

Later this week, the key decision-makers of the European Union will be engaged in the latest attempt at ending the eurozone’s crisis at a conference in Rome.

But the new Greek prime minister won’t be there. And neither will his finance minister, a post that may now be vacant.

A week after his center-right, pro-bailout New Democracy won a narrow victory in Greece’s parliamentary elections, Antonis Samaras had emergency surgery over the weekend to repair a detached retina.

Meanwhile, his nominee for finance minister, Vassilis Rapanos, the president of Greece’s national bank, has resigned (or turned down the offer — he was never formally sworn in) after falling ill on Friday and being rushed to the hospital.

Newly sworn-in foreign minister Dimitris Avramopoulos won’t attend.

Neither will Evangelos Venizelos, a former finance minister and leader of the center-left (and also pro-bailout) PASOK nor Fotis Kouvelis, the leader of the more leftist (and moderately anti-bailout) Democratic Left.  Both PASOK and the Democratic Left are supporting Samaras’s government, but have refused to take any ministerial roles in the new government — indeed, both Venizelos and Kouvelis seem incredibly terrified that the staunchly anti-bailout and radical leftist SYRIZA will steal even more of their support base.  SYRIZA placed a strong second in the June 17 elections and now threatens to displace PASOK as the dominant party of the Greek left.

Greece’s president, Karolos Papoulias, will lead the delegation instead.

Leading Greek newspaper To Pontiki calls out the government for its “sloppy handling” of Greece’s representation in Rome, but it is hard to blame Samaras too much for the unfortunate timing of two medical emergencies.  But the incident marks an ominous tone for Greece at a time when the country seems to have days or weeks (not months) to shore up Greece’s position in the eurozone.  After a campaign in which even Samaras agreed that the bailout package should be renegotiated in a way to help the Greek economy out of recession, it will be a massive blow to Samaras’s government that he will not be in Rome, nor will his initial choice for finance minister, nor will the leaders of the two parties that are his coalition partners.

In other news likely to be depressing to Athens, the country with the largest exposure to Greece’s banks has now requested a bailout from the European Union as well — Cyprus needs €1.8 billion this week to shore up Cyprus Popular Bank.  The amount, tiny by EU bailout standards, represents 10% of Cyprus’s GDP.  Although the European Central Bank will want to impose some conditions on the bailout, Cyprus has also been talking to Moscow and Beijing about a cash infusion, making the Cyprus situation not only a financial headache for Athens, but a strategic headache for Berlin and Brussels as well (and it’s not as if the EU doesn’t have one or two problems that make even Greece seem like an afterthought).

Greece

Samaras pieces together coalition after ND places first in Greek election

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The rest of the eurozone — indeed, the rest of the world — may have breathed a sigh of relief Sunday when it turned out that the pro-bailout parties appeared likely to secure a majority of the seats in the second of two highly divisive parliamentary elections in Greece.

As shown above, New Democracy (Νέα Δημοκρατία) has won the largest share of votes, taking with it the 50-seat “bonus” in the Hellenic parliament.  It is now very likely to form a coalition with the pro-bailout PASOK (Panhellenic Socialist Movement – Πανελλήνιο Σοσιαλιστικό Κίνημα), and possibly even with the Democratic Left (Δημοκρατική Αριστερά), according to reports of the latest coalition talks.  New Democracy’s leader Antonis will likely be Greece’s new prime minister, with the only question being whether PASOK and Democratic Left figures will take positions in the government or merely provide support to the coalition.

Samaras is allegedly favoring the appointment of Vassilis Rapanos, the president of National Bank, as finance minister.

Athens News has a full blog of Tuesday’s coalition talk developments.

In the meanwhile, here’s a look at where each of the main political actors stand in the fallout of Sunday’s vote, looking onward to what should still be a hot, wearisome summer for Greece and its position in the eurozone: Continue reading Samaras pieces together coalition after ND places first in Greek election →

Greece

Post-‘Spailout’ climate pulls Samaras even closer to SYRIZA’s position

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As the second Greek legislative campaign in as many months winds down for Sunday’s vote, it is becoming difficult to spot the difference between the leaders of the two parties most likely to win.

Oh what a difference a month can make.

Antonis Samaras, leader of the center-right New Democracy (Νέα Δημοκρατία), has been moving toward a “renegotiation” position for some time, but his latest comments about a potential renegotiation of Greece’s bailout terms today vary astonishingly little from what Alexis Tsipras, leader of the leftist SYRIZA, the Coalition of the Radical Left (Συνασπισμός Ριζοσπαστικής Αριστεράς), has been arguing all along:

Overhauling Greece’s debt deal, known as the memorandum, was also at the top of his party’s agenda, he said. “We will change the memorandum, the relentless recession cannot go on.”

He indicated that European leaders were open to renegotiating Greece’s debt deal. “Europe is changing, Greece has a chance for a fair negotiation within this climate of change,” he said.

Samaras said ND had set two conditions for joining other parties in a coalition government: securing Greece’s position in the eurozone and modifying the memorandum.

It’s a staggering evolution by Samaras, even since May.  Regardless of whether SYRIZA wins on June 17, it has cleared moved the terms of Greece’s national debate.

Meanwhile, read Tsipras’s op-ed in The Financial Times from yesterday — he sounds much more like Samaras than the marching-in-the-streets radical of the first election campaign (indeed, the idea of Tsipras writing an op-ed in The Financial Times back in April would itself have been risible).  It’s clear that, with even-or-so odds of becoming Greece’s next prime minister, Tsipras is looking to project an image of sober competence:

The systemic fiscal problems of Greece are, in large part, a problem of low public revenues.  Myriad tax concessions and exemptions granted to special interests by previous administrations, along with a low effective tax rate on personal income as well as capital, explain much of the problem. So too does the highly ineffective method of tax collection. Continue reading Post-‘Spailout’ climate pulls Samaras even closer to SYRIZA’s position →