Tag Archives: czech republic

Is Donald Trump the American version of Le Pen?

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Over the weekend, Le Figaro pondered whether Donald Trump, the tart-tongued real estate mogul, might be the U.S. version of Jean-Marie Le Pen, the French far-right founder of the Front national (National Front) who’s also become notorious for controversial statements and for trampling ‘political correctness.’USflag

Le Pen, after all, edged out the leftist prime minister Lionel Jospin in the 2002 presidential election, establishing the Fifth Republic’s most lopsided runoff between the noxious Le Pen and the incumbent, center-right Jacques Chirac. Le Pen’s daughter, Marine Le Pen, who is working to broader the FN’s appeal, is polling high in the 2017 presidential contest and may win one of the two final runoff spots.

There are significant differences between the Le Pen family and Trump. Le Pen pere frequently expressed his doubts about the Holocaust with a heavy dose of anti-Semitic populism — so far, Trump hasn’t started questioning the Holocaust or attacking Jewish Americans. But both Le Pen and his daughter developed a significant constituency of French voters by expressing outrage against the influx of immigrants into the country, a concern much closer to Trump’s heart (he announced his candidacy by attacking Mexicans, promising to build a wall along the southern US border and billing it to the Mexican government).

More recently, Marine Le Pen has broadened her attacks to include European institutions, including the eurozone, as an attack on the sovereignty of France. In her exclamations of “Oui, la France!” there’s more than an echo of Trump’s “Let’s make American great again” shtick.

But the support that Trump has amassed in the summer of 2015 isn’t so unlike the wave of populism that’s enveloped Europe (on both the right and the left). Though the US economic recovery has chiefly outpaced that of Europe’s, it’s not been an easy expansion. Sustained unemployment, tepid GDP growth and stagnant wages have left working-class and middle-class American voters less secure — just like working-class and middle-class European voters.

It’s no surprise that since 2010, several new voices of the populist right and the populist left have demonstrated their electoral muscle:

  • In Italy, comic and blogger Beppe Grillo obtained nearly a quarter of the vote in the 2013 elections, and polls show that he still commands upwards of 25% of the vote. Frank Bruni wrote in May in The New York Times that Trump shares much in common with Silvio Berlusconi, the media tycoon who dominated Italian politics from the mid-1990s to the late 2000s and, like Trump, reveled in controversial pronouncements. But Berlusconi was primed for politics by Bettino Craxi, the Socialist prime minister in the 1980s who was ultimately forced into exile in Tunisia; it’s not like George W. Bush or Newt Gingrich developed Trump as a protégé.
  • In the United Kingdom, anti-establishment candidates running for the Scottish National Party (SNP) wiped out longstanding Labour and Liberal Democratic strongholds in Scotland and, in the current Labour Party leadership contest, the far-left Jeremy Corbyn, a firm anti-austerian who wants to renationalize British railways, leads many surveys against more moderate opponents.
  • In Greece, the far-left Alexis Tsipras and SYRIZA (Συνασπισμός Ριζοσπαστικής Αριστεράς, the Coalition of the Radical Left) took power in January’s elections, and the equally far-left Podemos hopes to pull off a similar victory in Spain’s general election in December.

It’s not surprising that economic pain, angst about sovereignty, identity and migration and other doubts about ruling political elites are fueling the same kind of anti-establishment reaction in the United States, too, and it’s the same instinct that powered the ‘tea party’ movement of the early 2010s.

It’s too soon to tell what Trump’s lasting legacy will be on the 2016 presidential race. His poll numbers might soon collapse (or not). He could wipe out before the first votes are cast in the Iowa caucuses or the New Hampshire primary. He might win a few early contests before Republican elites step in (and they will) to deny him the presidential nomination. He’s still holding the door open to an independent third-party run in the general election.

But the real template for Trump isn’t necessarily Le Pen or Tsipras or Corbyn or Grillo or even Berlusconi, though they all draw support from the same anti-establishment, populist reservoir.

Instead, it’s a duo of neophyte businessmen who have taken on powerful (and experienced) political leaders over the past two years to upend the status quo. Though Andrej Kiska and Andrej Babiš aren’t necessarily household names, even in Europe, they represent more closely the kind of appeal that Trump — at his best, perhaps — could replicate to upend the Republican establishment.

If I were Corey Lewandowski, Trump’s campaign manager, I would be furiously studying each case to extrapolate lessons for Trump.

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Kiska (pictured above) is a 52-year old businessman who spent much of his life as a entrepreneur in Slovakia, making his fortune in the installment payments and the credit business. Despite his failures to break into the US market, Kiska shifted to charitable works in 2006, founding Dobrý anjel (Good Angel), a charitable organization that provides funds for the seriously ill.

Running as an independent in the Slovakian presidential election in March 2014, Kiska defeated Slovakia’s sitting center-left prime minister Robert Fico. The Slovak presidency is effectively ceremonial, but Fico’s victory would have consolidated power between the ruling party and the presidency. Fico’s defeat dealt an otherwise popular figure a significant blow — and Kiska’s victory preserved a sense of constitutional balance between the executive and the parliamentary.

Going into the election, Fico was a well-liked prime minister and Slovakia’s economic record outpaced its closest neighbors; Kiska was a political newcomer. Fico’s party, Smer–sociálna demokracia, (Smer-SD, Direction-Social Democracy), still widely leads polls for next year’s general election, for example.

Unlike Trump, Kiska didn’t campaign on the macho, alpha-male persona of a successful businessman. But Kiska succeeded by planting doubts about Fico’s campaign and the fact that Kiska was personally untainted by political corruption and ties to Soviet-era politics. By all counts, he’s thrived in the presidential role since taking office last year. The lesson to Trump is that he can dial down the antics and still present a capable challenge to the GOP establishment. Though Trump may embellish the influence that his past donations might have procured, there’s no doubt he is right when he showcases the corrosive influence of money on politics in the post-Citizens United world.

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Babiš (pictured above) is also a Slovak-born businessman, but the 60-year old made his fortune in the Czech Republic. Like Kiska, he left business to form a political party, Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens) in 2011.

In the 2013 Czech elections, ANO won nearly 20% of the vote, finishing a strong second to the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) in a highly fragmented result. Babiš, who developed Agrofert, an agricultural and food processing company, into one of the most successful companies in the country, later purchased a series of media companies before he turned to politics as one of the wealthiest men in the Czech Republic. Not surprisingly, Babiš argued that he would govern the Czech Republic like a business.

More caustic than Kiska, and more sympathetic to neoliberal policies, Babiš attacked both Czech social democrats and conservatives as corrupt and dishonest, arguing for an end to immunity for political figures. In 2012 and 2013, despite his inexperience, he expertly filled a void for an electorate that had lost trust in the central European country’s ruling elite. In that regard, Trump’s rhetoric much more strongly resembles that of the pugilistic Babiš.

In the past four years alone, a center-right prime minister resigned after his chief of staff (with whom he had become romantically involved) was caught spying on the former prime minister’s wife. It’s also a country where a former Social Democratic prime minister won the presidency in early 2013 and immediately tried to outmuscle the Czech parliament in a constitutional power struggle. That gave Babiš the opportunity to present himself as the truth-telling man of action, despite fears that ‘Babišconi’ would become just another oligarchic leader and despite troubling accusations that he cooperated with the Czech internal police during the Soviet era as well as with the Soviet KGB.

Nevertheless, after the 2013 election, Babiš  set aside his differences with elites and brought ANO into the current government — he now serves as the country’s finance minister. Though the next Czech elections do not have to be held until 2017, ANO leads polls and there’s a good chance that Babiš could become the next prime minister.

The lesson here from Trump is that the righteous ‘pox-on-both-your houses’ anger of the outsider can be effective so long as it’s targeted on the tangible excesses and failures of the ruling class. But it’s not enough, as Trump has done, just to call yourself ‘smart’ and politicians ‘stupid.’ What made Babiš successful was presenting the devastating case for why Czech politics had become so broken.

 

Iohannis upsets Ponta in Romanian presidential election

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It’s becoming a more German Europe in more ways that one.Romania Flag Icon

In a stunning upset victory, Sibiu mayor Klaus Iohannis, an ethnic German, defeated prime minister Victor Ponta, in Sunday’s Romanian presidential election, challenging confident predictions that Ponta would easily take the presidency.

Ponta’s center-left Partidul Social Democrat (PSD, Social Democratic Party), dominated both the December 2013 national parliamentary elections and the May 2014 European parliamentary elections, and Ponta entered the runoff as the prohibitive favorite after a resounding victory in the October 2 first round, when he took 40.44% of the vote to just 30.37% for Iohannis, the new leader of the center-right Partidul Național Liberal (PNL, National Liberal Party).

But Ponta’s 10-point lead disguised the fact that he fell 10% short of an absolute majority and, as voters’ minds focused on the runoff, Iohannis gained from a surge in turnout — from around 53% in the first round to over 64% in the runoff.

That’s despite the endorsement that Ponta won from third-place challenger, Călin Popescu-Tăriceanu, a former PNL leader and the country’s prime minister between 2004 and 2008, who founded the Partidul Liberal Reformator (PLR, Liberal Reformist Party) in July, helped boost Iohannis to an unexpectedly wide margin of victory — 54.50% to just 45.49% for Ponta.

Iohannis, a physics teacher by training, has served as mayor of Sibiu, a city in Transylvania, since 2000, and he led the relatively small Forumul Democrat al Germanilor din România (FDGR, Democratic Forum of Germans in Romania) from 2002 to 2013. As outgoing incumbent Traian Băsescu receded from the spotlight after a decade as president, Iohannis assumed the leadership of the PNL, the larger of Romania’s two major opposition parties, though Iohannis also had the support of Băsescu’s Partidul Democrat-Liberal (PD-L, Democratic Liberal Party).

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Though the PNL joined forces with Ponta (pictured above) in 2011 to form the Social Liberal Union, it left the coalition in February 2014 to enter opposition, eyeing an alliance with the PD-L. When the PNL suffered disappointing losses in the May European elections, however, its leader Crin Antonescu stepped down, paving the way for Iohannis to reboot the party and become the joint PNL/PD-L presidential candidate.

Though ethnic Germans settled much of Transylvania, including the city of Sibiu, two waves of German exodus, first after World War II and again after the end of the Cold War and the fall of the Iron Curtain, have left few German-speaking enclaves in Romania. Today, just over 4% of Romanians are ethnically German. Continue reading Iohannis upsets Ponta in Romanian presidential election

How Miro Cerar rose to the top of Slovenian politics in four weeks

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Slovenians on Sunday turned over their country’s government to Miro Cerar, a political neophyte that barely anyone outside (or even inside) Slovenia had ever heard of a year ago.slovenia

Cerar (pictured above), an attorney and law professor, and the son of an Olympic gymnast, formed the Stranka Mira Cerarja (SMC, Miro Cerar’s Party), barely a month ago. But that didn’t matter to Slovenians, and the SMC easily won the July 13 snap elections by a margin of 34.6% to 20.7% against the center-right center-right Slovenska demokratska stranka (SDS, Slovenian Democratic Party), whose leader, two-time prime minister Janez Janša, has been sentenced to two years in prison in relation to corruption charges. Cerar’s victory represents the strongest victory of any party in a Slovenian election since the return of Slovenian sovereignty in 1990.

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Sunday’s snap parliamentary elections follow the resignation two months ago of Alenka Bratušek, Slovenia’s first female prime minister, after just over a year in office. Bratušek’s center-left coalition government is the second government since Slovenia’s last elections in December 2011.

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RELATED: Bratušek, Slovenia’s first female prime minister, resigns

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Cerar will now likely command 36 seats in the 90-member, unicameral Državni zbor (National Assembly), forcing him to form a coalition government with any of a number of allies in a National Assembly that remains fragmented, despite the strength of Cerar’s  mandate.

Cerar’s success is in large part due to his novelty. He’s not tainted by the past six years of austerity or the past two decades of corruption that characterizes much of Slovenia’s political elite. He lies somewhat in the center or center-left of Slovenian politics, leaning right on the need for economic reform, but leaning left on the need for reconsidering some austerity-era policies that Cerar believes have harmed Slovenian growth. For example, he’s called into question several recent plans for privatizations, including the national telecommunications company and the corporation that run’s the national airport. Continue reading How Miro Cerar rose to the top of Slovenian politics in four weeks

A detailed look at the European parliamentary election results (part 2)

 Across Europe on Monday, officials, voters and everyone else were trying to sort through the consequences of yesterday’s voting, across all 28 member-states, to elect the 751 members of the European Parliament.European_Union

Late Sunday, I began analyzing the results on a state-by-state basis — you can read my take here on what the European election results mean in Germany, France, the United Kingdom, Italy and Spain.

This post picks up where that left off, however, with a look at some of the results in Europe’s mid-sized member-states.

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RELATED: A detailed look at the European parliamentary election results (part 1)

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With the count now almost complete, here’s where the Europe-wide parties stand:

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The European People’s Party (EPP), which has been the largest group in the European Parliament since 1999, will continue to be the largest group, but with fewer seats (215) than after any election since 1994.

The second-largest group, the Party of European Socialists (PES) has 188 seats, a slight gain, but not the breakout performance for which it was hoping.

The Alliance of Liberals and Democrats of Europe (ALDE) will remain the third-largest group, notwithstanding the collapse of two of its constituent parties, the Liberal Democrats in the United Kingdom and the Freie Demokratische Partei (FDP, Free Democratic Party) in Germany.

The European Greens have won 53 seats, just two less than before the elections. The Party of the European Left, which had hoped to make strong gains on the strength of its anti-austerity message, gained nine seats to 44.

The Alliance of European Conservatives and Reformists (ECR), a slightly eurosceptic group of conservative parties, including the Conservative Party of the United Kingdom, holds steady at 46 seats — that’s a slight loss of around eight seats. The Movement for a Europe of Liberties and Democracy (MELD) gained six.

The real increase was among the ‘non-inscrits,’ the unaffiliated MEPs, which will rise from around 30 to 104. The bulk of those MEPs include the newly elected eurosceptics that have made such a big splash in the past 24 hours, including Marine Le Pen’s Front national (FN, National Front) in France.

But, in addition to being a pan-European contest with wide-ranging themes that resonate throughout the European Union, the elections are also 28 national contests, and they’ve already claimed resignations of two center-left leaders — Eamon Gilmore, of Ireland’s Labour Party, and Alfredo Pérez Rubalcaba, of the Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party).

Here’s a look at how the European elections are affecting nine more mid-sized counties across the European Union: Poland, Romania, The Netherlands, Belgium, Greece, the Czech Republic, Portugal, Hungary and Sweden.

Continue reading A detailed look at the European parliamentary election results (part 2)

Kiska elected president of Slovakia in setback for Fico

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Robert Fico’s attempt to extend his control over both the Slovakian parliament and presidency failed Saturday, when former businessman and philanthropist Andrej Kiska (pictured above) overwhelmingly defeated Fico in the second-round runoff.slovakia flag

Though Fico narrowly led in the first round, Kiska won a decisive victory with 59.38% of the vote. Fico, the incumbent prime minister, won just 40.61%. Kiska, an electrical engineer by training, made his fortune in the installment payments / credit business. Eight years ago, he founded Dobrý anjel (Good Angel), a charitable organization that helps provide funds for the seriously ill.

Kiska’s victory parallels the rise of Andrej Babiš, also a former businessman, who became the deputy prime minister and finance minister of the Czech Republic after his new center-right party nearly won last October’s Czech parliamentary elections. Babiš, interestingly enough, is Slovak by birth. Though Kiska will have a relatively circumscribed role in Slovak politics, due to the largely ceremonial nature of the Slovak presidency, the emergence of figures like Kiska and Babiš could augur the rise of a new, pragmatic center-right in central Europe whose leaders come from the business world and not from the fraught economics and tainted politics (on both the right and the left of the immediate post-Cold War period).

Fico, the leader of Slovakia’s main center-left party, Smer – sociálna demokracia (Direction — Social Democracy), has led the country’s government for six of the past eight years. His defeat on Saturday will undoubtedly weaken his position as prime minister, given that his critics can argue the election was a referendum on Fico’s record. Smer won’t face voters again until 2016, but it was Fico’s choice to contest the presidential election, making his defeat on Sunday almost entirely self-inflicted.  Continue reading Kiska elected president of Slovakia in setback for Fico

Fico, Kiska advance to Slovak presidential runoff

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Slovak prime minister Robert Fico led in the first round of the country’s presidential election on Saturday, but he’ll face stiff competition in the March 29 runoff from political neophyte Andrej Kiska.slovakia flag

Fico won 28.0% of the vote and Kiska took 24.0% — both contenders were expected to finish in the top two spots and advance to the final round.  The big surprise in Saturday’s election, however, was the strength of third-place finisher Radoslav Procházka, a Christian democratic independent who won 21.2% of the vote.  Milan Kňažko, an actor, also a Christian democrat, and a top Slovak leader of the 1989 Velvet Revolution, won 12.9% of the vote.

The results mean that Fico (pictured above) will face a very tough time winning an absolute majority against Kiska in two weeks’ time.

The outcome of the election itself isn’t as significant as the surrounding context.  Slovakia’s presidency is essentially ceremonial, though the president formally nominates the prime minister and some members of Slovakia’s constitutional court and other judicial offices.  Though the president can veto routine bills passed by the unicameral Národná rada (National Council), a simple majority of the National Council can override the presidential veto.

That means that the Slovak presidency is much more like the ceremonial German presidency instead of the truly powerful French presidency — and even, from a constitutional perspective, weaker than the Czech presidency.

Accordingly, the election is important for two reasons.  First, the election has now become a referendum on Fico and his governing center-left party, Smer – sociálna demokracia (Direction — Social Democracy).

Second, if Fico wins, his elevation to the presidency will necessitate the selection of a new prime minister and government.  Continue reading Fico, Kiska advance to Slovak presidential runoff

Sobotka turns to forming government after troubling internal ČSSD revolt

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Normally, party leaders face the boot when they lose elections, not after they win them.czech

But that’s what happened in the Czech Republic, when the center-left Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) narrowly topped the country’s parliamentary elections in late October with just over 20% of the vote.

Though the Social Democrats won the election, they took just 50 out of 200 seats in the Poslanecká sněmovna (the Chamber of Deputies), the lower house of the Czech parliament, and only nearly edged out a new populist, anti-corruption, business-friendly party, the Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens), founded just two years ago by wealth businessman Andrej Babiš.

That left the leader of the Social Democrats, Bohuslav Sobotka, in a difficult position.  The fractured result means that the Social Democrats will have to find at least another 50 deputies in order to govern — and despite the willingness of the Social Democrats to work alongside the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) for the first time in the post-Soviet era, the 33 seats that the Communists won won’t alone be enough to float a Social Democrat-led government.

But what left his leadership truly in question was a split between two wings of his party, a pro-Sobotka wing that hopes to keep its distance from the Czech Republic’s new president, Miloš Zeman, and a pro-Zeman wing that seeks closer collaboration between the two.  Zeman led the Social Democrats over a decade ago, and he served as Czech prime minister from 1998 to 2002.  A falling-out with the ČSSD leadership in the mid-2000s, however, caused Zeman to quit the Social Democrats and form a new party.

Zeman triumphed in his own right in the January 2013 presidential election — the first such direct election in Czech politics — and has spent the greater part of the year trying to muscle even more power for the Czech presidency at the expense of the parliamentary government.

So almost immediately following the election, Zeman (pictured above, left, with Sobotka) and top members of the pro-Zeman wing of the Social Democrats, including the party’s deputy leader Michal Hašek, held a secret meeting.  That preceded a call for Sobotka to step down as leader on the basis that Sobotka’s personalized, centralized campaign led to a poorer-than-expected result.

The ‘coup’ soon fell apart, though — Hašek and other participants in the secret meeting with Zeman lied about it, Sobotka rallied his supporters  against Zeman’s interference in internal party affairs, Czech overwhelming blamed Hašek for causing political instability and so, for now, Sobotka remains leader and Hašek has stepped down as deputy chair.

Sobotka won a battle, but it’s far from clear that he’ll even be the next prime minister.  Continue reading Sobotka turns to forming government after troubling internal ČSSD revolt

Czech election results: a fractured and uncertain Chamber of Deputies

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In September, voters in some of Europe’s most economically stable countries (Germany, Austria and even Norway) happily turned out to support their incumbent governments.  But in October, the Czech Republic’s election demonstrates that most of Europe remains under incredible social, economic and political stress.czech

Czech voters selected members to the lower house of the Czech parliament between two days of voting on Friday and today.  The result is a fragmented mess — it’s the most fractured election result since the May 2012 Greek parliamentary election, which resulted in a hung parliament and necessitated a second set of elections in Greece just a month later.

Here are the results:

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Seven different parties — ranging from free-market liberals to communists to political neophytes — won enough votes to gain seats in the 200-member Poslanecká sněmovna (the Chamber of Deputies), but it’s not clear who will be able to form a government.  Voters clearly rejected the previous center-right government’s approach to austerity and budget discipline, but split over what they want to replace it.  Turnout fell below 60% for the first time in over a decade.

In purely political terms, the result gives even more power to Czech president Miloš Zeman (pictured above), who came to office after winning the country’s first direct presidential election in January.  On the list of ‘winners’ and ‘losers’ in this weekend’s election, perhaps no one is a greater winner than Zeman, who is entitled to appoint the prime minister and therefore, will shape the first steps in the coalition negotiations.

Since taking office, Zeman has pushed to empower the Czech presidency at the expense of the Czech parliament.  After the country’s center-right government fell earlier this summer, Zeman appointed Jiří Rusnok as his hand-picked technocratic prime minister, but Rusnok’s (and Zeman’s) inability to win a vote of confidence led to this weekend’s snap elections.  Rusnok has served as a caretaker prime minister for the past three months, and he could wind up serving quite a while longer if no governing coalition can be formed.

The center-left Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) technically won the election — but just barely, and with far less support than polls showed just a month ago.  Despite winning more votes than any other party, the Social Democrats won just one out of every five votes, and it’s the party’s worst result in two decades.  It’s not necessarily clear that the party’s leader, former finance minister Bohuslav Sobotka, will even have the chance to form a government.  There’s simply no credible case that the Social Democrats have a mandate for much of anything.

Though Zeman, a Social Democratic prime minister between 1998 and 2002, broke away from the Social Democrats only in 2007, the party remains divided over the extent to which it wants to associate with Zeman now that he holds the Czech presidency.  What’s certain is that the poor result will weaken Sobotka, who leads the anti-Zeman wing of the party.  That means Zeman could bypass Sobotka and appoint a friendlier Social Democrat as prime minister, such as deputy leader Michal Hašek or perhaps Jan Mládek, who was widely tipped to become the next finance minister.

The real winner in today’s election is the Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens), founded in 2011 by millionaire Andrej Babiš, which nearly overtook the Social Democrats in terms of support — they will hold just three fewer seats than the Social Democrats in the new Chamber of Deputies.  Babiš is one of the wealthiest businessmen in the Czech Republic, and he’s led a ‘pox-on-all-your-houses’ campaign that rejects the mainstream Czech political elite as corrupt and dishonest.  Babiš owns founded Agrofert, originally a food processing and agricultural company, but now a conglomerate that’s the fourth-largest business in the Czech Republic.  Though his platform is relatively nebulous, he’s called for reforms to reduce corruption and end immunity for politicians from prosecution.

Think of Babiš as a cross between former Italian prime minister Silvio Berlusconi and Georgian prime minister Bidzina Ivanishvili, perhaps, and think of ANO as a more business-friendly version of Beppe Grillo’s Italian protest group, the Five Star Movement.  Given Babiš’s recent effort to buy a top Czech media company, the comparisons to Berlusconi have become particularly sharp:

A Czech tabloid recently nicknamed Andrej Babis, the new star on the Czech political scene, “Babisconi.” But, when compared with Italy’s Silvio Berlusconi, he quips: “I have no interest whatsoever in underaged girls.”

In third place is the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia), which won about 15% of the vote, the party’s second-best result since the fall of the Soviet Union.  The party is the heir to the old Communist Party of Czechoslovakia, which governed the country from 1968 until 1990 as a Soviet-aligned, one-party state.  Though the Communists have moderated their approach somewhat in the 21st century, and though they were expected to participate in a Social Democratic-led government, the party remains unapologetically communist (unlike other former eastern far-left parties, such as Die Linke in Germany, which espouse a more moderate form of democratic socialism).  Given that the base of the Czech Communists was once older, rural voters, its comeback today says much about the economic despair in the Czech Republic these days.    Continue reading Czech election results: a fractured and uncertain Chamber of Deputies

Photo of the day: Flipping the bird to the Czech Republic’s president

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Just a couple of months after social democratic chancellor hopeful Peer Steinbrück flipped the bird on the cover of a top German news magazine, the middle finger is back at the heart of a European election campaign.czech

With the Czech Republic set to vote on Friday and Saturday in parliamentary elections, artist David Černý erected a 30-foot-tall purple hand with an outstretched middle finger and is floating it down the Vltava that divides Prague, the capital of the Czech Republic, pointed toward the presidential palace and Czech president Miloš Zeman:

Mr. Cerny said the monumental hand with its 16-foot-long outstretched middle finger, placed on a float facing the castle, was a “scream of alarm” against the state of politics in the Czech Republic, endemic corruption and Mr. Zeman, a former leftist prime minister, whom he accused of becoming intoxicated with power.  He said the sculpture, which he gave an unprintable title, was also aimed at the country’s Communist Party, which could gain a share of power in the coming elections for the first time since the revolution that overthrew communism more than two decades ago.

“This finger is aimed straight at the castle politics,” Mr. Cerny said by phone from Prague, the Czech capital. “After 23 years, I am horrified at the prospect of the Communists returning to power and of Mr. Zeman helping them to do so.”

Here’s a longer look at the circumstances leading up to the weekend’s snap elections.

Photo credit to Michal Cizekmichal/AFP/Getty.

 

New Czech party hopes to ride anti-corruption momentum to election gains

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It’s been a tumultuous year in Czech politics — a surveillance scandal involving the prime minister’s love triangle brought down the government, a power-hungry president elected in the first direct presidential election earlier this year is working to claw power away from the parliament, and what’s left of the Czech right boils down to a contest between an eccentric Bohemian aristocrat and a multi-millionaire entrepreneur. czech

Though it sounds like the long-lost plot of a Leoš Janáček opera, it’s the backdrop to this weekend’s parliamentary elections, which should be no less dramatic than the events that shaped them.

What was once expected to be an easy victory for the country’s main center-left party, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) now looks it will be a less dominant victory — so much that the Social Democrats are no longer considered a lock to lead the next Czech government.  It’s the latest twist in a series of turns that could have major consequences for the economic and political development of the Czech Republic (or ‘Czechia‘ as its current president wants to call it) and its 10.5 million residents, to say nothing of the future expansion of the eurozone within central and eastern Europe. Continue reading New Czech party hopes to ride anti-corruption momentum to election gains

Czech parliament dissolved, October elections likely to strengthen ČSSD, Zeman

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In a widely anticipated move, the Czech parliament voted to dissolve its lower house yesterday, clearing the way for fresh elections in October and ending what had been a constitutional battle between president Miloš Zeman and his opponents since the collapse of former prime minister Petr Nečas over a corruption and surveillance scandal. czech

In a blow to Nečas’s Občanská demokratická strana (ODS, Civic Democratic Party), its one-time ally Tradice Odpovědnost Prosperita 09 or ‘TOP 09′ (Tradition Responsibility Prosperity 09), a liberal party led by former foreign minister Karel Schwarzenberg joined with the Czech Republic’s center-left parties to dissolve the 200-member Poslanecká sněmovna (Chamber of Deputies).

Zeman is likely to announce elections for October 25-26 and a formal date is expected by the end of the week.

Polls show that the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) holds a wide lead going into the elections, which means that its leader Bohuslav Sobotka (pictured above) is widely favored to become the next prime minister of the Czech Republic.  The Social Democrats outpoll each of the Civic Democrats, TOP 09 and the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) by something like a 2:1 or 3:1 margin in most surveys of voter opinion.

Even before the Nečas government fell, however, the Civic Democrats had become extraordinarily unpopular due to the poor performance of the Czech economy and the government’s push to raise taxes and cut spending — a familiar story throughout much of Europe these days.  The Social Democrats are expected to campaign on a platform of spending more funds on infrastructure instead of further budget cuts, and they may be able to do so now that the Czech economy appears to be moving from recession to growth in the second quarter of 2013.  But because the Social Democrats have also committed to positioning the Czech Republic for membership in the eurozone by the end of the decade, their capacity for wide budget deficits will be constrained.

Here’s the most recent survey — an August 19 PPM Factum poll that understates Social Democrat support compared to most polls:

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Sobotka, a former deputy prime minister and finance minister, has ruled out a formal governing coalition that will include the Czech Communists, but even Sobotka even concedes that a potential Social Democratic government would depend on the Communists for support for the first time since the end of the Cold War, which will result in tricky negotiations with the largely pro-EU Social Democrats and the eurosceptic Communists.  But the high number of voters who remain undecided and support none of the major parties underlines the broad disillusionment among Czech voters for the entire political system.

Zeman initially appointed Jiří Rusnok as a caretaker prime minister in July, though Rusnok narrowly lost a vote of confidence earlier this month, leading to yesterday’s dissolution vote.  Zeman’s decision is widely viewed as an attempt to expand the influence of the Czech presidency vis-à-vis the Czech parliament — Zeman became president earlier this year after the first direct presidential elections in Czech history, and he has argued his direct mandate entitles him to a more sweeping role.  Despite the failure of the Rusnok government to win a confidence vote, Zeman has skillfully muscled his way to dominating Czech politics throughout the summer, though early elections hold risks for him as well.

Though Zeman easily took advantage of the collapse of the Civic Democrats, he faces a different and more difficult challenge with respect to the Social Democrats, a party he once led as prime minister from 1998 to 2002.  But Zeman left the Social Democrats in 2007 and he now leads a small splinter group which literally calls itself the Zemanovci, or ‘Zeman’s people.’  But Zeman’s small party seems unlikely to win the 5% support necessary to enter the Chamber of Deputies, the threshold required under the Czech electoral system, which relies solely on proportional representation to determine the lower house’s composition.

It makes the Zeman-Sobotka relationship the most important in Czech politics right now.   Continue reading Czech parliament dissolved, October elections likely to strengthen ČSSD, Zeman

Rusnok vote hardly a setback to Zeman’s long-term Czech presidential power grab

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Although it was caretaker prime minister Jiří Rusnok that lost today’s vote of no confidence by a margin of 100 to 93 in the Czech parliament, but the real loser is the Czech Republic’s new president Miloš Zeman — albeit only temporarily.czech

Zeman appointed Rusnok (pictured above) prime minister in late June after the collapse of the government of conservative prime minister Petr Nečas stemming from a sensational espionage and corruption scandal.  You might expect that, as in most parliamentary systems, Zeman would have appointed a replacement prime minister who comes from the party or coalition of parties that currently wields a majority.  Instead, he appointed Rusnok, an acolyte who served as Zeman’s finance minister from 2001 to 2002 and later as the minister of industry and trade under Zeman’s social democratic successor, Vladimír Špidla.

So what gives?

When Nečas resigned, it was a stroke of luck for Zeman, who took over as president only in March 2013 and who is pushing to consolidate more power within the presidency at the expense of the Czech parliament.  Though both of his predecessors — playwright and freedom fighter Václav Havel nor euroskpetic Václav Klaus — played outsized roles as president due to their gravitas and outspokenness, Zeman argues that his direct mandate from the Czech people should provide him a more hands-on role in setting Czech policy (Before January’s direct election, the Czech president was indirectly elected by the parliament).  By appointing his own economic adviser as prime minister, Zeman could immediately begin to shape the Czech government according to his own prerogative.

But Zeman’s presidential power grab is a longer-term project than just the Rusnok vote today, and though his attempt to install Rusnok failed, it served a very important purpose for Zeman by bringing the chief center-left party, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party), more fully under his influence.  With polls showing that the ČSSD is set to win the next Czech parliamentary election, that’s arguably an even important goal for Zeman’s long-run designs than installing Rusnok as prime minister.

Continue reading Rusnok vote hardly a setback to Zeman’s long-term Czech presidential power grab

Rudd returns as prime minister of Australia in advance of September election

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There’s not a single week that goes by in world politics that’s not amazing, and being away this week in France for a wedding proves it.

We’valbaniae seen the longtime prime minister of Albania, Sali Berisha, concede defeat to the Albanian Socialist party leader Edi Rama after Sunday’s election (read Suffragio‘s preview of the June 23 Albanian election here), which apparently won 84 seats to just 56 for Berisha’s center-right Democratic Party, a strong majority in the country’s unicameral parliament.  I’ll certainly have a bit more to add later in July when I’m back about how this could boost Albania’s chances for European Union membership — and I think it does.  Rama’s pulled his party out of its communist roots into the social democratic center, and he’s now gunning to pull Albania ever closer to the center of Europe, so he’ll start off as prime minister with a strong start.

Wczeche’ve also seen the appointment of a new prime minister of the Czech Republic in Jiří Rusnok, an economic adviser to the country’s new president Miloš Zeman, which raises even greater questions about Zeman’s push to become the country’s most powerful public servant following the resignation of the country’s prime minister Petr Nečas earlier this month.  Nečas, prime minister since 2010 and already unpopular as the leader of the center-right Civic Democratic Party over austerity measures and a flatlining economy, couldn’t withstand charges of eavesdropping against his chief of staff, with whom he is linked romantically.  In naming Rusnok, though, Zeman is indicating that he will try to take a very large role in policymaking, though the Civil Democrats want to appoint popular parliamentary speaker Miroslava Nemcova as the country’s first female prime minister and Zeman’s former colleagues, the Social Democrats, want to hold new elections.  More on this soon, too — it’s going to set the course of the relationship between the Czech president and prime minister for years to come, just over 100 days after Zeman took office following the first direct election of a Czech president.  It’s a move that The Economist called ‘Zeman’s coup,’ and that’s not far from the truth.

That’s all while the Turkish and Brazilian protests continue apace (more on that this week), while the world waits in anxiety to learn about the health of South Africa’s former president Nelson Mandela and after former Pakistani president Pervez Musharraf will be tried for treason by the new government of Nawaz Sharif, the U.S. Supreme Court effectively ruled in favor of full federal rights for same-sex marriage and overturned California’s ban on gay marriage.  Quite a week.

BAustralia Flag Iconut the most important news in world politics has come from Australia, where former prime minister Kevin Rudd (pictured above) has stunningly defeated Julia Gillard as the Australian Labor Party’s prime minister on a 57-45 leadership ballot — he’s already been sworn in.  More on that tomorrow too.  I’m pretty biased in favor of world heads of government named Kevin, but it’s not biased to say that Rudd’s sudden return as Australia’s prime minister transforms the September 14 election from an inevitable Labor loss into something much more competitive.  I’m on holiday, but I will hope to have some thoughtful analysis on what this means for Australia, Labor, the opposition Coalition, Rudd, Gillard, and September’s election within hours.

 

With Nečas out, the future of Czech government is in Zeman’s hands

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In his first 100 days in office, Miloš Zeman, the former social democratic prime minister who became the Czech Republic’s first elected president, made it clear that he intends his role to be much more powerful than a merely ceremonial head of state, pursuant to a Czech constitution that gives somewhat more power to the presidency than in neighboring countries like Germany, Poland or Italy.czech

But with the resignation of prime minister Petr Nečas, Zeman has an opportunity to imprint his vision of government on the Czech Republic beyond what he might have expected when he was elected in January 2013 over the aristocratic center-right foreign minister Karel Schwarzenberg.

Nečas’s resignation on Monday capped a fast-moving weeklong drama in Czech politics that has plunged the country of 10.5 million citizens into a period of uncertainty.

The crisis began last week with an unprecedentedly wide police raid of government offices that resulted in the arrests of eight government officials, including Nečas’s chief of staff, Jana Nagyová.  Though corruption has long been issue in Czech government, it often goes unpunished, and when corrupt officials are charged, they are rarely arrested in such a sweeping and high-profile manner.  Milan Kovanda, head of Czech military intelligence, and his predecessor Ondrej Páleník, were both arrested as well.

Nečas (pictured above) announced last week that he is divorcing Radka Nečasová, his wife of three decades and mother of his four children. But he has long been rumored to have had a romantic relationship with Nagyová, who is accused of bribery and abuse of power for allegedly having military spies follow Nečas’s wife.  The widespread belief that Nagyová is believed to have committed crimes that are associated with her relationship with Nečas made his position as prime minister increasingly difficult.  That, in turn, led to Nečas’s capitulation on Monday when he announced he would step down as prime minister and as leader of the Czech Republic’s main center-right party, the Občanská demokratická strana (ODS, Civic Democratic Party).  Nečas will remain as a caretaker prime minister until a new government is formed.

The center-right ODS has governed in coalition with Schwarzenberg’s liberal Tradice Odpovědnost Prosperita 09 or ‘TOP 09′ (Tradition Responsibility Prosperity 09) and with various members of a third, minor conservative party, Věci veřejné (VV, Public Affairs), since the May 2010 election, though the government nearly lost power when its smallest partner Public Affairs nearly imploded in 2012 over its own corruption scandals.  Despite Nečas’s resignation, Schwarzenberg’s allies want to try to form a new government under deputy ODS chairman Martin Kuba, the current trade and industry minister, that will continue to govern through the end of the current parliamentary term in May 2014.

ČSSD leader Bohuslav Sobotka, however, is calling for early elections and has promised that any new ODS-led government will meet with a vote of no confidence that Kuba is not certain to win.

The decision rests entirely in Zeman’s hands — he can give Kuba a mandate to form a new government, he can call early elections, or he could try to give the mandate to Sobotka or, more likely, a technocratic government that would be expected to do Zeman’s bidding for the next 11 months.

Though ODS holds 53 seats and TOP 09 holds 41 seats, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party), with 56 seats, has the greatest number of seats in the 200-seat Poslanecká sněmovna (Chamber of Deputies), the lower house of the Czech parliament.  Zeman, a former  ČSSD leader and prime minister from 1998 to 2002, broke with the ČSSD in 2009, and the ČSSD sponsored an alternative candidate for president earlier this year in Jiří Dienstbier Jr., a young senator, rising star and son of a famous Czech dissident.  But since becoming president, Zeman has taken steps to realign himself with the ČSSD, speaking to the party’s annual congress in March 2013 and otherwise worked to bridge the gap between with the current ČSSD leadership.

Though Schwarzenberg emerged as a surprisingly strong contender for the presidency in January, the ODS candidate finished in eight place with less than 2.5% of the vote in the first round of the presidential election.  The party remains relatively unpopular after implementing an all-too-familiar austerity program of tax increases, budget cuts and reductions in government services alongside an economy that contracted by an estimated 1% in 2012 and that features a rising unemployment rate that’s currently at 7.3%. The fantastic scandal over the past week that’s now ended Nečas’s career came when the ČSSD was already in a strong position in advance of the next parliamentary elections — polls show the ČSSD with a wide lead.  One poll last month gave the ČSSD 24% support, with the more leftist (though increasingly a potential ČSSD coalition ally) Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) far behind in second place with just 10.5% support, with TOP 09 at 9.5% support and the ODS with 9% support.

Zeman, who passed the 100-day mark of his presidency just last week, has taken an aggressive posture as president, convinced that the fact of his direct electoral mandate (unlike past presidents Václav Havel and Václav Klaus, who were elected indirectly by the Czech parliament) gives Zeman more authority to assert himself over the Czech government.  He immediately set out to boost Czech ties with the European Union by flying the EU flag at Prague Castle, the presidential residence, and signing amendments to the EU Treaty of Lisbon, both of which marked a 180-degree turn from the relatively antagonistic EU policy of Klaus, his immediate predecessor.  He’s also tangled with Schwarzenberg over the right to name the country’s ambassadors.

Václav Klaus, fresh from Czech presidency, discusses eurozone in Washington

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Just three days after leaving the Czech presidency, Václav Klaus spoke at the Cato Institute in Washington earlier today — Klaus is joining Cato as a senior distinguished fellow this spring.czechEuropean_Union

Klaus, who stepped down after a decade in office, didn’t break much new ground — his remarks were essentially everything you’d expect from the famously euroskpetic former president, who was the last European Union head of state to sign the Treaty of Lisbon (and quite reluctantly, at that).

The great eurozone fight

In brief, Klaus has long argued that the eurozone is not an optimal currency zone, it’s a project that was implemented without sufficient democratic input from everyday Europeans, and the economic costs of monetary integration and centralization far outweigh the benefits, and those costs have become increasingly evident from the economic pain suffered today in Greece, Spain, Italy and throughout Europe.

Klaus’s diagnosis has become fairly uncontroversial — both on the left and the right, and for both intergovernmentalists and neo-functionalists alike.  A lot of European federalists would agree that the European Union needs more robust democratic institutions at the supranational level.  Many economists agree that the one-size-fits-all monetary policy has been incredibly harmful to many countries in southern Europe since 2008, and the painful internal devaluation forced upon many countries in the European periphery, from Latvia to Greece, has been a needless exercise in poor economic policymaking.

But whereas many economists would argue that the solution lies in greater fiscal harmony (especially through fiscal transfers from wealthier regions to poorer regions), looser monetary policy, a eurozone-wide borrowing capacity, debt forgiveness and a doubling-down on the more long-standing commitment to the free movement of goods, services and people throughout the European Union, Klaus’s solution is to unwind the eurozone.

Klaus would rather see a way for Greece — and other troubled economies — to simply exit from a eurozone that’s delivered now nearly half a decade of GDP contraction, painful downward pressure on income, and widespread unemployment and social rupture.

That’s not a crazy idea economically — if Greece could leave the eurozone tomorrow (or if Greece simply went bankrupt, thereby essentially forcing Greece out of the eurozone), it could conceivably pursue a much more aggressive monetary policy, devalue its currency, and take other steps to make its exports more competitive in global markets once it’s no longer yoked to a monetary policy that’s better suited for, say, the German economy.

But that’s not the entire story.  Greece might also suffer extraordinarily in the short-run while it makes that transition — starting with how it would reintroduce the drachma and how it would even finance basic governance outside the current eurozone regime, forcing perhaps even more austere budget-cutting in a country where the social safety net is already tattered.

And those are just the problems inside Greece — though the Greek economy is just a fraction of the European economy, it could set off a chain reaction of fear, bank runs and deep recession throughout the eurozone as investors pull out of not only the peripheral economies, but also out of the entire eurozone.  How would a massive Greek devaluation affect Cyprus? Would Spain and Italy withstand the inevitable bank runs and currency flight? The chain reaction of unraveling one of the world’s foremost reserve currencies could well be catastrophic.

Looking to national parallels: the Czechoslovak breakup and German reunification

Klaus related the current monetary union to the breakup 20 years ago of Czechoslovakia into two separate nations — a process that Klaus said was painful though necessary (though the Slovak economy is doing much better these days than the Czech economy).  But Greeks might be troubled by the more painful example of the breakup of the Yugoslav federation and the Soviet Union, both of which were also monetary unions as well as political unions.  The breakup of the ‘ruble zone’ led to massive hyperinflation throughout the Soviet Union and an economic shock that cut standard of living in half.  There’s simply no way to know what forces could be unleashed by the process — no matter what anyone says, there’s not a precedent for unraveling even a tiny part of the world’s largest currency union in an orderly fashion.

I would have liked to hear, in particular, Klaus’s thoughts on another contemporary experiment in currency union: German reunification.

Continue reading Václav Klaus, fresh from Czech presidency, discusses eurozone in Washington