Tag Archives: EU

Montenegro

Montenegro election results (that other Sunday election)

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It’s far away from the Baltic States, but another peripheral European country — this one in the Balkans — also held parliamentary elections on Sunday.

Milo Đukanović, the leader of the ‘Coalition for a European Montenegro’ (Koalicija za Evropsku Crnu Goru) looks likely to extend his coalition’s 23-year rule over the country, extending from before the time that Montenegro voted in a referendum in 2006 for full independence from a political union with Serbia.  Broadly speaking, the election will not be a significant turning point for the development of more mature democratic or governance institutions in Montenegro, but will nonetheless guarantee the country’s slow move toward fuller integration into the European Union.

The ‘European Montenegro’ coalition won around 45.4% of the vote, bringing it 39 seats in the 81-seat Skupština Crne Gore, Montenegro’s unicameral parliament.  A conservative opposition ‘Democratic Front’ coalition, under the leadership of Miodrag Lekić, a former ambassador to Italy, won just 23.9% (20 seats).  Although the governing coalition will be stripped of an absolute majority, it is expected to continue to govern with the support of regional legislators.

Đukanović himself is the leader of the largest party in the ‘European Montenegro’ coalition, the Democratic Party of Socialists (DPS, Demokratska Partija Socijalista Crne Gore), the successor what used to be the Montenegrin branch of the Yugoslav Communist Party.  Đukanović has served as prime minister of Montenegro from 1991 to 1998, and again from 2003 to 2006 and 2008 to 2010.  He served as Montenegro’s president from 1998 to 2002.

In that time, Đukanović has gone from a one-time ally of former Serbian president Slobodan Milošević to a full proponent of EU membership for Montenegro.  Đukanović broke with Milošević in 1996, amid the aftermath of gruesome ethnic-based in the Balkans in the early 1990s and began to pursue independence for Montenegro, a small country of just 625,000 people that’s nudged on the Adriatic and borders Croatia, Bosnia and Herzegovina, Serbia, Kosovo and Albania.

Montenegro seems very likely to follow Croatia into the European Union (Croatia is set to acceed on July 1, 2013), and it is significantly further along in its own accession process than either Serbia or Bosnia and Herzegovina.  Đukanović stepped down in December 2010 when the EU granted Montenegro official candidate status, and a new government headed by former finance minister Igor Lukšić was appointed.

Đukanović may well try to form a new government as prime minister again following Sunday’s result or he may try to run for president in 2013.  In either even, he remains the leader of the DPS and, with or without government office, the key figure in Montenegrin politics. Continue reading Montenegro election results (that other Sunday election) →

Ireland

Ireland votes ‘yes’ to fiscal compact in referendum

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

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

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

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

Ireland

Irish set to approve fiscal compact in Thursday referendum

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Ireland’s feisty voters, which have developed an art form out of defeating European Union treaties, still seem likely to support the fiscal compact treaty in Thursday’s referendum:

Polls show the ‘yes’ vote in the lead — the latest Irish Times poll shows 39% in favor, 30% opposed, with 22% undecided and 9% not voting.  Other polls have shown even strong support for the ‘yes’ camp.

After the Sturm und Drang of May 2012’s electoral wave, which has seen voters support anti-austerity politicians from Germany to Greece, the fiscal compact seems to have less momentum than ever.

So it would be a plucky twist of fate if Ireland, which has become the bête noire of EU treaty making — its constitution provides that a EU treaty is an amendment of the Irish constitution and, consequently, must be approved in a referendum — gives a thumbs-up to a fiscal compact that might never go into law EU-wide and would result in a loss of Irish sovereignty with respect to its own fiscal policymaking.

Furthermore, over the course of Ireland’s four decades in the EU, Irish voters have voted on six treaties, and in each case, the initial pro-treaty vote has decreased for each new treaty:

In each of the last two efforts, for the Treaty of Nice in 2001 and the Treaty of Lisbon in 2008, Irish voters initially defeated the treaty, Irish negotiators worked to attain new concessions from the EU and each treaty was subsequently ratified in a second referendum.

The fiscal compact, cobbled together by Merkel and then-French president Nicolas Sarkozy in December 2011 amid soaring bond prices for Spanish and Italian debt, would limit each EU member state to a structural budget deficit of just 0.5% of GDP.  That target seemed unrealistic in November, but seems even more so today, with many European economies still stagnant (or in recession).  Newly elected French president François Hollande has called for revisiting the terms of the fiscal compact during and after his election.

So the final ratification of the fiscal compact is far from certain, with or without Ireland.  As the UK and the Czech Republic opted out of the fiscal compact, the fiscal compact is not, as a technical matter, a formal EU treaty.  Accordingly, it needs ratification from just 12 eurozone members before January 1, 2013 to go into effect.

As of today, it has received just three conditional ratifications. In Slovenia and Portugal, national parliaments have approved the fiscal compact, but the ratifications are not formally complete without presidential approval.  The only other country to ratify the fiscal compact is Greece, whose May parliamentary elections were so inconclusive that the country must hold a second set in June, which could very well result in electing Europe’s most anti-austerity government.

So why, in the face of so many reasons to junk the fiscal compact, which may not even be ratified by the rest of Europe, are Ireland’s voters set to approve it on Thursday? Continue reading Irish set to approve fiscal compact in Thursday referendum →

Kosovo, Serbia

How will Nikolić presidency affect Serbian diplomacy with Kosovo? (and with Russia and the EU?)

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With recently defeated Serbian president Boris Tadić likely to become prime minister, and with his center-left Democratic Party (Демократска странка / DS) almost certain to control the government, as it has since 2000, Serbia’s domestic policy is unlikely to change much (somewhat curiously, as I discussed earlier), despite a very different president in Tomislav Nikolić.  

But on foreign policy, Nikolić will have a more amorphous — and powerful — hand, as Serbia begins to mark the first transfer of real power from pro-Western, liberal progressive forces that have controlled its government in the 12 years since Serbia was the chief pariah state of Europe.  The one-time ultranationalist Nikolić will have won the presidency just two months after Serbia became an official candidate for membership in the European Union and just two years after Kosovo — populated mainly with ethnic Albanians, but also a significant population of Serbs in the north — declared its independence (yet to be recognized by the United Nations) in 2010.

Today, during the campaign, and really, ever since his departure in 2008 from the more nationalist Radical Party, Nikolić has emphasized that his election would result in continuity for Serbia’s European integration.  But only four years ago, as The New York Times notes in the lede of its profile on Serbia’s new president, Nikolić said it would have been better for Serbia to become a province of Russian than to become a member of the EU.

Indeed, it seems difficult to imagine that Serbia will not have a more intimate relationship in the next four years with Russia: Nikolić will travel to Moscow next week to attend the United Russia congress and to meet with newly inaugurated Russian president Vladimir Putin, a sign that’s already being seen as a rare diplomatic coup for Russia. Continue reading How will Nikolić presidency affect Serbian diplomacy with Kosovo? (and with Russia and the EU?) →

European Union, Greece

Worries about Greece’s immediate eurozone exit are extremely overblown

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Earlier this week, as the chances of a pro-bailout Greek coalition fell apart, you would think that the failure to cobble together a coalition was tantamount to Greece withdrawing from the euro and reintroducing the drachma.

Sure enough, signs of a “bank jog” emerged this week, as Greeks pulled out over €1.2 billion in deposits from Greek banks on Monday and Tuesday amid the political tumult.  An article in Der Spiegel declared that it is time for Greece to leave the euro and even Christine Lagarde, managing director of the International Monetary Fund said that, although it would be “quite messy,” it is time to start thinking about how to engineer a Greek exit from the euro.

But with an interim caretaker prime minister, Panagiotis Pikrammenos, being sworn in today, and new elections scheduled for just over a month from today, the warnings of Greece’s immediate exit from the eurozone are extremely overblown. Continue reading Worries about Greece’s immediate eurozone exit are extremely overblown →

Ireland

Pro-referendum forces maintain momentum in Ireland

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For me, one of the key questions about the recent French and Greek elections has been how those results would play in Ireland — would a firm anti-austerity wave across the continent make Irish voters more or less likely, in the upcoming May 31 referendum, to endorse the December fiscal compact agreed among all of the European Union members (except the United Kingdom and the Czech Republic)?

Surprisingly, perhaps, given the increasingly cynical response of Irish voters in these EU treaty referenda, the “Yes” vote camp still seems to be maintaining (or even strengthening) its lead over the “No” vote.  The latest poll shows 53% in favor of the treaty (an increase of 6% over the prior poll), with only 31% opposed.

The momentum comes even as German chancellor Angela Merkel finds herself increasingly on the defense against an emergent pro-growth (and anti-austerity) wing from both the periphery — e.g. Greece — and the heart — e.g. France, North Rhine-Westphalia — of the EU.

Say what you will about the current Eurocrisis, it is fascinating to watch the increasingly interlinked politics among the EU member states.  For the first time in EU history, notwithstanding decades of (politically meaningless?) European parliamentary elections, a bona fide European politics has emerged in the austerity/growth debate.  It transcends the traditional right/left axis of national politics and the very existential debate of federalism vs. intergovernmentalism.

Yesterday, Irish finance minister Michael Noonan argued that supporting the fiscal compact would send a message to the EU that Ireland is serious:

Mr Noonan said adopting the treaty will send a signal out to Europe that the Irish are serious, committed people, and committed to the repair job required for the economy.

If we vote No, he said, Europe will move on and we will be left with less than full membership of the eurozone.

To laughter from the audience at an economic summit organised by Bloomberg in Dublin this morning, Mr Noonan said he does not want Ireland to be a pavilion member of the eurozone “where you are allowed drink in the bar, but not play the course”. Continue reading Pro-referendum forces maintain momentum in Ireland →

European Union, France, Germany, Greece, Ireland, The Netherlands, United Kingdom

Three elections — and three defeats — for EU-wide austerity

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The concept of a ‘democratic deficit’ has long plagued the European Union — the EU’s history is littered with grand, transformative schemes planned by EU leaders that voters have ultimately rejected as too sweeping.  As recently as 2005, French and Dutch voters rejected the proposed EU constitution, smacking the EU elite for getting out too far in front of an electorate that clearly did not approve.

Sure enough, the story of the last three days — in the UK, in France and in Greece — will go down in EU history as a similar pivot point against German chancellor Angela Merkel’s attempt to impose strict fiscal discipline across the continent, even as additional electoral hiccups await in the North-Rhine Westphalia state elections later this week, the Irish referendum on the fiscal compact later this month and French and Dutch parliamentary elections due later this summer.

French president-elect François Hollande will now immediately become the face of the EU-wide opposition to austerity and is expected to challenge Merkel with a view that advocates more aggressive spending in a bid to balance fiscal responsibility with the promotion of economic growth — a distinct change in Franco-German relations after the ‘Merkozy’ years.  In his victory speech, Hollande called for a ‘fresh start for Europe’ and laid down his gauntlet: ‘austerity need not be Europe’s fate.’

It is an incredible turnaround from December, when Merkel and deposed French president Nicolas Sarkozy single-handedly pushed through the fiscal compact adopted by each of the EU member states (minus the UK and the Czech Republic), which would bind each member state to a budget deficit of no more than just 0.5% of GDP.  The treaty followed in the wake of the latest eurozone financial crisis last November, during which both the governments of Silvio Berlusconi in Italy and Georgios Papandreou in Greece fell, to be replaced by Berlin-approved technocratic governments, each tasked with the express purpose of making reforms to cut their governments’ respective budgets.

Continue reading Three elections — and three defeats — for EU-wide austerity →

Ireland

Irish referendum to be held May 31

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Mark your calendars: the Irish referendum on the European Union fiscal compact will take place on May 31.

If the Merkel-led austerity doesn’t take any hits following the French presidential election or the Greek parliamentary elections, it will still face the gauntlet of a feisty Irish electorate that might not be too keen on institutionalizing budgetary limits into the fabric of the EU, although the threats lurking behind any “No” vote — no further access to EU bailout money and higher interest rates — might well be more disastrous.

 

Ireland

One strategy for the Irish vote: blackmail

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The economists have spoken: Irish voters should vote “yes” on the fiscal compact later this spring or else.

From a report from Ireland’s largest stockbroker comes the following:

A No vote would cast doubt over Ireland’s commitment to the euro and could trigger a ratings downgrade which would destroy our chances of returning to the bond market for the foreseeable future, he added. Yields on Irish bonds are likely to rise ahead of the vote, which will be held some time this year.  Bond yields would rise sharply if the people were to vote No but fall if the people were to vote Yes.

The gauntlet has been laid down — I expect this refrain to become a steady drumbeat in advance of the referendum.

 

Ireland

Kenny to target Irish referendum in late May

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Irish Taoiseach Enda Kenny is eyeing late May for a referendum to approve December’s European Union-wide fiscal compact — although we may not know the exact date until later this month, per The Irish Times.

Timing is crucial — right now, polls show Irish voters in favor of the treaty, but two months is a long time for opponents to foment opprobrium against a treaty that would place a fiscal straightjacket on national finance ministries by limiting signatories to an annual budget deficit of just 0.5% of nominal GDP.

So the sooner that the referendum is held, it is thought, the better for treaty supporters.  If held in late May, the vote would follow both rounds of the French presidential election, where François Hollande — an avowed opponent of austerity who has called for renegotiation of the terms of the fiscal compact — currently leads polls, as well as tentative Greek legislative elections planned for April.

An outcome that would jeopardize European unity in any of the three could spook European investors.

Although the fiscal compact — not technically an EU treaty after the UK and the Czech Republic opted out — will go into effect with the approval of just twelve countries, Europe will still pay nervous attention to the vote.  The Irish referendum will be the only opportunity for a popular vote on the treaty across the EU, and so a stingingly public defeat would give other nations an excuse to opt out, or at least think twice about the treaty.  Ireland itself, already under the constraints of IMF- and EU-imposed fiscal austerity, is the recipient of bailout money to support its public debt.  An Irish defeat could jeopardize future bailout money and spark an investor crisis throughout the eurozone. Continue reading Kenny to target Irish referendum in late May →

France

Schengen silliness

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With French flags waving (as shown above) to the tune of La Marseillaise at a campaign rally in Villepinte on Sunday, French President Nicolas Sarkozy threatened to pull France out of the Shengen zone, calling for a French defense to the “European way of life.”

Don’t worry — you shouldn’t believe for a nanosecond that Sarkozy will ever take concrete steps to pull France out of the 25-member Schengen zone in a second term.

You should believe, however, that it’s the next logical step in a populist campaign to consolidate right-wing voters in advance of the first round of France’s presidential election.  Recall that Sarkozy opened his reelection bid with a call for a referendum on immigration.  Last week, he declared there were “too many foreigners” in France and called for the country to halve the number of immigrants permitted annually from 200,000 to 100,000.

The Schengen Agreement, signed in 1985 but which took effect in 1995, allows for free travel without internal border controls throughout the EU countries (except for Ireland and the United Kingdom), plus non-EU members Iceland, Norway and others.  Even the sovereignty-conscious Swiss are members as of 2008.

It’s the agreement that allows outsiders to visit any number of European countries (again, except for Ireland and the U.K.), while going through passport control and customs just once — at the port of entry.

Taken together with the EU Directive on services in the internal market, promulgated in 2006 with implementation taking effect in 2009, which aims to create a single market for services throughout the EU, Schengen is also the agreement that nudges freer movement of workers across the European continent, subject to the labor regulations of each member state.

In any context, Schengen must be counted as the chief achievements of the entire European project.

Continue reading Schengen silliness →

Ireland

Will the Irish referendum stop the latest EU treaty?

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It’s not as if the European Union needed to plan another landmine to explode the agreed “fiscal compact” from last December which, broadly speaking, would require EU countries to maintain a structural deficit of less than 0.5% of nominal GDP annually. 

With the anti-austerity candidate leading the polls in France and with Greek parliamentary elections scheduled for the spring, there is no shortage of political events that could cause yet another crisis in the eurozone.  And after so many countries (including Germany!) violated the 1997 Stability and Growth Pact’s budget deficit rule (no more than 3% of GDP) throughout the 2000s, you might remain skeptical that any country would hew for very long to a 0.5% budget rule.

So the last thing anyone in Brussels wanted to hear was Dublin’s insistence last week that the fiscal compact will require an Irish referendum prior to its ratification.

Yet last week, Irish Taoiseach Enda Kenny announced that, on advice from the Irish attorney general, Ireland will be required to hold a referendum on the fiscal compact treaty.  It was previously thought (hoped?) that an Irish referendum might not be necessary.  Given that British prime minister David Cameron announced that the UK would veto the amendment of existing EU treaties, and the decision of the Czech Republic not to join the final version, the treaty is not a formal EU treaty, but an intergovernmental treaty among the remaining 25 EU members.

Under Crotty v. An Taoiseach in 1987, the Supreme Court of Ireland decided that any significant changes to any EU treaties to which Ireland accedes require an amendment to the Irish constitution prior to ratification, and therefore subject to a referendum.

Currently, polls indicate that 60% of Irish voters support the treaty, but the referendum date has not yet been announced and opponents will have ample time to mobilize.

If you look at the trajectory of the first-shot Irish referenda on various EU treaties, you would not necessarily be optimistic:

Continue reading Will the Irish referendum stop the latest EU treaty? →

France, United Kingdom

Make that the Camerkozy campaign

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Just three months ago, the video shown above from yet another EU summit set tongues wagging on both sides of the English Channel: was French President Nicolas Sarkozy so angry with UK Prime Minister David Cameron that he’d brush past his outstretched hand?

Cameron had just exercised the United Kingdom’s first-ever veto of a European Union fiscal treaty that would have brought the EU countries into greater fiscal policy alignment (presumably toward more austerity, as favored by Cameron, Sarkozy and German chancellor Angela Merkel).  Although the remaining 26 EU countries signed up to a “compact” of the EU countries (sans the UK), the exercise of the veto was very much in keeping with the UK’s longtime role as Europe’s most stubborn citizen, much to the anguish of Sarkozy and the rest of Europe.

So it may be surprising to see that Cameron did not meet with frontrunning Parti socialiste presidential candidate François Hollande during his trip to London this week, and even more surprising to read Cameron’s very pro-Sarkozy statements to Le Figaro last week, in which Cameron made clear that he is strongly supporting Sarkozy’s reelection bid, with an endorsement that’s very nearly as strong as the endorsement Merkel provided earlier in February: Continue reading Make that the Camerkozy campaign →