Tag Archives: European Union

Would ‘lottocracy’ be a better form of government than democracy?

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Winston Churchill is attributed with the quote, ‘Democracy is the worst form of government, except for all those others that have been tried.’

But it’s William F. Buckley who said, ‘I am obliged to confess I should sooner live in a society governed by the first two thousand names in the Boston telephone directory than in a society governed by the two thousand faculty members of Harvard University.’

Alex Guerrero, assistant professor of philosophy, medical ethics and health policy at the University of Pennsylvania (and also a law school classmate of mine), thinks Buckley may have been on to something, and he makes the case for selecting representatives not by elections, but through a lottery system in Aeon today:

First, rather than having a single, generalist legislature such as the United States Congress, the legislative function would be fulfilled by many different single-issue legislatures (each one focusing on, for example, just agriculture or health care). There might be 20 or 25 of these single-issue legislatures, perhaps borrowing existing divisions in legislative committees or administrative agencies: agriculture, commerce and consumer protection, education, energy, health and human services, housing and urban development, immigration, labour, transportation, etc.

These single-issue legislatures would be chosen by lottery from the political jurisdiction, with each single-issue legislature consisting of 300 people. Each person chosen would serve for a three-year term. Terms would be staggered so that each year 100 new people begin, and 100 people finish. All adult citizens in the political jurisdiction would be eligible to be selected. People would not be required to serve if selected, but the financial incentive would be significant, efforts would be made to accommodate family and work schedules, and the civic culture might need to be developed so that serving is seen as a significant civic duty and honour.

At first read, it sounds like a nightmare out of an Arthur Miller play.  Three hundred random US citizens would congregate to tackle a discrete issue like climate change, health care reform, or immigration reform.

What’s so bad about democracy? 

Before you dismiss the idea outright, it’s important to bear in mind the long, long list of problems with elections, in their current form in the United States and in other mature democracies — and that’s saying nothing about the question of free and fair elections in countries where democratic institutions are less robust.  The business of policymaking of a typical 21st century government is typically too complex for direct democracy to thrive in most jurisdictions. The need to become informed about the nuances of even major policy decisions would quickly overwhelm all of us.  Experiments with direct democracy, through the proliferation of ballot initiatives to decide key issues, have worked better in some places (Switzerland) than in others (California).  The limitations of direct democracy have meant that, outside the classical era of Athenian democracy and a few referendum-driven jurisdictions, ‘democracy’ for most people today means representative democracy.  Voters elect legislators and executives on the basis of a plethora of policy positions.

Of course, by gaining efficiency, indirect democracies lose precision — voters will choose one candidate over another for many reasons, and no voter’s policy priorities may line up entirely with any candidate.

Moreover, we can see the other problems of representative democracy in modern US politics.  Marketing and advertising, since at least the onset of the television era, can now be more important than policy positions.  Accordingly, representatives spend more time today raising money from donors than tending to the business of lawmaking, undermining the one-person-one-vote principle that undergirds representative democracy.  As Alex notes, the current process is subject to all sorts of problems.  The influence of money and lobbyists can lead to agency and electoral capture.  Collective action problems are rife — interest groups who care deeply about an issue can skew policies to their favor, even at the expense of the widely dispersed gains that might otherwise accrue to the rest of the population.  Protectionism, tariffs and free trade is a classic example.

Gerrymandering, barriers to entry and the advantages of incumbency massively reduce competition within the political marketplace.  It’s left us with a system where, as Alex writes, ’44 per cent of US Congresspersons have a net worth of more than $1 million; 82 per cent are male; 86 per cent are white, and more than half are lawyers or bankers.’ It’s a system where Congressional reelection rates in the United States routinely exceed 90% — even in a massive ‘wave’ election like the 2010 midterms that saw a Republican wave, the reelection rate was still 85%.  Part of that you can blame on gerrymandering, but more so on the natural preferences and geopolitical distribution of urban and rural voters — and perhaps even more so on the US electoral system (i.e., single-member plurality districts instead of proportional representation).  

Tradition, financial and political infrastructure, a first-past-the-post electoral system and path dependence mean that, in the United States, two political parties reign supreme.  When those two parties agree on policy preferences, it means there’s effectively no competition within the political marketplace on many key issues — in the past three decades, this has included drug legislation, foreign policy, national security, military affairs, gun regulation, financial regulation, home ownership policy and other matters.  In many cases, the bipartisan consensus has turned out to be wrong.

Electoral competition, too, is rife with short-term thinking.  In a world where public servants are focused on reelection in two years (the US House of Representatives), four years (the US president) or six years (the US Senate), there will always be a temptation to focus on short-term benefits at the expense of long-term costs.  Say what you want about the People’s Republic of China, but the governing Chinese Communist Party has to contemplate long-term effects of its policies, because there’s no alternative party to blame.  In the US system, Democrats and Republicans can rotate in and out of office and blame each other for perpetuity.  Not so in China — the CCP has to own its policy decisions or face a massive popular revolt.

That all assumes, too, that voters make well-informed, rational decisions.  As Bryan Caplan argues in The Myth of the Rational Voter: How Democracies Choose Bad Policies, borrowing from the insights of economic theory, ‘democracy’ fails primarily due to irrational and ill-informed voters:

In the naive public-interest view, democracy works because it does what voters want.  In the view of most democracy skeptics, it fails because it does not do what voters want.  In my view, democracy fails because it does what voters want.  In economic jargon, democracy has a built-in externality.  An irrational voter does not hurt only himself.  He also hurts everyone who is, as a result of his irrationality, more likely to live under misguided policies.  Since most of the cost of voter irrationality is external — paid for by other people, why not indulge?  If enough voters think this way, socially injurious policies win by popular demand.

It’s also worth asking how truly ‘democratic’ elections have become.  Since the 20th century, government has become so complex that many policy decisions are two steps removed from the ballot box, with legislators ceding control to specialized regulators.  In the United States, the wide-ranging administrative and regulatory state nearly amounts to a fourth, unelected branch of government.  Critics of the European Union have long pointed to a ‘democratic deficit’ within the growing EU institutions.  Despite a growing role for the elected European Parliament and perhaps a more representative era in selecting the European Commission, the key decisions of European integration (including the creation of the single market and monetary union) were made more by treaty than at the ballot box. 

 

So should we, therefore, turn to policymaking-by-lottocracy?  Continue reading Would ‘lottocracy’ be a better form of government than democracy?

Who is Laimdota Straujuma? Latvia’s likely first female prime minister.

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On January 1, when Latvia celebrated its accession to the eurozone as the 18th member to embrace the single currency, it should have been a moment for Latvian prime minister Valdis Dombrovskis to celebrate shepherding his country into the core of Europe just barely two decades after its independence from the Soviet Union.latvia

Instead, Dombrovskis was counting the last days of his truncated tenure after the collapse of a supermarket roof in a suburb of Riga, the Latvian capital, killed 54 people.  Dombrovskis, the 42-year-old wunderkind economist, resigned as prime minister shortly after the tragedy, calling for an independent commission to investigate the incident and arguing that Latvia needed a new government in the wake of the accident.

Though it may have been an act of political integrity, Dombrovskis’s resignation came at a nadir for his shaky minority.  His party, the center-right Vienotība (Unity), placed third in local elections in June 2013, and disapproval was running high for his government, a coalition that also includes the more stridently right-wing Nacionālā apvienība (National Alliance) and the center-right Reformu partija (Reform Party).

Unity’s decision to nominate Laimdota Straujuma, the current agriculture minister, as its designate for prime minister is designed in part to boost the party’s chances at winning elections expected in October of this year.

The three parties that supported the Dombrovskis have indicated they will back Straujuma, and a fourth, Zaļo un Zemnieku savienība (ZZS, Union of Greens and Farmers), a union of Latvia’s green party and its agrarian party, will join them, along with three additional independent lawmakers.  That support will give Straujuma an immediate boost — while the previous coalition controlled just 50 seats in the 100-member Saeima, Latvia’s parliament, Straujuma’s government will command a 16-seat majority:

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That means that when Latvian president Andris Bērziņš formally nominated Straujuma as prime minister, it all but assured that she will command a majority to become the country’s first female prime minister.

So who is Straujuma? And what challenges does she face in the months ahead?

Dombrovskis came to power in 2009 facing a contraction that amounted to 18% of Latvia’s GDP, and he’s presided over Latvia’s resurgence.  Latvia has achieved some of the highest GDP growth in Europe — 5.6% in 2012 and an estimated 4% in 2013.  That growth has come even while Dombrovskis implemented budget cuts to bring Latvia’s debt to one of the lowest levels in all of Europe and forced upon Latvia a sharp internal devaluation — the kinds of wage cuts that have allowed Latvia to become more competitive.  Even his push to join the eurozone was controversial, with nearly half the country opposing the move as recently as a month ago, notwithstanding the fact that the previous currency, the lats, was already tied to the euro.

Though it’s hard to miss the resemblance to German chancellor Angela Merkel, Straujuma comes to power as a former civil servant, and there’s no way to know if she’ll last nine months as head of government, let alone nine years.  As agriculture minister, she participated often in negotiations at the EU level over the Common Agricultural Policy, which affects Latvian farmers, and she developed a reputation as a tough advocate for Latvia.  But she’ll lead a party that’s massively unpopular and a government that she says will follow roughly the same course:

… the new government must not destroy the state budget for this year, [Straujuma] told reporters last night, reports LETA.

The next government will have to ensure stability, stressed Straujuma. One of the key priorities, that is “of major importance for businessmen and society”, is preparing a program on absorption of European Union funds for Latvia. The European Commission should approve the program by mid-2014 so absorption of the funds could begin in the second half of the year, emphasized Straujuma.

Unity’s Andris Vilks is almost certain to continue as finance minister in the new government, and Reform’s Rihards Kozlovskis and Edgars Rinkēvičs will remains interior minister and foreign minister, respectively.  Jānis Dūklavs, a member of the Union of Greens and Farmers, will replace Straujuma as minister of agriculture, a role that he held between 2009 and 2011 in the first two Dombrovskis governments.  Raimonds Vējonis, a former environment minister, will become Straujuma’s new defense minister. Continue reading Who is Laimdota Straujuma? Latvia’s likely first female prime minister.

14 potential game-changers for world politics in 2014

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Though I rang in the new year with a list of 14 world elections to watch in the coming year (and 14 more honorable mentions to keep an eye on), I wanted to showcase a few more thoughts about what to watch for in world politics and foreign affairs in 2014.

Accordingly, here are 14 possible game-changers — they’re not predictions per se, but neither are they as far-fetched as they might seem.  No one can say with certainty that they will come to pass in 2014.  Instead, consider these something between rote predictions (e.g., that violence in Iraq is getting worse) and outrageous fat-tail risks (e.g., the impending breakup of the United States).

There’s an old album of small pieces conducted by the late English conductor Sir Thomas Beecham, a delightfully playful album entitled Lollipops that contains some of the old master’s favorite, most lively short pieces.

Think of these as Suffragio‘s 14 world politics lollipops to watch in 2014.

We start in France… Continue reading 14 potential game-changers for world politics in 2014

14 in 2014: European Union parliamentary elections

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9. European Union parliamentary elections, May 22-25.European_Union

If for no other reason, the upcoming elections for the European Parliament will be the most important since direct EP elections began in 1979 because under the new Lisbon Treaty, it will be the European Parliament that decides who will become the next chair of the European Commission, the chief executive organ of the European Union (though German chancellor Angela Merkel has argued that the treaty’s language indicates that the Commission appointment need only ‘take into account’ the EP elections).  In any event, it still means that early in 2014, each of the major cross-national party groupings within the European Parliament will designate their nominees to succeed José Manuel Barroso, the former center-right Portuguese prime minister who will step down in November 2014 after a decade heading the Commission.

The eight European Parliament will have 751 members, over 56% of whom will come from just six member-states: Germany (96), France (74), the United Kingdom (73), Italy (73), Spain (54) and Poland (51).  Four states, Estonia, Malta, Luxembourg and Cyprus, will elect the minimum number of representatives (six).

Between 1979 and 1999, the Party of European Socialists (PES) and its predecessor was the largest group in the European Parliament.  Its members include the major center-left socialist/social democratic parties of Austria, the Czech Republic, Denmark, France, Germany, Portugal, Spain and Sweden, and the labour parties of Ireland, Malta, The Netherlands and the United Kingdom.

Since 1999, however, the European People’s Party (EPP), a group of center-right and Christian democratic parties, have held the largest number of seats.  In the most recent 2009 elections, the EPP won 265 seats to just 183 for the PES.  The EPP’s members include the major Christian democratic parties in Benelux, the Austrian People’s Party, the French UMP, Germany’s Christian Democratic Union Greece’s New Democracy, Hungary’s Fidesz, Ireland’s centrist Fine Gael, Italy’s Forza Italia, Portugal’s Social Democratic Party, Poland’s Civic Platform, Spain’s People’s Party and Sweden’s Moderate Party.

The third-largest group, the Alliance of Liberals and Democrats for Europe Party (ALDE), contains includes most of Europe’s liberal parties, notably Belgium’s Open VLD, the Danish Venestre, Luxembourg’s newly elected Liberals, the Dutch VVD, the British Liberal Democrats, and Ireland’s Fianna Fáil.

Other groups include:

  • the European Green Party (which includes essentially all of Europe’s green and ecological parties),
  • the Party of the European Left (whose members include the German Die Linke and Greece’s SYRIZA),
  • the slightly eurosceptic Alliance of European Conservatives and Reformists (whose members include the Czech Civic Democrats, the UK Conservatives and Poland’s Law and Justice Party),
  • the Movement for a Europe of Liberties and Democracy, formed in 2009 as another slightly euroskeptic group (whose members includes Italy’s Northern League, the Danish People’s Party and the Finns Party), and
  • the European Alliance for Freedom, formed in 2010 as a staunchly euroskeptic, far-right group (whose members include the French National Front, the Dutch Party of Freedom, the Flemish Vlaams Belang and Austria’s Freedom Party).

Although the EPP won’t determine its candidate for Commission president until a convention on March 6-7 and ALDE won’t determine its candidate until February 1, the PES has already nominated Martin Schulz, a member of Germany’s Social Democratic Party and president of the European Parliament since 2012. Polish prime minister Donald Tusk, Luxembourg’s Viviane Reding, the Commission’s vice president and current commissioner for justice, former Luxembourgish prime minister and Eurogroup chair Jean-Claude Juncker, former Latvian prime minister Valdis Dombrovskis, Lithuanian president Dalia Grybauskaitė, Swedish prime minister Frederik Reinfeldt and IMF managing director Christine Lagarde of France have all been touted as possible EPP candidates.  ALDE will choose between former Belgian prime minister Guy Verhofstadt and Finland’s Olli Rehn, currently commissioner for economic and monetary affairs.

Herman Van Rompuy, former Belgian prime minister and the first president of the European Council, the council of European heads of state/government, will also step down at the end of 2014 after two 2.5-year terms in that position.   The first EU high representative for foreign affairs and security policy, Catherine Ashton of the United Kingdom, is also likely to step down.

Given the tumult of the eurozone sovereign debt crisis, almost everyone expects that European voters may use the elections as an opportunity to register dissatisfaction with the direction of European governance.  In particular, that could bode well for the stridently leftist MEP candidates — most notably in Greece, where SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς) of Alexis Tsipras leads EP polls.  It could also bode well for euroskeptic candidates — most notably in the United Kingdom, where Nigel Farage (pictured above) and his anti-EU United Kingdom Independence Party (UKIP) is competing for first place with the Conservative Party and the Labour Party in EP polls, and in France, where Marine Le Pen’s nationalist Front National (FN, National Front) leads EP polls.

Photo credit to Lucas Schifes.

Next: Turkey

14 in 2014: Hungary parliamentary elections

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5. Hungary parliamentary election, expected in April.Hungary Flag Icon

April’s elections will be the first to take place under the rules of the new laws and the new constitution enacted in 2012 by prime minister Viktor Orbán, whose conservative Fidesz – Magyar Polgári Szövetség (Fidesz – Hungarian Civic Alliance) came to power in 2010 with a supermajority in Hungary’s Országgyűlés (National Assembly).

Orbán (pictured above) is easily the most controversial head of government in the European Union, and he’s been criticized for a governing style that’s taken populist turns and authoritarian twists over the past four years, even aside from the controversial constitutional reforms that are likely to give Orbán and Fidesz an advantage in the upcoming elections.

The number of seats in the National Assembly will shrink from 386 to just 199 — 106 seats will be determined on a first-past-the-post basis in single-member constituencies, while 93 will be determined on the basis of party lists (with a 5% threshold).  That’s a slight change from the previous system when around 54% of the seats were determined by party lists; under the new system, about 53% of the seats are determined on the basis of constituencies.  Moreover, the previous two-round election system has been replaced with a one-round system that no longer features a minimum turnout requirement.

That’s all likely to boost Fidesz, which holds a wide lead against a fragmented, withered opposition.  Polls show Fidesz with a nearly two-to-one lead against the nearest opponent, and the electoral law changes could easily amplify Orbán’s majority.  The Magyar Szocialista Párt (MSZP, Hungarian Socialist Party), which became massively unpopular under former prime minister Ferenc Gyurcsány, attracts just around 20% of voters in polls.  Gyurcsány split from his party in 2011 to form the Demokratikus Koalíció (DK, Democratic Coalition), and opposition unity talks have so far failed.  Meanwhile, the far-right nationalist Jobbik Magyarországért Mozgalom (Jobbik) will be looking to maintain its stunning level of support from 2010, when it won nearly 17% of the vote.

NEXT: India

SPD party membership approves German grand coalition

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In an overwhelming endorsement of Germany’s new grand coalition, party members of the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) have approved the governing agreement between the SPD and chancellor Angela Merkel’s center-right union.Germany Flag Icon

Nearly 370,000 German party members approved the agreement by the lopsided margin of 75.96% in a vote that was held over the past two weeks, the results of which were announced earlier today.  The vote followed the November 27 agreement struck among SPD leaders and leaders of Merkel’s Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) and Merkel’s Bavarian allies, the  Christlich-Soziale Union (CSU, the Christian Social Union).

So what next?

Expect Merkel to name a new cabinet within the next 24 hours, and expect her formal reelection as chancellor to come early next week.

You can read more background about the coalition deal here and here, but here’s a short list of points to keep in mind: Continue reading SPD party membership approves German grand coalition

Was it a mistake for the European Union to admit Croatia earlier this year?

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It hasn’t been an incredibly distinguished first six months for the European Union’s 28th member.croatia

Croatia, which entered the European Union on July 1, is only the second state to do so from the former Yugoslav union, but it’s already proving to be somewhat of a problem child — as some Europeans feared openly before its accession.

Most of those fears relate to economics and, given the eurozone’s economic crisis over the past four years, you might have thought that Croatia’s growing pains would be economic in nature, but that’s not the case.

Instead, Croatia’s difficulties have more to do with social issues and historical legacies — in its first six months of EU membership, Croatia caused a showdown almost immediately with EU leaders over the potential extradition of Josip Perković, the former Yugoslav-era director of Croatia’s secret police, and it signaled to the world its relative intolerance for LGBT freedom by conducting a referendum that resulted in a constitutional amendment banning same-sex marriage at a time when much of Europe is embracing equal marriage rights for LGBT individuals.

Those experiences could shape future EU appetite for further expansion in the Balkans, at a time when the European Union has deftly dangled the carrot of EU membership in exchange for a more permanent peace between Serbia and Kosovo, and at a time when EU membership might be the only thing that can save the triple-fractured union of Bosnia and Herzegovina, while also integrating smaller countries like Macedonia and Montenegro into the global economy.

The most serious rupture began three days before Croatia even joined the European Union when it passed the ‘Perković law,’ which purported to prevent the extradition of anyone for crimes committed before August 2002.  That caused an almost immediate backlash against Croatia from EU leaders and the other 27 EU member-states, and by September — less than 90 days after Croatia had joined the European Union — EU justice commissioner Viviane Reding, was threatening economic sanctions.  Germany, in particular, is interesting in extraditing Perković in relation to his role in the assassination of Croatian defector Stjepan Đureković, who was killed in 1983 in what was then West Germany.

Ironically, it’s the center-left government of Zoran Milanović, who leads the four-party Kukuriku coalition and its largest member, the Social Democratic Party of Croatia (SDP, Socijaldemokratska partija Hrvatske), that dug in its heels over the Perković law, not the more conservative, nationalist opposition party, the Croatian Democratic Union (HDZ, Hrvatska demokratska zajednica), which governed Croatia through much of the EU harmonization period, from 2003 through the December 2011 election.  The HDZ, as well as several top government officials opposed the law from the beginning, including Croatia’s foreign minister and deputy prime minister Vesna Pusić, the leader of the second-largest party in the Kukuriku coalition, the Croatian People’s Party/Liberal Democrats (HNS, Hrvatska narodna stranka/liberalni demokrati).

Milanović and the Croatian government eventually backed down in late September by amending the law in a way that complied with EU requirements, but only after Reding instituted formal EU proceedings, needlessly undermining Croatian credibility almost immediately after its EU accession.

Yet almost as soon as the extradition crisis ended, Croatia found itself embroiled in another difficult debate in holding the December 1 constitutional referendum on same-sex marriage.   Continue reading Was it a mistake for the European Union to admit Croatia earlier this year?

Why more protests won’t solve Ukraine’s political crisis (and why the Orange Revolution didn’t, either)

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Despite what you may believe from the example of Egypt and from the various ‘color’ revolutions of the past decade, power isn’t transferred by popular revolt, at least not in mature democracies.Ukraine Flag Icon

That’s important to bear in mind as much of the US and international media keeps its attention focused on Kiev, where protesters continue to demand the resignation of Ukrainian president Viktor Yanukovych, who is largely seen as favoring closer ties to Russia than to the European Union and the West.  Despite last weekend’s protests of up to 250,000 Ukrainians, which featured violent clashes with the police (the Ukrainian government has since apologized), Yanukovych has so far survived the blowback from his decision last month to reject an association agreement that would have brought Ukraine into closer alliance with the European Union.  While the most conspiratorial commentators believe that Yanukovych rejected the agreement at the insistence of Russian president Vladimir Putin, a more plausible explanation is that Yanukovych hopes to avoid the kind of short-term disruption to Ukrainian industry that could result from opening Ukraine’s markets to European-wide competition just months before he hopes to win reelection in February 2015.  Theres also plenty of blame for the European Union itself, which didn’t go out of its way to make the path for Ukraine incredibly easy, in light of Ukraine’s longstanding relationship with Russia.

But too much of the international media’s coverage attempts to frame the Ukrainian protests as some kind of ‘Orange Revolution’ redux, with Western media almost gleefully urging Yanukovych’s overthrow by mob acclamation.

It’s true that Yanukovych is relatively pro-Russian and many of his opponents are relatively pro-Western, and it’s very true that Yanukovych’s record is littered with authoritarianism and corruption.  But that interpretation both overstates the differences among the Ukrainian political elite (when hasn’t Ukraine been relatively corrupt?) and it understates the massive economic, demographic and social problems that Ukraine has faced since the end of the Cold War.  The much-hyped Orange Revolution didn’t settle the question of Ukraine’s relative identity vis-à-vis Russia and the West, and the current round of protests won’t likely settle the question either.

Here’s a look at the map of the 2010 Ukrainian presidential election results, which pitted Yanukovych against the relatively pro-Western Yulia Tymoshenko, a former prime minister who is now jailed on what many agree to be politically motivated charges:

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Here’s a look at last October’s parliamentary election results — blue represents Yanukovych’s governing party, the Party of Regions (Партія регіонів), and pink represents Tymoshenko’s party, the center-right ‘All Ukrainian Union — Fatherland’ party (Всеукраїнське об’єднання “Батьківщина), which emerged as the largest opposition party:

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Now here’s a map of Ukraine’s regions that shows the percentage of the regional population that speaks Ukrainian (rather than Russian):

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Notice any similarities?

You should — the lesson here is that Ukraine is split between a western Ukrainian-speaking population and an eastern Russian-speaking population that’s divided not only by language, but by cultural, political and economic differences.

Here’s a look at average salary by region, for example, which shows that the Russian-speaking east, where many of Ukraine’s major cities are located, is economically stronger than the Ukrainian-speaking west, except the region surrounding Ukraine’s capital Kiev (and, to a lesser degree, the region surrounding Odessa on the Black Sea coast, where tourism boosts the local economy):

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It’s difficult to overstate the differences between the ‘two Ukraines.’ Continue reading Why more protests won’t solve Ukraine’s political crisis (and why the Orange Revolution didn’t, either)

Merkel’s CDU-CSU, Gabriel’s SPD stumbling toward a not-so-grand coalition in Germany

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We’re less than two weeks from December.  That means that the Bundestag, the lower house of Germany’s parliament, has been sitting for about a month, and we’re weeks away from the self-imposed deadline that chancellor Angela Merkel placed on securing a new coalition government.Germany Flag Icon

In case you forgot, Merkel won a handsome victory in the September 22 federal election, when her center-right Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) — together with the Christlich-Soziale Union in Bayern (CSU, the Christian Social Union in Bavaria) — won 311 seats in the Bundestag, just five seats short of an absolute majority.  It was the biggest victory for Merkel’s Christian Democrats in nearly two decades, harkening back to the wide margins that former CDU chancellor Helmut Kohl won in 1990 and in 1994 in the afterglow of the relatively successful reunification of West and East Germany.

But while the CDU-CSU savored a sweet victory, their coalition partners between 2009 and 2013, the Freie Demokratische Partei (FDP, Free Democratic Party) failed to win any seats in the Bundestag for the first time since 1945, leaving Merkel with two options — a minority government or a coalition government with more leftist partners.

Though Merkel flirted throughout early October with Die Grünen (the Greens), a tantalizingly novel coalition that would have remade the German political spectrum, the Greens pulled out of talks on October 16.  So for over a month, coalition negotiations have been exclusively among the CDU, the CSU and the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).  Earlier in November, the coalition talks were going so well that CSU leader and Bavarian minister-president Hoorst Seehofer worried that the harmony would subsume the real policy differences between the German right and the German left.

As Merkel quipped earlier this year, Christmas comes sooner than you think, and Merkel, Seehofer and the SPD’s leader, Sigmar Gabriel (pictured above), are under increasing pressure to agree on a coalition agenda — and given that the CDU-CSU’s 311 seats and the SPD’s 192 seats constitute 79.8% of the entire Bundestag, expectations are high that such a wide-ranging coalition will tackle long-term reform both in Germany and in the European Union.  Moreover, any coalition deal agreed among the three parties must also win subsequent confirmation from a vote of 470,000 SPD members in December.

So what’s holding up the deal?  Continue reading Merkel’s CDU-CSU, Gabriel’s SPD stumbling toward a not-so-grand coalition in Germany

Madagascar holds long-awaited election, prepares for December runoff

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Though the main actors in Malagasy politics have all been barred from running in Madagascar’s presidential election, they still found a way to overshadow the actual candidates in the country’s October 25 election.madagascar-flag

Results are still trickling in four days after the vote, but with just over 25% of all votes counted, it seems almost certain that the race will head to a December 20 runoff between the top two candidates.

That the vote actually went forward four years after a political coup marks significant progress for Madagascar, which has been trapped in a political and economic crisis since 2009.  With a new constitution in place, however, the new president will hopefully close the door on the turmoil that began with the March 2009 coup that brought opposition leader Andry Rajoelina, then the mayor of Madagascar’s capital of Antananarivo, to power.  Rajoelina replaced Marc Ravalomanana, first elected president in 2002 and reelected overwhelmingly in 2006, following widespread riots over economic conditions, sparking concern from throughout the world, including donor countries like France and the United States.

The country has been essentially transitioning toward last weekend’s presidential election ever since.  Finally scheduled for July 24, the election was postponed to August 23 and, again, to October after repeated delays and clashes among Madagascar’s constitutional court, the electoral commission and the Rajoelina administration.

Last year, the European Union and the African Union brokered a deal whereby both Rajoelina and Ravalomanana agreed not to recontest the presidency, which appeared to clear the way for 2013 elections.  But when former first lady Lalao Ravalomanana declared her own candidacy, Rajoelina declared his candidacy as well, arguing that Ravalomanana’s wife was a sly stand-in for the former president.  For good measure, former president Didier Ratsiraka, who brings an additional set of baggage to Malagasy politics, threw his hat in the ring as well.

Over the summer, however, Madagascar’s electoral court banned all three candidates — Rajoelina, Ravalomanana and Ratsiraka — thereby clearing the way for an entirely new administration relatively untainted by the personal failures of the three men who have governed Madagascar for all but five of the past 38 years.

Among the 33 candidates in the first round, two candidates seem poised to face off in the runoff, and unsurprisingly, they are the two candidates who are supported by both Rajoelina and Ravalomanana.

The first is Jean Louis Robinson (pictured above with Lalao Ravalomanana), a physician who previously served as Ravalomanana’s health minister, who leads with 26.32% of the current vote total.  He has benefitted from the full support of both Ravalomanana and his spouse during the campaign, and his campaign platform involves returning to an updated Madagascar Action Plan (MAP) that Ravalomanana tried to implement in the mid-2000s.

The second is Hery Rajaonarimampianina, Rajoelina’s finance minister between 2009 and 2013, who is in second place with 15.16%.  Though Rajoelina, as sitting president, remains neutral in the race, it’s clear that he is supporting Rajaonarimampianina.  Rajaonarimampianina received a masters’ degree in finance and accounting in Québec in the 1980s, served as director of the National Business Institute in the early 1990s, and worked in the private sector in the 2000s as an auditor and accountant.

Both candidates have promised to take action to boost employment and reduce poverty.   Madagascar, a former French colony with a population of around 22 million, suffers from low growth after years of a relatively planned, socialist economy that flatlined after the 2009 coup, despite Rajoelina’s pledge four years ago to restore democracy.  While the eventual winner of Madagascar’s presidency can look forward to a boost from the resumption of international aid from the European Union and the United States, he will face the need to implement serious and fundamental structural reforms if the Malagasy economy is to become truly competitive globally.

No other candidate is currently polling more than 10% of the vote, but the next five candidates include a who’s who of Malagasy political figures, including other politicians who have held roles in Rajoelina’s government over the past four years:

Continue reading Madagascar holds long-awaited election, prepares for December runoff

Bettel now tipped to become Luxembourg’s next prime minister, ending Juncker era

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The three parties that finished in second, third and fourth place, respectively, in Luxembourg’s October 20 election will begin coalition talks, which could bring to an end the 18-year premiership of Jean-Claude Juncker, thereby elevating the current mayor of Luxembourg City, Xavier Bettel as Luxembourg’s next prime minister — and the country’s first openly gay prime minister. luxembourg

Bettel’s party, the liberal Demokratesch Partei (DP, Democratic Party), made gains in the weekend’s election at the expense of Juncker’s center-right Chrëschtlech Sozial Vollekspartei (CSV, Christian Social People’s Party) and Juncker’s previous coalition partner, the center-left Lëtzebuerger Sozialistesch Arbechterpartei (LSAP, Luxembourg Socialist Workers’ Party).

The CSV still won more votes than any other party (as it has in every postwar Luxembourgish election except 1964).  But by banding together, the LSAP, the Democrats and the Gréng (the Greens) would make history by giving Luxembourg its first so-called ‘Gambia’ coalition, named after the three colors of the Gambian flag — green, red (LSAP) and blue (Democrats).  Together, the three parties hold 32 seats (each of the LSAP and the Democrats won 13 seats, while the Greens have six) in the 60-member D’Chamber (Chamber of Deputies), Luxembourg’s unicameral parliament.

But Luxembourg’s snap elections came about only because the LSAP refused to support Juncker in a key vote earlier this summer related to a scandal involving the country’s intelligence service, the Service de renseignement de l’Etat luxembourgeois (SREL).  Though Juncker wasn’t directly responsible for the SREL’s misdeeds, which included illegal surveillance of domestic groups within Luxembourg, he was determined to be politically liable for the oversight of the SREL, which even allegedly recorded a telephone conversation between Juncker and Luxembourg’s grand prince Henri.  Rather than face the humiliation of losing a vote of no confidence, Juncker instead resigned in July and called for snap elections.

Bettel, who leads the Democrats, already has a strong working relationship with the Greens and their leader, François Bausch, due to their cooperation governing Luxembourg City, the small duchy’s capital.  In preliminary discussions, LSAP leader Etienne Schneider (pictured above, center, with Bettel right and Bausch right) agreed that Bettel would lead any ‘Gambia’ coalition government.

The next step would be for grand duke Henri to formally invite Bettel to become the formateur of a new government at a meeting on Friday afternoon.  Thereupon, it would be up to Bettel to bring together the three parties in crafting an agenda to govern Luxembourg.

Though the three parties lie on different points of the ideological spectrum, their government would represent a massive change from decades of center-right CSV rule under Juncker and his predecessors Jacques Santer and Pierre Werner.  Bringing a new party — and a new generation of leadership — into power in Luxembourg could in itself mark a welcome rupture, breathing fresh ideas into Luxembourg’s government and turning the page from the SREL scandal, the roots of which go back to the 1980s.

Moreover, all three parties are more socially liberal than the CSV, which could result in looser abortion laws and could also clear the way for the recognition of same-sex marriage.  Though Juncker personally supports marriage equality and had been pushing for a vote on a marriage equality bill before calling snap elections, it remains contentious within the CSV.  A Bettel-led government would almost certainly pick up the legislative fight where Juncker left off.

The three parties might also find common ground on wage indexing and measures to curb unemployment.  While Luxembourg has one of the wealthiest and strongest economies within the eurozone, the country’s unemployment ticked up from around 5% a year ago to 5.8%, as of August.

It would also make Bettel, at age 40, one of a growing number of Europe’s young vanguard of leaders, alongside Italian prime minister Enrico Letta (age 47), British prime minister David Cameron (age 47) and Finnish prime minister Jyrki Katainen (age 42).  Bettel would also become the third openly gay head of government in Europe (after Belgian prime minister Elio Di Rupo and former Icelandic prime minister Jóhanna Sigurðardóttir).

Continue reading Bettel now tipped to become Luxembourg’s next prime minister, ending Juncker era

Why San Marino (and other microstates) shouldn’t be a member of the European Union

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Voters in San Marino narrowly preferred to pursue an application for membership to the European Union on Sunday in the first referendum of its kind in the tiny Mediterranean republic.European_Unionsanmarino

But despite the narrow approval — 50.3% supported EU membership while 49.7% opposed it — supporters did not reach the threshold for a successful referendum (around 32% of all potential voters).  That’s just as well, because the European Union is not currently designed to admit microstates like San Marino — or Andorra, Liechtenstein, the Vatican City or Monaco.

San Marino is an independent republic that consists of around 61 square kilometers completely surrounded by Italy.  By comparison, San Marino’s population of around 30,000 residents is about 1/22 that of the population of Palermo, the capital of Sicily.

San Marino traces its sovereignty as a republic to the 4th century, and it survived the Napoleonic Wars, papal expansionism, Italian unification and both World Wars (technically neutral in both wars, though its government was controlled from the 1920s until 1943 by the Sammarinese Fascist Party) without being overtaken by the greater Italian state.  Its economy is based largely on banking and tourism, and its GDP per capita of around $36,000 provides the ability to fund generous welfare programs.

Proponents of San Marino’s EU membership argue that the tiny country is already subject to so much EU regulation that its membership would give it more at least marginal influence in making European policy in the future.  But that’s the same argument that pro-EU Norwegians use to make the case that Norway should join the European Union, and that’s not historically been enough to sway Norwegian voters to embrace membership.  It makes more sense in Norway’s case — though the Scandinavian country has just 5 million people, it also has one of the most powerful economies in Europe, and its combination of fiscal discipline and social welfare would make it a touchstone for policymaking decisions.  But no one thinks that we’d see an immediate Sammarinese impact on European regulatory matters if San Marino became the 29th EU member tomorrow.

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The European Council recently considered the relationships between the European Union and the various microstates in a report issued in 2012 with recommendations for a more standardized approach to what is currently quite a helter-skelter set of arrangements:

  • Single market / trade.  San Marino, like Andorra, Monaco and Turkey, is party to a customs union with the European Union, but other states (like Liechtenstein) are actually part of the European single market, and the recent European Council report recommended that the European Union should work to integrate all of the microstates more fully into the European Economic Area.
  • Open borders / Schengen.  Liechtenstein is the only microstate that’s a full member of the Schengen area.  San Marino and the Vatican City have open borders with Italy, just as Monaco has an open border with France, but neither are technically members of the Schengen Agreement.  Andorra has neither membership in the Schengen Area or open borders with France and/or Spain, so maintains border checks with the rest of the European Union.
  • Eurozone / currency.  San Marino uses the euro because, like the Vatican, its pre-eurozone currency was tied to the Italian lira, and Monaco has a similar arrangement, given its prior monetary links to the French franc.  Liechtenstein uses the Swiss franc, while Andorra has a special agreement for issuance of euro coins with the European Union.

For San Marino, at least, its current relationships with the European Union and Italy mean that it has de facto or de jure access to the single market, benefit of the Schengen free-movement zone and participation in the eurozone. Continue reading Why San Marino (and other microstates) shouldn’t be a member of the European Union

Democrats gain despite Juncker’s likely return as prime minister in Luxembourg

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As expected, the party of Europe’s longest-serving prime minister Jean-Claude Juncker won Luxembourg’s parliamentary elections over the weekend.luxembourg

Despite having lost nearly 5% from the result of the previous 2009 elections, Juncker’s center-right Chrëschtlech Sozial Vollekspartei (CSV, Christian Social People’s Party) still finished with more support than any other party, entitling it to 23 seats in Luxembourg’s 60-member unicameral parliament, the D’Chamber (Chamber of Deputies), a loss of three seats:

“I am satisfied with the results as far as my party remains the number one party in Luxembourg, with a huge distance between my party and the two other main political parties,” Mr Juncker said.

“We should be entitled to form the next government.”  But he said it was too early to begin coalition talks.

Its coalition partner between 2004 and 2013, the center-left Lëtzebuerger Sozialistesch Arbechterpartei (LSAP, Luxembourg Socialist Workers’ Party), finished in second place, winning the same number as seats as it had previously (13), despite the fact that its support declined, especially in its stronghold in the south of the country.

But the third-place liberal Demokratesch Partei (DP, Democratic Party) also won 13 seats, a four-seat gain that makes it the clear winner, in terms of momentum, in Sunday’s election.

While the Democrats may have hoped for even more seats, the party made the starkest gains in Sunday’s election and that its leader, Luxembourg City mayor Xavier Bettel, is a rising star in Luxembourgish politics.  Though Bettel may not have won enough seats to make a play to become prime minister, he’s young enough (40) that he now stands a strong chance of making further gains in the next set of Luxembourgish elections.

Moreover, while Juncker may well return into a governing coalition with the LSAP, it was the LSAP’s refusal to back Juncker in a key vote over the summer over a scandal involving illegal domestic surveillance within Luxembourg’s secret service, which led to Juncker’s resignation and Luxembourg’s first snap elections in decades.  Though Juncker wasn’t directly involved in the scandal, a parliamentary inquiry found that he shared political responsibility for failing to adequately oversee the secret service and intelligence agency.  Despite the scandal, however, it wasn’t expected that the CSV would forfeit its dominance within Luxembourgish politics, though polls predicted slight losses for Juncker and his coalition partner, the LSAP.

Juncker has served as prime minister since 1995 and, between 1989 and 2009, also served as Luxembourg’s finance minister.

Given that the Democrats were the clear winners in Sunday’s vote, there’s a chance that Juncker could turn to the Democrats to join his government (as Juncker did between 1999 and 2004), putting Bettel even more clearly on the path as Juncker’s heir apparent.

LSAP leader Etienne Schneider hinted as much after Sunday’s votes were counted:

Schneider commented that another LSAP and CSV coalition would not necessarily be the most democratic, since it would exclude the party with the biggest gain in voter trust.

There’s also a small possibility of a so-called ‘Gambia’ coalition (named after the three colors of Gambia’s flag) among the LSAP (red), the Democrats (blue) and the Déi Gréng (the Greens), who won six seats.  Together, the three parties won 32 seats, an absolute majority, though it seems unlikely that Luxembourg’s next government would exclude Juncker’s top-polling party.

Though Juncker downplayed his interest throughout the campaign, he has been discussed as a potential candidate for the presidency of either the European Council or the European Commission, both of which will be vacant next year.  Christine Lagarde’s current term as managing director of the International Monetary Fund will end in 2016 — as the first chair of the Eurogroup, the group of eurozone finance ministers, Juncker has already played a key role in setting European Union monetary and financial policy, following in the long tradition of Luxembourgish leadership at the European level.

In addition to the other four major parties, the centrist Alternativ Demokratesch Reformpartei (Alternative Democratic Reform Party) won three seats and the far-left Déi Lénk won two seats:

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Despite CETA signing, Harper’s 2014 agenda remains unambitious

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Canadian prime minister Stephen Harper today celebrated the signing of a landmark free-trade deal between Canada and the European Union, bringing to fruition one of the top accomplishments that Harper can claim since taking office with a minority government in 2006 and a majority government in 2011. Canada Flag Icon

Although the pact won’t be ratified until 2015, the Comprehensive Economic and Trade Agreement (CETA) removes tariffs between Canada’s economy and the $17 trillion economy of the European Union, which comprises 28 countries and over 500 million people.  Together with the North American Free Trade Agreement (NAFTA), it will give Canada exclusive access to more than half of the global economy.  CETA will allow Canadian automakers to export 12 times as many automobiles to Europe, and it will fully open the EU market to Canadian fruits, vegetables, wheat, grains and dairy, while removing tariffs on European wine and spirits, all seafood, metals and minerals (including steel and iron) and up to 29,000 tonnes of European cheese.  Furthermore, Harper is considering granting compensation to Canada’s dairy producers, especially in Québec, if they lose revenue in the wake of the agreement.

What’s more, Harper (pictured above with European Commission president José Manuel Barroso) will be able to brag that his vision for a Canadian-European free trade agreement served as a precedent for the Transatlantic Trade and Investment Partnership (TTIP) still being negotiated between the United States and the European Union.

At a time when the Liberal Party has emerged from the brink of political oblivion with the selection of its popular, telegenic leader Justin Trudeau, to lead polls in advance of the 2015 election — an iPolitics/EKOS poll earlier this week gave the Liberals 36% support to just 26% support for Harper’s Conservative Party and 25% for the social progressive New Democratic Party — the completion of CETA and its ratification gives Harper three domestic policy wins.

First, it’s perhaps his most significant policy accomplishment in seven years.  Second, not only does it give him a substantive accomplishment, it gives him one that bolsters the case that he’s dedicated to creating jobs and strengthening Canada’s economy, and it provides a contrast to Trudeau’s often wishy-washy blather.  Third, it hoists a difficult choice on the NDP — support the CETA and anger labor unions, especially within its new Québécois stronghold; or oppose to CETA to draw a stronger contrast to Trudeau’s newly invigorated Liberals.

But don’t expect much more in the way of ambition from Harper’s government this year.

The agreement comes after the reading of Harper’s 2013 Throne Speech, much of which constituted a victory lap detailing Canada’s superior employment and economic record compared to its developed-world peers, such as the United States and the European Union, where political instability, stagnant GDP growth and joblessness have been more acute.  While Harper hopes to pass a law requiring balanced budgets in the future, it’s unclear whether he can actually pass a bill through Canada’s parliament or that future governments would keep it in place.

The rest of Harper’s agenda amounted to an odd mix of populist consumer protection schemes:

The government promised to “take steps to reduce roaming costs” for cellphone users. It says it will take action so that cable and satellite customers can “choose the combination of television channels they want” by “unbundling” channel packages. And it promised to move on “hidden fees,” including making it so that “customers won’t pay extra to receive paper bills.” If this part of the agenda reads like it was pilfered from the NDP, that’s because to some extent it was.

It’s puzzling for a market-oriented party like the Tories to prioritize these kind of measures — services like Netflix and Hulu are already, in part, helped to unbundle television packages through market forces.  Roaming costs for Canadian users are already coming down due to market pressures.  So many of the consumer goals Harper listed are likely to come about through the market without the need for government interference.

It’s equally baffling to know how Harper will reduce ‘geographic price discrimination,’ his term for the price differential between consumer goods sold in Canada and the United States. Presumably, if the price difference is enough, Canadians (90% of whom live within 100 miles of the US border) will make a trip down south to buy them at cheaper prices, or enterprising entrepreneurs will find a way to undercut them — especially in the world of e-commerce.

But even more, it’s small ball.  It’s the Canadian equivalent of former US president Bill Clinton’s much-derided 1995 agenda of school uniforms and ‘v-chips.’  Though consumer protection initiatives aren’t nothing, it’s hardly the kind of bold, conservative agenda that you might have expected Harper to champion upon coming to power seven years ago, and surely not what you’d expect from a government just two years after finally capturing a majority government.

John Ivison, writing in The National Post, likened the Throne Speech to ‘a botox treatment gone bad’:

The Throne Speech is littered with examples of the government wading into sectors of the economy to “fix” problems that should be left to either the market or the existing regulators — all to the detriment of millions of Canadian shareholders.  It’s all so transparent and light as tinsel.

But it’s not just this year’s Throne Speech.

Aside from CETA, it’s hard to point to any truly groundbreaking, signature legislative acts in the Harper era.  Sure, the government reduced the rate of the Goods and Services Tax from 7% to 5% by January 2008, and it will likely balance Canada’s budget by 2015.  But those accomplishments, significant as they are, won’t be remembered in 50 or 100 years in the same way that CETA could be remembered.  Continue reading Despite CETA signing, Harper’s 2014 agenda remains unambitious

Who is Xavier Bettel? (Maybe Luxembourg’s next prime minister.)

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Xavier Bettel may not win this weekend’s parliamentary elections in Luxembourg, but he’s likely to lead his party to significant gains, putting him in line as the heir apparent to the small European country’s long-time prime minister Jean-Claude Juncker.luxembourgEuropean_Union

Sure, that may not be the most world-shattering event in world politics — with about 538,000 people, Luxembourg has about one-fourteenth the population of Hong Kong.  But given the chief role that Juncker has played in steering eurozone policy, it’s worth keeping an eye on the top up-and-coming Luxembourgish leaders — every Luxembourgish prime minister since 1953 has played a crucial role in the European integration process.

So as a new generation of Luxembourgish politicians come to the fore, it’s not difficult to envision that they could play a starring role in European-wide policymaking later this decade and in the 2020s.

Enter Bettel, exit Juncker?

No Luxembourgish politician has emerged quite as forcefully as Bettel (pictured above), who during the campaign has emerged as Juncker’s chief rival.

A 40-year-old openly gay attorney, Bettel joined parliament in 1999, when the Democrats governed as the junior partner of a coalition with Juncker’s CSV.  Bettel was also elected to Luxembourg City’s communial council in 1999 and subsequently as mayor in October 2011, becoming the youngest mayor of any European capital, rising quickly to prominence, with a favorability rating higher than Juncker’s.

Bettel and his liberal Demokratesch Partei (DP, Democratic Party) are expected to make gains in Sunday’s election, though perhaps not enough gains to take over government.

Juncker was somewhat tarnished earlier this year with the revelation of abuses committed by the Service de renseignement de l’Etat luxembourgeois (SREL), the secret service and intelligence agency of Luxembourg.  The abuses include illegal wiretapping, surveillance of domestic political groups and other crimes that stretch back to the 1980s.  Although Juncker isn’t directly implicated in any of the abuses, a parliamentary inquiry found that he shared ‘political responsibility’ for the SREL’s bad behavior by neglecting to oversee the SREL with adequate oversight.  Perhaps more damaging than the official scolding is the more unshakeable sense that Juncker is perceived to have spent too much time on eurozone policy and not enough time governing his own country.

Facing a vote of no confidence in Luxembourg’s unicameral parliament, D’Chamber (Chamber of Deputies), Juncker resigned and called early elections for October 20.

The Democrats’ campaign hasn’t been incredibly subtle — it’s running on the platform of a ‘new beginning’ for Luxembourg, with ‘new ideas and new leaders.’  Bettel himself has criticized the slow pace of the Juncker government’s approach to reform.

While there’s not an incredible amount of polling data for Luxembourg, it shows that Junker can expect losses for his dominant center-right Chrëschtlech Sozial Vollekspartei (CSV, Christian Social People’s Party), which has won the greatest share of votes in all but one (1964) postwar Luxembourgish general election.

Juncker’s CSV has governed in coalition for the past decade with the center-left Lëtzebuerger Sozialistesch Arbechterpartei (LSAP, Luxembourg Socialist Workers’ Party), but the LSAP’s refusal to support Juncker over the secret service scandal precipitated this weekend’s early elections.   Continue reading Who is Xavier Bettel? (Maybe Luxembourg’s next prime minister.)