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14 in 14, European Union

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.

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Scotland, United Kingdom

A tale of two referenda: How the EU debate could poison the Scotland debate

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In a static world, it’s easy to believe that UK prime minister David Cameron’s call in January 2013 for a referendum on the United Kingdom’s continued membership in the European Union will never come to pass — it depends upon the reelection of a Conservative-led in the 2015 general election, Cameron’s continued Tory leadership and a lengthy process of negotiation thereafter with EU leaders. United Kingdom Flag Iconscotland

So when Cameron agreed with Scottish first minister Alex Salmond two months later to hold a referendum on Scottish independence in September 2014, he had every reason to believe that he had bought enough time to keep the European issue relatively calm.  After all, poll after poll shows the pro-independence vote lagging far behind the anti-independence vote and, despite a relatively large number of undecided Scottish voters, many polls throughout 2012 and early 2013 showed the ‘no’ vote with over 50% support.  One Ipsos poll earlier this month showed that 59% support union and just 31% support independence.

But what’s increasingly clear is that the two referenda are becoming inseparable — Scotland’s future role in the United Kingdom depends on the United Kingdom’s future role in Europe.  With Westminster now increasingly turning to its toxic obsession with its union with Europe, a group of largely English parliamentarians may well be endangering the more longstanding three-century union with Scotland.

It’s easy to follow Cameron’s arithmetic here:  Allow the United Kingdom Independence Party (UKIP) and the more euroskeptic members of his own party their opportunity for an anti-Europe outlet in the May 2014 European Parliament elections.  Then sail through the September 2014 Scottish referendum with both the Labour Party and the Liberal Democratic Party united against Scottish independence, maybe even by promising ‘devomax,’ a form of further devolution of tax and spending powers to the Scottish parliament that came into existence in 1999.  Cameron could therefore put the specter of Scottish independence behind him before looking to the next general election and, if successfully reelected, the EU negotiations that would precede the long-promised EU referendum.

What Cameron didn’t count on was the growing chorus of euroskeptic rage from within his own party, which seems destined to repeat the Tory infighting of the 1990s that so destabilized former prime minister John Major’s government  Education minister Michael Gove’s insisted last week, for example, that he would support leaving the European Union if a vote were held immediately.  Over 100 Tory backbenchers are calling for a law to guarantee a referendum later this decade or even for a referendum before 2015, and one Tory MP is even arguing for a full joint Tory/UKIP electoral coalition in 2015.  Some Tories are even trying to look beyond Cameron to a more Euroskeptic leader, perhaps even Gove.  It comes at a time when UK voters insist in poll after poll that they would overwhelmingly vote to leave the European Union in a referendum.

UKIP’s rise hasn’t helped, and Nigel Farage’s insistence at contesting a Scottish by-election led to the somewhat humorous result of his being chased out of a pub in Edinburgh last week (pictured above).  Though it’s a safe bet that Farage and UKIP won’t make many inroads in Scotland, it’s hard to see how his active presence in Scotland could do anything but make things worse for unionist supporters.  His party is currently polling as much as 20% in national polls, outpacing the Liberal Democrats and, in some cases, pulling to within single digits of the Conservatives (giving Labour a sizable lead).  Even if Labour wins in 2015, if UKIP wins the support of one out of every five UK voters, it will pull not only the Tories, but probably even Labour, further toward euroskepticism and eventual rupture with Europe.  Continue reading A tale of two referenda: How the EU debate could poison the Scotland debate →

Czech Republic, European Union

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 →

United Kingdom

Despite by-election result, UKIP is still a bunch of ‘fruitcakes, loonies and closet racists’

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After placing second in a by-election in Rotherham last Thursday, the United Kingdom Independence Party (UKIP) has vaunted to the center of British politics, with newsmakers wondering whether UKIP will, after two decades, finally emerge as a real force in British politics.

The by-election, which resulted after Denis MacShane, a Labour MP, resigned due to the ongoing expenses scandal (MacShane had submitted 19 invoices for reimbursement for non-covered expenses), should have been a non-event. One Labour MP was replaced by another Labour MP, Sarah Champion, who won over 46% of the vote, which was actually an improvement on Labour’s performance in the 2010 election, when MacShane won just 44.6%.

So why has the sleepy little constituency in South Yorkshire been treated like a political earthquake?

With 21.8% of the vote, UKIP’s second-place finish was its best-ever result in an election for the House of Commons.

UKIP was founded by Conservative Party rebels in 1993 in opposition to the Maastricht treaty (the European Union treaty that established the single currency).  Its primary characteristic as a party is its eurosceptic nature, but its ‘pro-British’ posture means that it has adopted harsher anti-immigration and anti-Muslim stances than any of the three major UK parties, notwithstanding a robust strain of euroscepticism within the governing Conservatives under prime minister David Cameron.

Cameron famously referred to UKIP as a bunch of ‘fruitcakes, loonies and closet racists’ in 2006 shortly after winning the Conservative leadership.  It was probably not far from the truth in 2006, and it’s probably not far from the truth today.  Despite the hand-wringing across England, UKIP is not necessarily any stronger or weaker than it already was before last week’s by-election — and winning about one-fifth of the total vote is hardly dominant. Part of its ‘success’ comes from controversy surrounding the local Labour-dominated council removing three children from foster parents, apparently on the basis that the foster parents were UKIP members.

Nigel Farage, UKIP’s leader (pictured above) declared after the by-election that UKIP is ascendant:

“We have established ourselves now as the third force in British politics. We have beaten the Lib Dems in all forms of elections over the course of this year. We are clearly and consistently now above the Lib Dems in the opinion polls.

“There is an upward trend. And I think the UKIP message is resonating with voters and not just Tory voters. There are plenty of voters, particularly in the north of England, coming to us from Labour and the Lib Dems.”

Farage, who’s known less for statecraft than for his stunts at the European Parliament (he’s been an MEP since 1999), would certainly like to think so.

But despite clear signs that UKIP would indeed make gains if the 2014 European elections and the 2015 general election were held today, UKIP is unlikely to become a truly powerful force in UK politics anytime soon.

Here are five reasons why. Continue reading Despite by-election result, UKIP is still a bunch of ‘fruitcakes, loonies and closet racists’ →

Bavaria, European Union, Germany

Is Bavarian finance minister Markus Söder really the most dangerous politician in Europe?

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Der Spiegel ranks the top 10 most dangerous politicians in Europe, and you might be surprised at who comes out on top.

The piece targets Markus Söder, the finance minister of Bavaria since November 2011:

The politician from the [Christlich-Soziale Union in Bayern (CSU, the Christian Social Union)], the conservative sister party to Chancellor Angela Merkel’s Christian Democratic Union, is known for his tub-thumping rhetoric and has stepped up a gear in the euro crisis with vitriolic comments about Greece. “An example must be made of Athens, that this euro zone can show teeth,” he told the Bild am Sonntag tabloid newspaper this week. “Everyone has to leave Mom at some point and that time has come for the Greeks.”

It also points the finger at Alexander Dobrindt, general secretary of the CSU to which Söder also belongs — Dobrindt has also called on Greece to exit the eurozone by paying its debts in drachmas instead of euros.

Söder, an up-and-coming politician in the CSU, has previously served as minister for environment and health from 2008 to 2011 and from 2007 to 2008, as minister for federal and European affairs.  He’s a solid populist, to be sure — for example, he’s in favor of Bavaria’s ban on the wearing of Muslim head scarves (but not nun’s habits).

But it’s easy enough to explain away the relatively strident tone from Söder and the CSU as political posturing in advance of Bavarian state elections that must take place sometime in 2013.  The CSU will be struggling to maintain the grip that its held on Bavarian state politics since the 1950s.  At the federal level, although the CSU-backed Angel Merkel has walked a tight line when it comes to balancing national and federalist European interests, but her leftist opponents are even more federalist when it comes to Europe and the eurozone.

The Spiegel list is dominated by some of the nationalist right’s usual suspects: Nigel Farage, leader of the UK Independence Party (UKIP) and a member of the European Parliament; Marine Le Pen, leader of the Front national in France; Timo Soini, leader of the Perussuomalaiset (PS, True Finns) party, also a member of the European Parliament; Geert Wilders, head of the Dutch Partij voor de Vrijheid (PVV, Party for Freedom); and Heinz-Christian Strache, head of the Freiheitliche Partei Österreichs (FPÖ, Austrian Freedom Party).

They seem like odd choices, though, because none of them (except perhaps Strache) seem to be on the upswing.  Wilders is polling quite dreadfully in advance of the Dutch elections on Sept. 4.  Farage and Soini are sideshows at best.  Despite her strong showing in the French presidential election in April and the shadow she casts over the French center-right, Le Pen failed to win a seat in France’s national assembly in the June elections — and her party won just two seats in total.

To me, the following politicians are far more “dangerous” — by “dangerous,” I mean the ability to win real power or to be more effective in making mischief: Continue reading Is Bavarian finance minister Markus Söder really the most dangerous politician in Europe? →