Tag Archives: germany

Germany

Photo of the day: The hills are alive with the sound of Merkel

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It’s the most important trans-Atlantic politics meme since that time US president Barack Obama took a selfie with British prime minister David Cameron and Danish prime minister Helle Thorning-Schmidt.Germany Flag Icon

A throwback to The Sound of Music, yes, as the leaders of the G7 (just when we’d gotten used to G8) gathered at Schloss Elmau in the Bavarian Alps to consider the risks to the global economy — most notably, the risks from Russia’s continued mayhem in Ukraine and its growing isolation in the rest of the world. Greece, too, is high on the agenda, with time running out for the beleaguered country to make a deal with its European and IMF creditors.

It’s disappointing, however, that Obama’s first beer in the country was non-alcoholic. (Hint, Mr. President: You’re doing it wrong).

The real question: how would Julie Andrews tackle Russian president Vladimir Putin, or ISIS, or the fallout from a potential Greek fall from the eurozone, or US-EU free trade? Or climate change? That high-profile conference in Paris is only five months away…

European Union, Ireland

After Irish vote, what next for same-sex marriage in Europe?

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There’s no doubt that the landmark vote in Ireland on May 22, the first such referendum where a popular majority enacted same-sex marriage, has been received as a huge step forward for marriage equality and LGBT rights in Europe.Ireland IconEuropean_Union

While the United States supreme court is set to rule later in June on marriage equality as a legal and constitutional matter within all 50 states, it may feel like a watershed moment in Europe as well, where French president François Hollande and the center-left Parti socialiste (PS, Socialist Party) and British prime minister David Cameron and the Conservative Party both swung behind legislative efforts to enact same-sex marriage, in 2013 and 2014, respectively.

Luxembourg’s prime minister Xavier Bettel officially married his own partner in May, but it was only six years ago that Iceland’s Jóhanna Sigurdardóttir became the world’s first openly LGBT head of government, followed shortly by Belgian prime minister Elio Di Rupo.

Yet the lopsided Irish referendum victory — it passed with 62.07% of the vote and the ‘Yes’ camp won all but one constituency (Roscommon-South Leitrim) — obscures the fact that additional marriage equality gains across the European Union will be slow to materialize. Leave aside the notion, now reinforced by Ireland, that the human rights of a minority can be legitimately subjected to referendum — a precedent that Europeans may come to regret. Amid the recent burst of marriage equality in Europe, the immediate future seems grim.

Nowhere is that more true than just next door in Northern Ireland, which is the only part of the United Kingdom that doesn’t permit same-sex marriage. With the Protestant, federalist electorate dominated by the socially conservative Democratic Unionist Party (DUP), one of western Europe’s most harshly anti-LGBT political parties, there’s little hope that Northern Ireland will follow in the footsteps of England, Scotland and Wales. At the end of April, Northern Irish health minister Jim Wells was forced to resign after suggesting same-sex couples were inferior parents. It’s home to the late Ian Paisley’s ‘Save Ulster from Sodomy’ campaign in the late 1970s, and it’s where sexual relations between two consenting same-sex partners were illegal until 1981, when the European Court of Human Rights ruled that Northern Irish law violated the European Convention on Human Rights.

But Northern Ireland is not alone in its reticence — marriage equality faces long hurdles in some of the European Union’s most important countries, including Germany, Italy and Poland.

The irony is that despite Europe’s leading role two decades ago on LGBT marriage rights, the United States could eclipse Europe with the supreme court’s ruling in Obergefell v. Hodges, as the European Union struggles for years to enact consistent marriage equality legislation. Continue reading After Irish vote, what next for same-sex marriage in Europe? →

France, Germany, Italy, Poland, Scotland, Spain, United Kingdom, United States

Nine European women who could join Hillary Clinton at the top

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Part of the undeniable appeal of Hillary Rodham Clinton’s presidential campaign is her push to become the first woman to lead the United States, enhanced by the fact that she aims to succeed the first African-American president.USflag

But, if elected, Clinton will be far from the only powerful woman on the world stage.

If she wins the November 2016 presidential race, she’ll join a list of world leaders that includes German president Angela Merkel, Liberian president Ellen Johnson Sirleaf, Lithuanian president Dalia Grybauskaite, Brazilian president Dilma Rousseff, Danish prime minister Helle Thorning-Schmidt and Chilean president Michelle Bachelet.

What’s more, there’s never been a better moment for women leading their countries. Assuming that Clinton wins the presidency in 2016 and serves two terms, it’s not inconceivable that she’d lead the United States at a time of ‘peak’ female leadership. But nowhere is that more true than in Europe. In fact, it’s not inconceivable that each of the six largest member-states of the European Union could have women in charge during a potential Clinton administration.

Here’s who they are — and how they might rise to power. Continue reading Nine European women who could join Hillary Clinton at the top →

Greece

What are the chances of snap elections (again) in Greece?

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It’s a sign that fiscal affairs in Greece are bad when the sensible Plan B to cover the Greek government’s looming shortfall involves loans from Moscow (despite protests to the contrary).Greece Flag Icon

Greek prime minister Alexis Tsipras has dismissed European sanctions against Russia, and he met Russian president Vladimir Putin in Moscow earlier this week, signaling to the European Union that Greece is keeping its options open if ongoing debt talks fail. Though Tsipras didn’t seek any financial assistance from Putin, he failed to convince Putin to lift a ban on Greek agricultural exports.

The even more outlandish Plan B involves demanding reparations from Germany for World War II damages, amounting to €278.7 billion. Perhaps not coincidentally, that’s just a little more than the €240 billion in financing that Greece has received in the last half-decade under two bailout programs from the European Commission, the European Central Bank and the International Monetary Fund.

Today, Greece’s government, not even three months old, will repay a €460 million portion of its debt to the International Monetary Fund. But that doesn’t mean that all is well in Athens, where last year’s green shoots of economic recovery are now obscured by the uncertainty of a leftist administration that’s engaged in brinksmanship over Greece’s financing and, ultimately, over the wider question of national fiscal sovereignty in today’s eurozone.

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RELATED: EU should give Tsipras a chance to govern

RELATED: What a Eurogroup-brokered deal with Greece might look like

RELATED: Seven lessons from the Greek election results

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 Why Tsipras can’t (and won’t) make a deal on Berlin’s terms

Without a deal, Tsipras will go down in history as the prime minister who led Greece out of the eurozone, willingly or not. Politically, however, Tspiras can’t agree to any deal that the Eurogroup seems to be offering. That’s increasingly a recipe for Tsipras to call fresh elections early this summer, but there’s no guarantee the results will solve the Greek-EU political quagmire.

Tsipras and his anti-austerity SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς) were elected three months ago on a pledge to renegotiate the terms of Greece’s debt with its European lenders and end the harsh austerity measures that have exacerbated Greece’s contracting economy and growing unemployment. But the EU’s leaders, including Commission president Jean-Claude Juncker, German chancellor Angela Merkel and, presumably, ECB president Mario Draghi, no longer fear the ‘contagion’ effect of a Greek eurozone exit.  Continue reading What are the chances of snap elections (again) in Greece? →

European Union, Germany, Greece

As Schäuble sneers, Greeks agree four-month debt deal

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schaublePhoto credit to Bloomberg News.

If you want to know which side ‘thinks it won’ in today’s temporary deal between Greece and the Eurogroup, you need look no further than the extraordinary statement from German finance minister Wolfgang Schäuble, who essentially spiked the ball in Greece’s face after winning a key concession from its new anti-austerity government that it would honor existing Greek commitments to its creditors in exchange for a four-month extension of its bailout program:Greece Flag Icon

“Being in government is a date with reality, and reality is often not as nice as a dream,” the conservative veteran said, stressing Athens would get no aid payments until its bailout program was properly completed. “The Greeks certainly will have a difficult time to explain the deal to their voters.”

Even if you think the Greek government had little leverage to force the Eurogroup to accept its demands and even if you think today’s temporary deal is at least a step on the path to a stronger Greece within the eurozone, I can’t think of a statement from any European leader more at odds with reality and basic political acumen since the out-of-touch musings of former French president Valéry Giscard d’Estaing in 2004 and 2005, when he was in charge of the process to enact a constitution for the European Union, a process that died when France itself rejected the constitution in a referendum.

It’s as if Schäuble (pictured above with Greek finance minister Yanis Varoufakis) actively wants to feed the notion that Germany dominates European policymaking. His comments might play well in Munich or Stuttgart, but they’ll be poisonous in Madrid and Athens, and cause some amount of indignation in capitals like Paris and Dublin. 

Imagine a different response, whereby German chancellor Angela Merkel delivered a statement that, even while holding steady against concessions to the Greek government, acknowledged Greece’s economic suffering and acknowledged that the Berlin-led bailouts have caused more harm than anticipated — an admission, by the way, that the International Monetary Fund was already making years ago.

A German Europe, and a divided Europe

Greece is in a depression that’s now lasted six years and runs deeper than the Great Depression of the 1930s in either Europe or the United States. Unemployment is rife in Spain, so much so that an untested anti-austerity group, Podemos, now leads polls for the general election later this year. Italy, for now, has placed its trust in its young Tuscan prime minister Matteo Renzi, who seems to have far more commitment to reform than ability to carry it out. Romania and Bulgaria, despite responsible budget policies, are being hollowed out by depopulation and migration to wealthier EU countries.

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RELATED: What a Eurogroup-brokered deal with Greece might look like

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Europe’s best and brightest are leaving economically depressed regions and countries, and they’re heading to London. To Amsterdam. To Frankfurt. That’s left national governments responsible for fiscal commitments to social welfare, education and health care. While its most ambitious citizens look abroad for careers, these national governments find their revenues shrinking and their obligations increasing. Continue reading As Schäuble sneers, Greeks agree four-month debt deal →

Germany, Hamburg

AfD, FDP thrive in Hamburg state elections

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It’s a slow election year in Germany, so there will be few tests at the state level for chancellor Angela Merkel, her center-left ‘grand coalition’ partners or any of the various challengers to Merkel’s hold on German centrism.hamburgGermany Flag Icon

That makes the results from Sunday’s election in Hamburg, a city-state in the German north, perhaps more important than they otherwise would be, and it’s not great news for Merkel’s center-right Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union), which won just one-third as much support as its center-left rival (and partner in federal government), the Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).

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RELATED: Thuringia and Brandenburg election results —
Left, AfD on the rise

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The CDU and the SPD continue to be the largest of Germany’s political parties and, notwithstanding the fact that they have joined together in the second ‘grand coalition’ in 10 years, the two parties fight fiercely at the state level and will contest Germany’s next national elections later this decade. Nevertheless, it wasn’t unexpected that the SPD, under the leadership of Hamburg first mayor Olaf Scholz (pictured above), would easily win the election. Though the SPD lost four seats, enough to deprive it of its absolute majority, Scholz will almost certainly form the next government, likely with Die Grünen (the Greens).

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The troubling aspect for the CDU isn’t that it did so poorly in Hamburg, which has traditionally leaned toward the SPD, but that it seems to be losing voters to more right-wing alternatives, including the mildly eurosceptic Alternative für Deutschland (AfD, Alternative for Germany), which actively advocates that Greece and other countries leave the eurozone. It’s the four state where the AfD has now surpassed the minimal threshold to win seats in the state parliament/assembly.  Continue reading AfD, FDP thrive in Hamburg state elections →

European Union, Greece

What a Eurogroup-brokered deal with Greece might look like

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At times this week, it has felt nearly like the European Union was brokering a bailout of Ukrainian debt, while working to negotiate a ceasefire with Greece.European_UnionGreece Flag Icon

But as Greece’s new left-wing government and the Eurogroup, the collection of eurozone finance ministers, work over the weekend for a new Greek debt deal to float Greece’s treasury for the next two years (or thereabouts), there are glimmers of hope on both sides that a deal might possibly emerge. Negotiations continue as the February 28 deadline approaches, when Greece’s current bailout program is scheduled to end.

So what might that deal ultimately be? Above all, any deal that attempts to put Greece on a long-term path to prosperity needs to start from the notion that its debt burden of nearly 175% of GDP growth is simply unsustainable. You might not hear that in public from figures like German chancellor Angela Merkel, German finance minister Wolfgang Schäuble, European Commission president Jean-Claude Juncker or Eurogroup president and Dutch finance minister Jeroen Dijsselbloem, but it’s likely another story in private.

No matter how many cuts successive governments make to future budgets, the cost of servicing that debt will cripple its ability to provide the same level of public services to Greek citizens — especially at a time when unemployment remains so high. (Not everyone has the view, however, that the Greek debt burden is so incredibly unsustainable).

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RELATED: A Russian bailout may have always been Plan B for Tsipras

RELATED: Seven lessons from the Greek election results

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Here’s an outline of what to expect — perhaps as soon as early Monday morning: Continue reading What a Eurogroup-brokered deal with Greece might look like →

Germany, Greece

Merkel’s incredibly stupid New Year Grexit bluff

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It’s understandable why German chancellor Angela Merkel doesn’t want to cut any deals with Greece — no matter who wins the snap elections later this month.Greece Flag IconGermany Flag Icon

Making concessions, especially to a far-left, anti-austerity figure like potential prime minister Alexis Tspiras, could embolden every recession-weary country from Portugal to Romania to demand relief from Brussels and Berlin, and it could give substantive figures on the European left, including Italian prime minister Matteo Renzi, French president François Hollande and even German social democrats in Merkel’s own grand coalition, a platform to doubt the Berlin-dominated approach to fiscal policy throughout the eurozone.

According to Merkel (pictured above, right, with incumbent Greek prime minister Antonis Samaras) and much of the German electorate, the troika of the European Commission, the European Central Bank and the International Monetary Fund has already been too soft on Greece, lowering the interest on over €240 million in bailout funds and extending the repayment schedule.

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RELATED: What to expect from Greece’s January 25 snap elections

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Nevertheless, it’s incredible that Merkel and her aides take such a cavalier attitude to a potential Greek eurozone exit, which they apparently haven’t ruled out in the event that Tsipras’s leftist SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς) wins national elections in 18 days. Three years after ECB president Mario Draghi promised to do ‘whatever it takes’ to save the eurozone, Merkel now believes that Greece is expendable, that the eurozone is no longer subject to the domino theory that would make a ‘Grexit’ calamitous and that the eurozone is now governed by a chain theory that suggests a Greece-less eurozone will be rid of its weakest link.

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It may be smart domestic politics in Germany, where the anti-euro Alternative für Deutschland (Alternative for Germany) is gaining support on Merkel’s right flank in both state and federal politics, but it’s an incredibly tin-eared intrusion three weeks before Greeks vote. It certainly won’t help the beleaguered coalition government of center-right, pro-bailout prime minister Antonis Samaras, whose New Democracy (Νέα Δημοκρατία) narrowly trails SYRIZA in most polls. Greeks already realize that a vote for Tsipras (pictured above) brings with it greater uncertainty, so Samaras has some hope that the electorate will have doubts about handing power to SYRIZA. He certainly doesn’t need Merkel to make that point for him.  Continue reading Merkel’s incredibly stupid New Year Grexit bluff →

Germany, Thuringia

Germany’s Left Party comes of age with Ramelow victory

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After months of inter-party negotiations, the east-central German state of Thuringia will have a government led by Bodo Ramelow, the state leader of the democratic socialist Die Linke (Left Party).thuringiaGermany Flag Icon

On the surface, it means that Die Linke, partially the successor to  Socialist Unity Party (SED) that ruled the eastern German Democratic Republic, will control a state government for the first time since reunification, which has bred a significant amount of controversy:

Never before in a fully democratic Germany has a regional election triggered so much protest, with thousands demonstrating outside the parliament in Erfurt on Thursday evening ahead of the vote, declaring that the “perpetrators” were heading back into office.

Demonstrators included former East German dissidents, some of whom had spent time behind bars for their opposition views. They shouted “Stasi out!” in reference to East Germany’s repressive secret police, and “The Social Democrats have betrayed us”.

Even center-right chancellor Angela Merkel has used stark language to reject a Left-led government, arguing that Ramelow’s victory is equivalent to putting Karl Marx in charge of government.

But that’s a fairly oversimplified narrative.

Ramelow and the Left will govern in coalition with two far more moderate center-left parties, the Die Grünen (the Greens) and the Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party). The SPD, nationally, governs in a ‘grand coalition’ with chancellor Merkel’s conservative Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union).

Moreover, the Left isn’t even the largest party in the Thuringia Landtag, the regional assembly:

thuringia landtag

Far from bringing a police state or a socialist revolution to the tranquil streets of sleepy Erfurt, the Left will be governing in coalition with two far more moderate partners. With the support of the Greens and the SPD, Ramelow’s government will have a one-vote margin in the Landtag. So even if it wanted to introduce radical far-left measures, the Left wouldn’t get very far.

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RELATED: Thuringia and Brandenburg results: Left & AfD on the rise

RELATED: Left hopes to make eastern breakthrough
in German state elections

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It’s not clear, however, that it wants to do so. Thuringia provides the party with the opportunity that it can govern responsibly, even with a different ideological perspective than Merkel’s prevailing CDU or the moderate SPD. While the Left is relatively pro-Russia, plenty of former chancellors, from Gerhard Schröder to Helmut Kohl, have struck more lenient views toward Russia than most European figures. While the Left is also anti-NATO, that’s because it’s on the more ultra-pacifist side of a political culture that for decades has been incredibly pacifist.

Ramelow, a Lutheran union leader born in West Germany, is hardly a flamethrower, and he’s an advocate of pro-growth, anti-austerity policies. He’s called for wider investment in education and wants to provide a free year of kindergarten to every child in the state.

Continue reading Germany’s Left Party comes of age with Ramelow victory →

Romania

Iohannis upsets Ponta in Romanian presidential election

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iohannis

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

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

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

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

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

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

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

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

Germany

Photo of the day: Helmut Kohl at Brandenburg Gate

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amazingPhoto credit to Andreas Mühe/VG Bild-Kunst Bonn for BILD.

This is perhaps the most haunting photo in world politics in 2014.Germany Flag Icon

Helmut Kohl, who was first elected chancellor of West Germany in 1982 and who left office in 1998 following his final term as the chancellor of a reunified Germany, is today long out of frontline politics and, since a 2008 stroke, has been confined to a wheelchair. He sits alone in this photo for Bild at night in the glow of the Brandenburg Gate, one of many points that divided East Berlin from West Berlin for the better part of 28 years.

It’s astonishing that, with Sunday’s 25th anniversary of the fall of the Berlin Wall, which ultimately resulted in the reunification of Germany and became a harbinger of the collapse of the Soviet Union, we’ve almost reached the point where the Berlin Wall has been down longer than it initially stood.

Even as Mikhail Gorbachev, still around as an icon of the revolutionary change of that era (and despised, to this day, in Russia), is warning that Ukraine could spur a new 21st century cold war, Sunday was an opportunity to celebrate the universal desire for freedom. That was as true in 1989 as it is in 2014, when many walls still remain, from Gaza to China’s ‘great firewall.’

For Germany, the reunification of East and West has been very successful in some ways, others not. It’s almost comical today to imagine British prime minister Margaret Thatcher telephoning Gorbachev, frantically and practically begging him to stop German reunification. But when we think about the chiefly German-led European Union of 2014, with its emphasis on tight budgets (instead of GDP and jobs growth) and its peculiarly German reticence as regards debt and inflation (even in the face of growing deflationary pressure), there may have been something to Thatcher’s warnings, after all. Ulrich Beck captures the peculiar problem of German Europe in a new short book, translated earlier this summer into English.

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RELATED: Has the first Ossi chancellor been good or bad
for the former East Germany?

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German reunification is itself something of a cautionary tale about the perils of implementing a currency union in what, in 1990, was most certainly not an optimal currency zone. Though the past 25 years haven’t been horrific for the six eastern German states that once constituted the German Democratic Republic, it’s hard to say that the former GDR has done better than Poland or other former ‘Iron Curtain’ countries. That, in part, may have been due to the effects of conversion of East German currency on a 1:1 ratio with the West German deutsche mark.

Continue reading Photo of the day: Helmut Kohl at Brandenburg Gate →

Germany, Hungary

A Hungarian remembers the Berlin Wall’s fall

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Guest post by Dániel Kiss

berlinwall

Photo credit to DPA/ZUMA Press.

When the Berlin Wall fell in November 1989, I was in my fourth year of primary school in Budapest, Hungary. I was too young to understand politics, but I do remember the excitement of the adults around me during that eventful year. What I do have clear memories of is how the end of Communism affected my life as a schoolboy.Germany Flag IconHungary Flag Icon

At the start of my first year at school, my classmates and I had entered the Young Pioneers, the Communist youth organisation, which all youngsters in the country effectively had to join. Our parents bought us a uniform consisting of an awkward white shirt, dark trousers, a blue nylon scarf, and a smart whistle of which I was very fond. We formed brigades each with a leader and a name; I recall that one of them was called the Panda Brigade. Occasionally we would have to stand in formation, listen as our brigade leaders delivered formal reports to our teachers, or march around to patriotic music in our gym hall on special days such as 4 April, the day of the liberation of Hungary by the Red Army after World War II. These events had a strange atmosphere of make-believe, as the adults leading them seemed to lack all passion and conviction. But these ceremonies gradually petered out without explanation, and at one point (I think it was at the start of my fourth schoolyear in September 1989) our activities as pioneers too came to an unexplained end. Soon afterwards Hungary started preparing for its first political elections, with a burgeoning growth of political parties of all sorts, and my classmates and I joined the fun by founding, naming, dividing and uniting parties among ourselves.

Hungary had a softer brand of Communism than East Germany and its fall was less spectacular, but the basic reason for which it collapsed was very likely the same: Communism had been imposed by force on the countries occupied by the Soviet army since the end of World War II, and when the Soviets relaxed their hold, these countries shook off the Communist system one way or other. In Hungary Communism is probably gone for ever, as it is widely regarded as disgraceful and ridiculous. However, its heritage still survives in a large but inefficient and corrupt state sector, in an atomized, weakly organised society, and in people’s distrust of capitalism. Communism may have collapsed quickly, but we are still tidying up its ruins.

Dániel Kiss is a postdoctoral research fellow in classics at University College Dublin. His hometown is Budapest. 

Uncategorized

ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’

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Italy’s Mario Draghi, the president of the European Central Bank, joined Stanley Fischer, the vice chair of the Federal Reserve, in an hour-long program at the Brookings Institution earlier today.European_Union

Draghi addressed at length both the ECB’s steps to confront deflation and the need for EU countries to enact bolder economic reforms in his remarks and in his discussion with Fischer, the former president of Israel’s central bank and a former professor at the University of Chicago who once taught Draghi.

Deflation as Europe’s chief economic threat

DSC00853Draghi stressed that he understands the biggest risk to European Union’s economic recovery is deflation. He noted that the ECB is transitioning from a more passive approach to a much more active ‘QE-style’ approach to the bank’s balance sheet — in part by moving last month to purchase private-sector bonds and asset-backed securities. Even if Draghi’s efforts still fall short of the kind of quantitative easing (e.g., outright asset purchases) that the Federal Reserve introduced to US monetary policy five years ago, Draghi committed himself to lifting the eurozone’s inflation from ‘its excessively low level’:

We will do exactly that.

It’s not exactly ‘whatever it takes,’ but it’s a sign that Draghi realizes the dangers that deflation presents, with the eurozone inflation rate falling to just 0.3%, the lowest level since the height of the eurozone’s existential sovereign debt crisis:

Euroarea-Inflation1

Draghi has been one of the leading voices for a more active ECB approach to boosting inflation to 2% within the next two years, though Germany’s powerful central bank, the Bundesbank, and its president Jens Weidmann (also a member of the ECB’s 24-person governing council), remains skeptical of full-throated quantitative easing.  Continue reading ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’ →

Brandenburg, Germany, Thuringia

Thuringia and Brandenburg election results: Left, AfD on the rise

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Ramelow

With the world’s attention more focused on Scotland’s independence referendum this week — or even on Sweden’s national elections — it’s tempting to give short shrift to two state elections in eastern Germany last weekend. But, taken together, they portend major implications for the future of German politics.

thuringiabrandenburgGermany Flag Icon

The first is the now undeniable rise of the conservative, eurosceptic Alternative für Deutschland (AfD, Alternative for Germany). Having narrowly missed the 5% threshold to win seats at the national level last September, the AfD won nearly 10% the August 31 elections in the eastern state of Saxony.

In the September 14 elections, the AfD blew past 10% in both states — winning 12.2% of the ‘list’ vote in Brandenburg and 10.6% of the vote in Thuringia. Not only has the AfD displaced the fast-withering Freie Demokratische Partei (FDP, Free Democratic Party), it now threatens to steal both social and economic conservative voters from the Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union) of three-term chancellor Angela Merkel. Years of Merkel’s cautious pragmatism and two ‘grand coalition’ governments may have caught up to the CDU, giving the AfD a wide berth on the German right.

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RELATED: CDU wins Saxony, but faces tougher road in two weeks’ time

RELATED: Left hopes to make eastern breakthrough in
German state elections

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Meanwhile, Germany’s socialist party,  Die Linke (Left Party), will continue as the junior partner to the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) in the Brandenburg state government. More extraordinarily, it has supplanted the SPD as the clear party of the left in Thuringia.

Its leader, Bodo Ramelow (pictured above) could become the state’s next minister-president, which would mark the first time that the  Left has controlled any state government in Germany. Established after reunification as the remnants of the former East German socialist party, it now also includes a significant band of former disaffected left-wing SPD members and supporters.

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The 13 key EU players in the proposed Juncker Commission

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On Wednesday, the incoming president of the European Commission, Jean-Claude Juncker (pictured above), released full details on the proposed commissioners within his Commission, which will serve as the chief executive and administrative body of the European Union between 2014 and 2019.European_Union

The most important feature of the proposed Juncker Commission is that he’s introduced the greatest amount of hierarchy in an institution that used to be flat. It’s not a secret that some portfolios have always been more desirable than others, especially as the Commission has expanded to include all 28 member-states. But Juncker has introduced a first vice president and five vice presidents, who will also serve alongside Italy’s foreign minister Federica Mogherini, who was appointed two weeks ago to serve as Commission vice president and high representative for foreign affairs and security policy.

The delegation of so much power to five ‘super-commissioners’ with roving, supervisory briefs indicates that Juncker intends to be a much less hands-on Commission president that his predecessor, José Manuel Barroso. But it also reflects a Commission that, including Luxembourg’s Juncker, contains five former prime ministers (Finland, Slovenia, Latvia and Estonia).  It also contains four incumbents (Germany, Sweden, Bulgaria and Austria) who have served throughout the full second term of the Barroso Commission. That makes the Juncker Commission possibly the most distinguished in EU history.

Each commissioner must be approved by the European parliament and, while individual nominees have had troubles in the past, the parliament typically approves the vast majority of a Commission president’s appointments, all of whom were nominated by their respective national governments.

With nine women, it’s not as unbalanced as feared even a week or two ago, and with 14 members of the center-right European People’s Party (EPP), eight members of the center-left Party of European Socialists (PES) and five members of the Alliance of Liberals and Democrats for Europe (ALDE), it generally reflects the results of the May 25 European parliamentary elections, though some social democrats and socialists are grumbling that the left doesn’t have enough representation.

So what can we expect from this illustrious college of commissioners?

Here’s a look at the 13 most important players in the proposed Commission (aside from Juncker and Mogherini, of course). Continue reading The 13 key EU players in the proposed Juncker Commission →