Tag Archives: germany

Germany, Saxony

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

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It’s not necessarily that Saxony is shifting to the right, as The Economist wrote earlier this week about the results of last Sunday’s state elections in Saxony.Germany Flag Iconsaxony

It’s more that right-leaning voters are switching allegiances from one party to another, not unlike similar shifts in western Germany and at the federal level. 

Though the Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union) will have to find a new junior coalition partner, there’s no doubt that it will continue to govern under minister-president Stanislaw Tillich (pictured above with German’s chancellor Angela Merkel), who won his second reelection after assuming the office in May 2008. 

Neither its junior partner in the outgoing government, the liberal Freie Demokratische Partei (FDP, Free Democratic Party), nor the neo-Nazi Nationaldemokratische Partei Deutschlands (NPD, National Democratic Party) met the 5% hurdle to return their legislators to  Saxony’s 126-seat state parliament, the Landtag.

Many of their voters appear to have supported the newly formed, anti-euro Alternative für Deutschland (AfD, Alternative for Germany) instead, which won 9.7%, making them the fourth-largest party in the Landtag with 14 seats. 

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

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None of this news, however, was unpredictable, because the results largely lined up with polls. 

The election was most disastrous for the Free Democrats, a party that, it’s not an exaggeration to say, faces political extinction.  Though the FDP made some of its strongest gains in its history in  2009 at both the federal and at state levels, it’s been facing backlash  for the past four years. In last September’s federal elections, it lost all 93 of its seats in the Bundestag, the lower house of the German parliament, shut out for the first time in postwar history. Now that it’s lost all of its seats in Saxony’s Landtag, it will no longer be a part of any state government, a massive turn for a party that just one year ago controlled the German foreign ministry, among other portfolios. It now holds seats in just eight of 16 state assemblies, a number that could drop to six if it wins less than 5% of the vote in upcoming September 14 elections in Brandenburg and Thuringia. 

The AfD, also a party with center-right tendencies, is best known for its relatively eurosceptic stand, even if its euroscepticism is muted by the standards of the United Kingdom, France and even The Netherlands. Continue reading CDU wins Saxony, but faces tougher road in two weeks’ time →

European Union, France, Germany, Italy, Spain, United Kingdom

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

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We now have most of the results from across Europe in the 28-state elections to elect all 751 members of the European Parliament.European_Union

At the European level,  the center-right, Christian democratic European People’s Party (EPP) emerged with about 25 more seats than the center-left, social democratic Party of European Socialists (PES).

That immediately gives former the EPP’s candidate for the presidency of the European Commission, former Luxembourgish prime minister Jean-Claude Juncker, a boost in his efforts to actually become the Commission president. But it’s still far from automatic, despite Juncker’s aggressive posture at a press conference Sunday evening:

“I feel fully entitled to become the next president of the European Commission,” Juncker, a former Luxembourg prime minister, told supporters late yesterday in Brussels after the release of preliminary results. Premier for 18 years until he was voted out of office in December, Juncker also gained recognition in his dual role as head of the group of euro-area finance ministers during the debt crisis.

Juncker (pictured above) still must to convince the European Council to propose him as Commission president, and he’ll still need to win over enough right-wing or center-left allies to win a majority vote in the European Parliament.

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RELATED: Here come the Spitzenkandidaten! But does anybody care?

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That process, which could feature a major battle between the European Council and the European Parliament, will unfold in the days, weeks and possibly months ahead.

But what do the results mean across Europe in each country? Here’s a look at how the European elections are reverberating across the continent.  Continue reading A detailed look at the European parliamentary election results (part 1) →

European Union, Germany, Greece

An interview with Greek-German MEP Jorgo Chatzimarkakis

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Chatzimarkakis

If there’s anyone in European politics who straddles the line between the two cultural realities of Europe today, it’s Jorgo Chatzimarkakis.European_UnionGermany Flag IconGreece Flag Icon

Born in 1966 to Greek migrants in the Ruhr Valley, in what was then West Germany, Chatzimarkakis has served for the past 10 years as a member of the European Parliament from Germany’s liberal Freie Demokratische Partei (FDP, Free Democratic Party). 

Over the course of the past five years, that’s put Chatzimarkakis in one of the most unique roles of any European policymaker. As a German MEP, he belonged to a party that was one of the most outspoken critics of using German funds for what seemed, at the heart of the eurozone’s sovereign debt crisis, like an endless number of bailouts for troubled European economies, including Greece’s.

But as an MEP of Greek descent,  Chatzimarkakis also understood the emotional and social toll of the economic crisis from the other perspective, in light of the pain Greece continues to suffer due to the bailout — often referred to in Greece simply as the ‘memorandum,’ in reference to the Memorandum of Understanding that sets out the terms of the Greek bailout with the ‘troika’ of the European Central Bank, the European Commission and the International Monetary Fund.

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RELATED: In-Depth: European parliamentary elections

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Though the bailout program has kept Greece inside the eurozone, it’s come at a huge cost. The conditions Greece accepted in exchange for the loan program required tough budget cuts, tax increases, and reduced state salaries and pensions, exacerbating an economic downturn that, for Greece, has now developed into a full-blown depression. Unemployment is still nearly 27%, youth unemployment is even higher, and the Greek economy has contracted for six consecutive years:

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Cuts to education, health care and other programs have strained the Greek social fabric, civil strife and strikes are seemingly endless, and politician violence has increased. The neo-fascist Golden Dawn (Χρυσή Αυγή) is now the third-largest party in the Hellenic Parliament, despite the efforts of the current national government to prosecute many of its leaders. Though Greece’s economy may expand this year, for the first time since 2007, it’s clear that the effects of the downturn will reverberate for years to come.

In the 2014 European elections, Chatzimarkakis is running for the European Parliament in Greece, having formed a new political party, the Hellenic European Citizens (Έλληνες Ευρωπαίοι Πολίτες).  Continue reading An interview with Greek-German MEP Jorgo Chatzimarkakis →

European Union

The European parliamentary elections are really four contests

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Festival of Europe Open day 2012 in Strasbourg

It’s hard to know exactly how to place the European parliamentary elections in the constellation of world politics. European_Union

From one perspective, they’re relatively unimportant — a largely apathetic electorate is choosing a body of 751 MEPs in a parliament that has less power within the European Union than most parliamentary bodies have within national governments. The Council of the European Union gives member-states veto power over EU legislation and the European Commission, the regulatory executive of the European Union, has the power to introduce legislation. Voters, since the first direct elections in 1979, have turned out in ever lower proportions with each election cycle. To the extent you talk to European voters who actually care about the elections, they mostly view them as an opportunity for a protest vote.

From another perspective, they’re incredibly important. They represent the one point of genuine democratic participation within the European Union and, given the tumult of the past five years with respect to the eurozone, the European economy and the power of relatively wealthier states to dictate the monetary policy and, increasingly, the fiscal policy of weaker states, the current elections  represent a major conversation about the future of EU policy. That’s especially true in the context of the weighty matters that the next European Parliament will face, including a new data privacy directive and the Transatlantic Trade and Investment Partnership, a potentially game-changing free-trade agreement with the United States.

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RELATED: In Depth: European parliamentary elections

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So which is the right interpretation?

It can be both — and many things besides — depending on your view. That’s because the European parliamentary elections are really four separate political contests, wrapped up and presented as one set of elections. The relative importance or unimportance that a particular actor places on the ‘European elections’ depends upon which of the four ‘contests’ most resonates.

So what are the four contests simultaneously raging across Europe? Continue reading The European parliamentary elections are really four contests →

Comparative Politics, European Union, United States

Trade blocs form the new borders of the 21st century global order

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The most underreported aspect of the current crisis over the Crimea annexation is the extent to which Russia was willing to go to the brink of international crisis for the goal of a future trade bloc. USflagEuropean_Union

Why does Russian president Vladimir Putin care so much about the vaunted Eurasian Union, even though it’s a rewarmed version of the existing economic customs union among  Russia, Belarus and Kazakhstan?

To turn Michael Corleone’s words on their head, ‘it’s personal, not business.’

Putin hoped that the revamped union could attract a few more stragglers in central Asia, Azerbaijan or Armenia and perhaps Ukraine — until February 22.

There are certainly potential gains from greater free trade, and negotiating multilateral trade blocs seems both more efficient than one-off bilateral agreements and more productive than pushing for greater global integration through the World Trade Organization (WTO) process.

Also unlike bilateral treaties or WTO-based agreements, regional trading blocs are also emerging as strategic geopolitical vehicles for advances regional agendas that have just as much to do with politics as with trade.

Ultimately, it’s same reason that the two South American customs unions, the Mercado Común del Sur (MERCOSUR, Suthern Common Market) and the Comunidad Andina (CAN, Andean Community) joined to form the even larger Unión de Naciones Suramericanas (UNASUR, Union of South American Nations), which came into existence in 2008 and covers the entire South American region.

It’s the same reason that Kenyan president Uhuru Kenyatta has put so much pressure on Tanzania to choose between the East African Community (EAC) or the Southern African Development Community (SADC) over the past year by accelerating plans for greater political cooperation within the EAC — with or without Tanzania. Or why admitting South Sudan into the EAC back in 2011 could have helped prevent its slide into civil war.

It’s the same reason that defining ‘Europe’ has been such a  strategic and existential issue for the European Union and its predecessor, the European Economic Community, since its inception. Does the United Kingdom belong? (In the 1960s, according to French president Charles de Gaulle, it didn’t). How to handle Turkey? (Enter into a customs union with it, then slow-roll accession talks since 1999, apparently). Should Ukraine join? Moldova? Georgia? If Azerbaijan can win the Eurovision contest, why not bring it into the single market? What about, one day, Morocco and Tunisia, which both have association agreements with the European Union?

That’s why it’s worth paying close attention to the Trans-Pacific Partnership (TPP), but also the Transatlantic Trade and Investment Partnership (TTIP). TTIP would create a super-free-trade-zone between the United States and the European Union, which together generate between 45% and 60% of global trade.

Continue reading Trade blocs form the new borders of the 21st century global order →

Germany, Russia

Gerhard Schröder: a wasted opportunity in the Ukraine crisis

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If there’s anyone the European Union could have sent to Moscow on a quiet trip to de-escalate tensions with Russia in February, it was former German chancellor Gerhard Schröder.Germany Flag IconRussia Flag Icon

Schröder served as Germany’s chancellor between 1998 and 2005, when he led two consecutive governments led by his center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).  As chancellor, Schröder cultivated strong economic ties with Russia, and in 2003, he led Europe’s opposition to he US invasion of Iraq, a cause that also found Schröder in alliance with Russia and its president Vladimir Putin, who Schröder once called a ‘flawless democrat.’

But Schröder’s comments about the growing crisis have been far from discreet, greatly angering his successor, Angela Merkel. He has criticized the European Union’s approach to Ukraine, defended Russia’s right to annex Crimea, and validated Putin’s view that the NATO military action during the 1999 Kosovo War (an action Schröder supported in his first term as chancellor):

Mr. Schroeder told a discussion forum hosted by Germany’s Die Zeit newspaper that as someone who was aware of history, Mr Putin had certain justifiable “ fears about being encircled” and that since the end of the Cold War there had been “ unhappy developments” on the fringes of what was once the Soviet Union. He also claimed that the European Union appeared not to have “the remotest idea” that the Ukraine was “culturally divided” and had made mistakes from the outset in its attempts to reach an association agreement with the country.

Mr. Schroeder accepted that Russia’s intervention was in breach of international law but compared the Kremlin’s action to his own government’s military support for the NATO bombardment of Serbia during the Kosovo crisis in 1999. “We sent our plans to Serbia and together with the rest of NATO they bombed a sovereign state without any UN security council backing,” Mr Schroeder insisted, adding that he had since become cautious in apportioning blame.

That puts his position almost entirely in line with Putin’s — and almost entirely at odds with the German government’s. Needless to say, that has also ruined whatever value Schröder may have had in soothing German and European relations with Russia.  Continue reading Gerhard Schröder: a wasted opportunity in the Ukraine crisis →

Kaliningrad, Russia

Should Europe be concerned about the threat of Kaliningrad?

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If Russia can get away with annexing Crimea from Ukraine to correct a ‘historical mistake,’ perhaps Germany should be able to retake Kaliningrad? Russia Flag Iconkaliningrad_oblast_russia_flag_round_stickers-rb808e4c40c704821b8d03556a312c426_v9waf_8byvr_152

The Soviet Union took the tiny strip of land, nudged today along the Baltic coast between Poland and Lithuania, in 1944 at the end of World War II from Nazi Germany — just a decade before Soviet leader Nikita Khrushchev transferred Crimea  (perhaps in a drunken stupor) from the Russian Soviet republic to the Ukrainian Soviet Republic. Previously known as Königsberg, it’s the homeland of one of the world’s most renowned German philosophers, Immanuel Kant.

Today, it’s an exclave separated from the rest of the Russian Federation — but it’s a strategically crucial piece of real estate for Russia.  Kaliningrad gives Russia an ice-free port on the Baltic Sea and territory within the heart of the European Union surrounded by  North Atlantic Treaty Organization allies.

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The city of Königsberg was arguably even more important to Germanic culture and history before Kant was ever born. It was the capital of the State of the Teutonic Order, the crusader state, between 1457 and 1525, when the Teutonic State became the Duchy of Prussia, and Königsberg continued to serve as the Prussian capital until 1701, when Berlin became the capital. Russia occupied the ciy for the first time between 1758 and 1764, during the Seven Years’ War. Like many European cities, it was almost completely destroyed during the Second World War.

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RELATED: Forget 1938. Here’s another historical analogy — 1914.

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An eye for an eye, a tooth for a tooth, a Crimea for a Kaliningrad.

Right?  (In the meanwhile, Karelia, here’s your chance — with Russian president Vladimir Putin’s focus diverted to Ukraine, you’ll never have a better opportunity to make a bolt to Finland). Continue reading Should Europe be concerned about the threat of Kaliningrad? →

Ukraine

What comes next for Ukraine following Yanukovych’s ouster?

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There’s apparently a limit on what Ukraine’s president can get away with.Ukraine Flag Icon

He could preside over massive amounts of corruption, he could jail his chief political opponent on ridiculously politicized charges, he could swerve disastrously between a pro-Russian worldview and a pro-European worldview, and he could even brazenly change Ukraine’s election law to win more seats.

But when the government of Ukrainian president Viktor Yanukovych became responsible for the deaths of 88 protesters last week, even members within his own Party of Regions (Партія регіонів) were defecting from Yanukovych.  Arguably, until his police force unleashed lethal fire on hundreds of civilians, Yanukovych could point to a relatively legitimate electoral mandate in the previous 2010 presidential election (and, though it was flawed, the 2012 parliamentary elections).

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Since Friday, when the European Union seemed to broker a deal between Yanukovych and Ukraine’s opposition leaders, events galloped at a dramatically rapid rate (though apparently not too fast for Ukraine’s leading oligarchs, Rinat Akhmetov and Dmitry Firtash), leaving Yanukovych in hiding in eastern Ukraine, under charges of mass murder.  The country’s parliament, the Verkhovna Rada, voted in quick succession to elect speaker Oleksander Turchinov (pictured above), an opposition, pro-European politician, as interim president.

It also elected to restore the 2004 constitution, which restores more power to Ukraine’s parliament and away from its president, and set a tentative May 25 date for new presidential elections.  The parliament also cleared the path to free Yulia Tymoshenko, a former prime minister and a leader of the center-right ‘All Ukrainian Union — Fatherland’ party (Всеукраїнське об’єднання “Батьківщина), who narrowly lost the 2010 presidential vote to Yanukovych.  Tymoshenko (pictured below) was jailed in late 2011 by Yanukovych’s government on charges related to her handling of the natural gas crisis in 2009 during her premiership.  That precedent, ironically, may be one of the reasons that Yanukovych remained so keen on holding onto power in Kiev — having established that he was willing to throw Tymoshenko in prison on politically motivated grounds, it’s Yanukovych who now faces imprisonment on the basis of far more serious charges.  Tymoshenko, who has ruled out leading Ukraine’s soon-to-be-announced interim government, will nonetheless be a leading candidate in the upcoming presidential ballot.  Though she’s been imprisoned throughout the current crisis, she’s also unsullied by having negotiated with Yanukovych, a group that includes another opposition favorite, heavyweight boxing champion Vitaliy Klychko.

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Russia, who had delivered $3 billion of a promised $15 billion bailout, is obviously dismayed.  Though Yanukovych was never quite the Russian puppet that some Western leaders believed him to be, it’s clear that his sympathies lied to the east more than to the west.

So what comes next for Ukraine?  Past experience demonstrates that the story won’t end with ‘happily ever after’ upon the appointment of this week’s new interim government.  As I wrote last December, the Maidan protests — even if they succeed — won’t by themselves end Ukraine’s political crisis.  Just a year after the ‘Orange Revolution’ of December 2004 and January 2005 that brought Viktor Yushchenko power, the pro-European government crumbled into infighting that lasted until Yushchenko left power, massively unpopular, in 2010.  Yanukovych took advantage of the ongoing disunity of the Ukrainian opposition in October 2012’s parliamentary elections, winning largely by dividing the supporters of Tymoshenko’s Fatherland and Klychko’s newly formed Ukrainian Democratic Alliance for Reform (Український демократичний альянс за реформи).

crimea

Almost on schedule, this morning brings news of serious counter-protests in Crimea, the peninsula that lies in the Black Sea on the southeastern coast, one of the 24 oblasts that comprise Ukraine.   Continue reading What comes next for Ukraine following Yanukovych’s ouster? →

14 in 14, Australia, CAR (Centrafrique), Catalonia, DRC / Congo, Eritrea, European Union, France, Germany, Iran, Italy, Japan, Kenya, Mali, Mauritania, Saudi Arabia, South Sudan, Spain, United States, Venezuela, Vietnam

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 →

Germany

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 →

Germany

Germany reaches coalition deal, faces SPD party vote

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With the holidays coming, German chancellor Angela Merkel’s goal was to have a coalition government in place by Christmas.Germany Flag Icon

Those plans took a huge leap forward today, as Merkel’s governing Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party), together with their more conservative Bavarian sister party, the Christlich-Soziale Union (CSU, the Christian Social Union) reached a coalition deal with the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party), paving the way for a return to the same ‘grand coalition’ that governed Germany between 2005 and 2009.

Generally speaking, the terms of the deal are as follows:

  • A hike in the German minimum wage across the board to €8.50, a key concession from Merkel to the SPD.
  • More regulation over employees and increases in pensions, both concessions to the SPD.
  • The government will not raise any additional taxes or issue additional debt, maintaining a key CDU-CSU campaign pledge.

Sometimes feisty coalition talks lasted nearly a month, and the deal comes over two months after the election. Taken together, it represents a fairly generous deal for the Social Democrats, whose 470,000 party members will now vote in the next two weeks to either accept or reject the coalition deal — the ballot results are due on December 14.

The CDU-CSU hold 311 seats in the Bundestag, the lower house of Germany’s parliament, just five short of an absolute majority in the 630-seat Bundestag, following a tremendous victory for the CDU-CSU in the September 22 federal elections.  Those elections saw the CDU-CSU’s previous coalition partner, the Freie Demokratische Partei (FDP, Free Democratic Party) wiped out completely from the Bundestag after failing to cross the 5% electoral threshold.  Though the Social Democrats won 192 seats, it still represented their second-worst election result in the postwar period.

Though Merkel and SPD leader Sigmar Gabriel will announce further details as to the new government’s policy agenda later today, cabinet ministers won’t be named until after the SPD party membership vote.  But it’s expected that CDU finance minister Wolfgang Schäuble will remain in his position (unlike in the first grand coalition, when the SPD’s Peer Steinbrück held the post).  It’s also expected that Frank-Walter Steinmeier will return as foreign minister, a role he held during the first grand coalition.  Gabriel is expected to become the SPD’s floor leader in the Bundestag or assume a super-charged economy ministry.

So what to expect next?

Merkel’s concessions — especially the €8.50 minimum wage — represent just about as far as the conservative chancellor could go, and it’s likely that Bavarian minister-president and CSU leader Horst Seehofer isn’t thrilled with the deal. (Seehofer, fresh off his own landslide victory earlier in September, is unlikely to leave his perch as Bavaria’s chief executive to take a job in Merkel’s cabinet.)

In particular, the minimum wage increase makes it much more likely that the Social Democratic rank-and-file consent to the government.  If the party vote fails, it’s hard to see how there’s any appetite for a grand coalition, though I would expect Merkel and the SPD to take one last go before Germany moves to new elections — both because Merkel is anxious to get on with European governance matters and because the SPD still trails the CDU-CSU by a wide margin in polls, so Merkel could conceivably win an absolute majority if snap elections are held early next year.  A Bild poll last week showed SPD voters only narrowly in favor of a deal by a vote of 49% to 44%, though at that point, Merkel was still resisting the SPD’s push for hiking the minimum wage.

If the deal is approved, however, don’t expect the grand coalition to work as smoothly as the first coalition.   Continue reading Germany reaches coalition deal, faces SPD party vote →

Germany

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 →

Comparative Politics, United States

Toward a pink-blue coalition: how House Democrats can rescue Boehner’s speakership

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boehner

Last week, I noted that German chancellor Angela Merkel succeeded in achieving the post-partisanship in Germany that US president Barack Obama had hoped to achieve when he ran for president in 2008.USflag

While that’s somewhat of an unfair comparison given the collegiality and consensus that’s developed in Germany’s postwar politics, there’s perhaps a lesson for US politicians to learn from the example of German politics in resolving the current standoff that has shut down the federal government of the United States and threatens to precipitate a sovereign debt crisis later this month over the US debt ceiling.

Even after Merkel’s center-right Christian Democrats won a once-in-a-generation landslide victory, she remains five seats of an absolute majority in Germany’s Bundestag (the lower house of the German parliament) and well short of a majority in the Bundesrat (the upper house), so she’s locked in negotiations — likely for the rest of the year — to form a viable governing coalition with either her rival center-left Social Democrats or the slightly more leftist Green Party.

Contrast that to the United States, where a minority of a party that controls one-half of one branch of the American government has now succeeding in effecting a shutdown of the US government.

In the US House of Representatives today, speaker John Boehner (generally) operates on the ‘Hastert rule.’  He’ll only bring bills to the floor of the House that are supported by a ‘majority of the majority’ — a majority of the 232-member Republican caucus.  So even if 115 Republicans and all 200 Democrats in the House support a bill, such as a clean ‘continuing resolution’ to end the current shutdown, they won’t be able to do so if 117 Republicans prefer to condition a continuing resolution upon a one-year delay of the Patient Protection and Affordable Care Act, popularly known as ‘Obamacare.’

It’s not uncommon in parliamentary systems for the ‘loyal opposition’ to sometimes lend their support for an important piece of legislation.  Earlier this year in the United Kingdom, British prime minister David Cameron passed a marriage equality law only with the support of the opposition Labour Party in the House of Commons in light of antipathy within a certain segment of the center-right Conservative Party to same-sex marriage.

In country after country in Europe, including Greece, Ireland and Latvia, traditional rivals on the left and right have sucked up the political costs of austerity and voted to accept difficult reforms, tax increases and tough budget cuts in the face of rising unemployment and depression-level economies in order to avoid the further tumult of being pushed out of the eurozone’s single currency.  If Italy’s left and right could support former prime minister Mario Monti’s technocratic government for 15 months, it’s not outside the realm of democratic tradition to believe that Boehner could form a working coalition in the US House to resolve a crisis that threatens not only American political credibility in the world and the American economy, but the entire global economy.

But as Alex Pareene at Salon wrote earlier today, the United States doesn’t have a parliamentary system, it has a presidential system where an opposition party that controls one house of Congress can cause a crisis if it wants to do so:

An American parliamentary system with proportional representation wouldn’t immediately or inexorably lead to a flourishing social democracy, but it would at least correct the overrepresentation of an ideological minority, and cut down on intentional tactical economic sabotage. The reason we’re in permanent crisis mode isn’t “extremism,” but a system of government that guarantees political brinkmanship.

There’s a bit of ‘grass is always greener’ mentality to that counterfactual.  Parliamentary systems come with their own set of difficulties, and governments in parliamentary systems can wind up just as paralyzed as the current American government seems to be — former Italian prime minister Silvio Berlusconi is causing a political crisis this very week in Italy that will culminate in a vote of no confidence on Wednesday against the fragile coalition headed by center-left prime minister Enrico Letta.  Though the government’s been in power for just five months, Italy could face its second set of elections in 12 months if Letta’s government falls.  Belgium famously went without a government for 535 days between 2009 and 2011 because no majority coalition could form a government.  Moreover, minority governments in parliamentary systems often lurch from crisis to crisis, with individual lawmakers willing and able to ‘hold up’ the government’s legislation.

But the United States need not change its entire system of government to take away a few lessons from Merkel and from Germany.

Juliet Eilperin and Zachary A. Goldfarb at The Washington Post suggested earlier Tuesday that Boehner make a push to become the first truly bipartisan speaker:

[T]he press tends to trumpet two unflattering themes: that Boehner can neither manage his own conference nor make a credible deal with the White House. As a result, the narrative runs, Americans are left careening from fiscal crisis to fiscal crisis, and Congress can’t even tackle popular initiatives such as immigration reform. A host of other potential changes supported by huge swaths of both parties — from tax and entitlement reform to infrastructure spending — are also left on the table just because of the fallout Boehner faces from a few dozen, ultra-conservative Republicans.

At least that’s the rap against Boehner, whose speakership so far has been defined by blocking Obama’s priorities rather than producing significant laws. But that could all change if he were just to decide to say to House Minority Leader Nancy Pelosi (D-Calif.): “Let’s enter a grand coalition. Democrats will vote for me for speaker as long as Republicans hold a majority. And we’ll do a budget deal that raises a little bit of tax revenue and reforms entitlements. We’ll overhaul the tax code for individuals and businesses. We’ll pass immigration reform and support the infrastructure spending that the U.S. Chamber of Commerce and labor unions want.”

Call it a pink-blue coalition — the moderate Republicans and the Democrats.  (Or maybe the donkey-rhino‡ coalition). Continue reading Toward a pink-blue coalition: how House Democrats can rescue Boehner’s speakership →

Austria

Meet Austrian chancellor Werner Faymann, Europe’s Superman of Keynesian economics

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Austrians go to the polls on September 29, and just as with Germany’s election last weekend, voters seem inclined to reward a government that has largely kept Austria’s economy strong through a time of recession and unemployment throughout much of the rest of Europe.austria flag

But German chancellor Angela Merkel has steered a largely moderate, pragmatic course over the past eight years in Germany, and it’s arguable that Germany’s economic success owes much to its position as Europe’s largest economy and its role as a leading global high-tech manufacturer than to any Merkel-era economic policies — if anything, Merkel’s center-left predecessor Gerhard Schröder pushed through the policies (including the Hartz IV labor and welfare reforms) that steeled Germany for the economic storm of the late 2000s and early 2010s.

In Austria, however, it’s been an even more sanguine story.

The country has a 4.8% unemployment rate, according to Eurostat, the lowest among all 27 countries in the European Union.  Its GDP dropped just 3.8% in 2008 (a narrower drop than in Germany), and it returned to growth thereafter — even in 2012, it managed to record GDP growth of 0.8% while most of the eurozone was mired in recession.

So what has Austrian chancellor Werner Faymann and his government done over the past five years in order to steer Austria out of the straits of the eurozone morass?  As it turns out, a lot.

While several European countries have served as battlegrounds for harsh transatlantic battles among economists over economic policy (the usual suspects, but also places like Iceland, Latvia and Estonia), you would think that neo-Keynesian economists would be shouting from the rooftops about Austria’s economic stewardship.  Don’t confuse Austria’s economic policy today with Austrian economics, as such, which is something very much the opposite.

Since his election in September 2008, Faymann has led a grand coalition between his own center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) and the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), and it’s about as anti-austerity a government as Europe has seen.

Given the strength of the Austrian labor movement, Austria immediately pursued the kind of work-sharing policies that Germany also adopted in the aftermath of the crisis when aggregate demand tumbled — the idea that shorter working hours for everyone would be a way to disperse the slack in the economy, thereby avoiding the wave of layoffs that we saw in the United States.

But Faymann also pushed through job training legislation that massively empowered Austria’s Arbeitsmarktservice (AMS, Austrian Employment Service), including strong benefits for the unemployed and the guarantee of a paid training internship for young Austrians in the marketplace.  Austria’s labor market has performed exactly the opposite of that in the United States — unemployment rose in Austria because more workers were seeking jobs, while the US unemployment rate has dropped partly because so many American workers have given up on finding employment.

Faymann also allowed Austria’s public debt to rise from around 60% in 2008 to 75% today in order to finance the jobs legislation and other stimulative measures to shore up Austria’s economy.  His government also took the lead in convincing the European Union and the International Monetary Fund to provide up to €125 billion to stabilize banks in the Central European and South Eastern European (CESEE) region, a strategy that worked to reassure global investors.  A financial panic in CESEE region countries, such as Hungary, would have led to massive losses for Austrian banks as well.  The idea is that a credible commitment from government at the outset of a financial crisis will stave off a larger financial panic.  Contrast the far less proactive European response to the wider sovereign debt crisis — it was only in July 2012, the eurozone crisis’s third year, that European Central Bank president Mario Draghi said he would do ‘whatever it takes’ to save the euro.

Faymann is campaigning on a platform of instituting a wealth tax on millionaires and institutionalizing a levy on the assets of large banks, both of which Faymann hopes will keep income inequality relatively low in a society that already has one of the world’s lowest Gini coefficients.

With a record like that, why isn’t Paul Krugman cheerleading for Faymann from the op-ed pages of The New York Times?  Here’s a European leader who has pursued as close to a Krugmanite economic policy as anyone.

For one, you could easily argue that Austria’s just been lucky.   Continue reading Meet Austrian chancellor Werner Faymann, Europe’s Superman of Keynesian economics →

Austria

Austrian NEOS may win seats in Nationalrat in resurrection of liberal politics

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While Germany’s major liberal party suffered a historic defeat in last weekend’s parliamentary elections, a new Austrian party may win enough seats to return a liberal voice to Austria’s parliament for the first time in nearly 20 years in Austria’s national elections this weekend.austria flag

If it can win 4% of the vote on Sunday, the Das Neue Österreich (NEOS, The New Austria) could enter the Nationalrat, the key 183-member chamber of Austria’s parliament, which would mean that free-market and social liberals would have a voice in Austrian parliamentary politics for the first time since the Liberales Forum (Liberal Forum) lost all of its seats in the 1999 parliamentary elections.  Polls in the lead-up to Austria’s election show the NEOS gaining strength, but still hovering between 3% and the 4% electoral hurdle, and the NEOS continues to gain credibility and momentum in the final days of the campaign.

What’s more, if the NEOS enter the parliament, and the two current governing parties, the center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) of chancellor Werner Faymann and the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), fail to win an absolute majority of seats to continue a two-party grand coalition, the NEOS could conceivably enter government as well in Europe’s first ‘red-black-pink’ coalition.

Given the coziness of Austria’s political elite, and the fact that grand coalitions have dominated Austrian governance in the postwar era, there’s much to recommend the return of a fresh and liberal voice to Austrian politics — or even Austrian government.  Not too shabby for a party that didn’t exist one year ago.

The NEOS were founded as a political party in October 2012, mainly as an alliance of what remains of the Liberal Forum and the Young Liberals, another small party, under the leadership of Matthias Strolz.  Since September, the party’s lead parliamentary candidate has been Hans-Peter Haselsteiner, the CEO of Austrian construction company Strabag and a Liberal deputy in the Nationalrat in the 1990s — it was a stunning reversal for Haselsteiner, who had previously remained somewhat aloof from the NEOS earlier this year.  Not only does Haselsteiner have the deep pockets to finance a strong showing, he’s also one of the most well-known liberals in the country.  Austrians vote for parties through an open-list proportional representation system, so if the NEOS surpass the 4% threshold, the NEOS should count on at least seven seats in the Nationalrat.

Moreover, if the NEOS do enter the Nationalrat, they could lower the total number of seats that the SPÖ and ÖVP can hope to win, making it even more likely that the SPÖ and ÖVP will be forced to look for a third coalition partner to cobble together a governing majority.

In an ironic twist, the NEOS could well enter Austria’s parliament just days after Germany’s Freie Demokratische Partei (FDP, Free Democratic Party) narrowly failed to win 5% of the vote and, accordingly, Germany’s liberal party failed to win a single seat in the Bundestag, the lower house of Germany’s parliament, for the first time since 1949.  Continue reading Austrian NEOS may win seats in Nationalrat in resurrection of liberal politics →