Tag Archives: grand coalition

Merkel may be down, but don’t rule her out for a fourth term just yet

merkel
Germany’s chancellor since 2005, Angela Merkel is widely believed to be preparing to seek fourth term in the 2017 federal elections. (Facebook)

It’s entirely possible that September 2016 marks the worst month of German chancellor Angela Merkel’s career.Germany Flag Iconmecklenburg-vorpommern berlin

Merkel’s center-right party, the Christlich Demokratische Union (CDU, Christian Democratic Union) fell to third place in Mecklenburg-Vorpommern, a relatively low-population state of just 1.6 million that sprawls along the northern edge of what used to be East Germany. While the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) has been traditionally stronger there in elections since reunification, two factors made the CDU’s loss particularly embarrassing. The first is that it’s the state that Merkel has represented since her first election in 1990 shorly after German reunification. The second, and more ominous, is that the CDU fell behind the eurosceptic, anti-refugee Alternative für Deutschland (Afd, Alternative for Germany), a relatively new party founded in 2013 that today holds seats in 10 of Germany’s 16 state assemblies and that, according to recent polls, will easily win seats in the Bundestag in next September’s federal elections.

mecklenburg_vorpommern-2016 mecklenburg-landtag

Two weeks later, on September 18, Merkel’s CDU also suffered losses in Berlin’s state election. As left-wing parties have long dominated Berlin’s politics, and the SPD placed first and Germany’s Die Linke (the Left) and Die Grünen (the Greens) placed third and fourth behind the CDU. But even in Berlin, the AfD still won 14.2% of the vote.

berlin-2016 berlin-assembly

Taken together, the state election results forced a mea culpa from Merkel on Monday. The chancellor, who is expected (though by no means certain) to seek a fourth consecutive term next year, departed from the calm, steely confidence that since last summer has characterized her commitment to accept and integrate over a million Syrian refugees within Germany’s borders. Merkel admitted, however, that she would, if possible, rewind the clock to better prepare her country and her government for the challenge of admitting so many new migrants, and she admitted lapses in her administration’s communications. With the AfD showing no signs of abating, it’s clear that its attacks on Merkel’s open-door policy are working. Merkel’s statement earlier this week admitted that her policies have not unfolded as smoothly as she’d hoped.

* * * * *

RELATED: Can Hillary Clinton become America’s Mutti?

* * * * *

Indeed, German polls are starting to show that voters are souring on Merkel and her approach to migration, so much that in one poll in August for Bild, a majority of voters no longer support a fourth term for Merkel. All of which has led to hand-wringing both in Germany and abroad that Merkel’s days are numbered.

Don’t believe it. Continue reading Merkel may be down, but don’t rule her out for a fourth term just yet

Can Hillary Clinton become America’s Mutti?

Former US secretary of state Hillary Clinton might find in German chancellor Angela Merkel a role model in the era of Trump (State Department)
Former US secretary of state Hillary Clinton might find in German chancellor Angela Merkel a role model in the era of Trump (State Department)

In 2008, US president Barack Obama won the largest Democratic mandate in a generation, in part, by pledging to change the tone in Washington.USflag

But in 2016, after eight years of increasingly bitter and partisan posturing, it’s Obama’s one-time rival, Hillary Clinton, who now has the opportunity to transcend the hyper-partisanship that began with the divided government under her husband’s administration in the 1990s.

Donald Trump’s hostile takeover of the Republican Party laid bare the long-growing schism among various Republican constituencies. Currently, the two living former Republican presidents (George H.W. Bush and George W. Bush), the party’s most recent presidential nominee (former Massachusetts governor Mitt Romney), its one-time 2016 frontrunners (former Florida governor Jeb Bush, Wisconsin governor Scott Walker, Texas senator Ted Cruz and Florida senator Marco Rubio) and the Republican in the highest-ranking elected official — speaker of the House (Wisconsin congressman Paul Ryan) — have all refused to endorse Trump.

* * * * *

RELATED: That transcending ideology thing from 2008?
Merkel did it. Obama hasn’t.

* * * * *

Despite the promise that the coming general election will be nasty, even by the recent standards of American politics, Clinton, if she’s nimble enough, can become a unifying and moderate figure who can work with both Republicans and Democrats. If Trump loses as badly as polls suggest he might, the Republican Party will be a shambles on November 8. The fight for Senate control was always a toss-up, and a Trump debacle could endanger even Republican control of the House of Representatives.

Increasingly, the debate in world politics is tilting away from traditional left-right discourses, replaced by a much darker fight, for the first time since the 1930s, between populist nationalism and globalist internationalism — and not just in the United States, but everywhere from the Philippines to the United Kingdom. In that fight, Ryan (and Bush and moderate Republicans) have much more in common with Clinton and the officials who will lead a Clinton administration than with Trump.

Make no mistake, if Clinton wins the presidency in November, she’s not going to form a German-style ‘grand coalition’ with Ryan and leading Republicans. Postwar German politics operates largely on consensus to a degree unknown in American (or even much of European) politics. Still, German chancellor Angela Merkel has already paved the way for how a successful Clinton presidency might unfold, and Clinton advisers would be smart to figure out, as the campaign unfolds, how to position Clinton as a kind of American ‘Mutti.’ Clinton is already reaching out to moderate Republican donors, but the challenge goes much deeper — to become a kind of acceptable figure to both blue-state and red-state America.

It’s not clear that Clinton has the same political skill to pull off in the United States what Merkel has done in Germany.

But it’s a rare opportunity, nonetheless, if she can.  Continue reading Can Hillary Clinton become America’s Mutti?

Has Germany (and Europe) reached peak Merkel?

merkelcry

In the span of six days, German chancellor Angela Merkel has made a teenage Palestinian refugee cry with her government’s stand on refugee and immigration policy (then tried to pet her, in what must be one of her most cringe-worthy moments as chancellor), reiterated her increasingly isolated position in Europe in opposition to LGBT marriage equality and almost allowed her finance minister Wolfgang Schäuble to force Greece out of the eurozone, in the process undermining Merkel’s authority both at home and within the wider eurozone.Germany Flag Icon

Some week.

Merkel, who won a narrower-than-expected victory in the 2005 election, reached the apex of her political power in September 2013, when her governing Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union) nearly won an absolute majority in the country’s parliamentary elections. Despite being forced back into a ‘grand coalition’ with the rival center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party), Merkel’s popularity crested. At long last, she had won a clear personal mandate for her cautious, seemingly ideology-free leadership.

But when faced with policy issues — like Greece, LGBT rights and immigration — featuring such sharp contrasts, Merkel’s popularity was always going to fall from those stratospheric levels.

The crisis over Greece’s future highlighted the limits of Merkel’s conciliatory governing style — to sit back, wait for a consensus to emerge and follow public opinion, even (or especially) if it means co-opting a rival party’s positions. That’s how Merkel has handled everything from nuclear power to raising the minimum wage. But there’s a limit to that kind of governance. Continue reading Has Germany (and Europe) reached peak Merkel?

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

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.

* * * * *

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

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

* * * * *

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.

thuringia14

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

SPD party membership approves German grand coalition

grossekoalition

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 reaches coalition deal, faces SPD party vote

merkelgabriel

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

Sobotka turns to forming government after troubling internal ČSSD revolt

zemansoboktka

Normally, party leaders face the boot when they lose elections, not after they win them.czech

But that’s what happened in the Czech Republic, when the center-left Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) narrowly topped the country’s parliamentary elections in late October with just over 20% of the vote.

Though the Social Democrats won the election, they took just 50 out of 200 seats in the Poslanecká sněmovna (the Chamber of Deputies), the lower house of the Czech parliament, and only nearly edged out a new populist, anti-corruption, business-friendly party, the Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens), founded just two years ago by wealth businessman Andrej Babiš.

That left the leader of the Social Democrats, Bohuslav Sobotka, in a difficult position.  The fractured result means that the Social Democrats will have to find at least another 50 deputies in order to govern — and despite the willingness of the Social Democrats to work alongside the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) for the first time in the post-Soviet era, the 33 seats that the Communists won won’t alone be enough to float a Social Democrat-led government.

But what left his leadership truly in question was a split between two wings of his party, a pro-Sobotka wing that hopes to keep its distance from the Czech Republic’s new president, Miloš Zeman, and a pro-Zeman wing that seeks closer collaboration between the two.  Zeman led the Social Democrats over a decade ago, and he served as Czech prime minister from 1998 to 2002.  A falling-out with the ČSSD leadership in the mid-2000s, however, caused Zeman to quit the Social Democrats and form a new party.

Zeman triumphed in his own right in the January 2013 presidential election — the first such direct election in Czech politics — and has spent the greater part of the year trying to muscle even more power for the Czech presidency at the expense of the parliamentary government.

So almost immediately following the election, Zeman (pictured above, left, with Sobotka) and top members of the pro-Zeman wing of the Social Democrats, including the party’s deputy leader Michal Hašek, held a secret meeting.  That preceded a call for Sobotka to step down as leader on the basis that Sobotka’s personalized, centralized campaign led to a poorer-than-expected result.

The ‘coup’ soon fell apart, though — Hašek and other participants in the secret meeting with Zeman lied about it, Sobotka rallied his supporters  against Zeman’s interference in internal party affairs, Czech overwhelming blamed Hašek for causing political instability and so, for now, Sobotka remains leader and Hašek has stepped down as deputy chair.

Sobotka won a battle, but it’s far from clear that he’ll even be the next prime minister.  Continue reading Sobotka turns to forming government after troubling internal ČSSD revolt

Czech election results: a fractured and uncertain Chamber of Deputies

zeman

In September, voters in some of Europe’s most economically stable countries (Germany, Austria and even Norway) happily turned out to support their incumbent governments.  But in October, the Czech Republic’s election demonstrates that most of Europe remains under incredible social, economic and political stress.czech

Czech voters selected members to the lower house of the Czech parliament between two days of voting on Friday and today.  The result is a fragmented mess — it’s the most fractured election result since the May 2012 Greek parliamentary election, which resulted in a hung parliament and necessitated a second set of elections in Greece just a month later.

Here are the results:

czech 2013

Seven different parties — ranging from free-market liberals to communists to political neophytes — won enough votes to gain seats in the 200-member Poslanecká sněmovna (the Chamber of Deputies), but it’s not clear who will be able to form a government.  Voters clearly rejected the previous center-right government’s approach to austerity and budget discipline, but split over what they want to replace it.  Turnout fell below 60% for the first time in over a decade.

In purely political terms, the result gives even more power to Czech president Miloš Zeman (pictured above), who came to office after winning the country’s first direct presidential election in January.  On the list of ‘winners’ and ‘losers’ in this weekend’s election, perhaps no one is a greater winner than Zeman, who is entitled to appoint the prime minister and therefore, will shape the first steps in the coalition negotiations.

Since taking office, Zeman has pushed to empower the Czech presidency at the expense of the Czech parliament.  After the country’s center-right government fell earlier this summer, Zeman appointed Jiří Rusnok as his hand-picked technocratic prime minister, but Rusnok’s (and Zeman’s) inability to win a vote of confidence led to this weekend’s snap elections.  Rusnok has served as a caretaker prime minister for the past three months, and he could wind up serving quite a while longer if no governing coalition can be formed.

The center-left Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) technically won the election — but just barely, and with far less support than polls showed just a month ago.  Despite winning more votes than any other party, the Social Democrats won just one out of every five votes, and it’s the party’s worst result in two decades.  It’s not necessarily clear that the party’s leader, former finance minister Bohuslav Sobotka, will even have the chance to form a government.  There’s simply no credible case that the Social Democrats have a mandate for much of anything.

Though Zeman, a Social Democratic prime minister between 1998 and 2002, broke away from the Social Democrats only in 2007, the party remains divided over the extent to which it wants to associate with Zeman now that he holds the Czech presidency.  What’s certain is that the poor result will weaken Sobotka, who leads the anti-Zeman wing of the party.  That means Zeman could bypass Sobotka and appoint a friendlier Social Democrat as prime minister, such as deputy leader Michal Hašek or perhaps Jan Mládek, who was widely tipped to become the next finance minister.

The real winner in today’s election is the Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens), founded in 2011 by millionaire Andrej Babiš, which nearly overtook the Social Democrats in terms of support — they will hold just three fewer seats than the Social Democrats in the new Chamber of Deputies.  Babiš is one of the wealthiest businessmen in the Czech Republic, and he’s led a ‘pox-on-all-your-houses’ campaign that rejects the mainstream Czech political elite as corrupt and dishonest.  Babiš owns founded Agrofert, originally a food processing and agricultural company, but now a conglomerate that’s the fourth-largest business in the Czech Republic.  Though his platform is relatively nebulous, he’s called for reforms to reduce corruption and end immunity for politicians from prosecution.

Think of Babiš as a cross between former Italian prime minister Silvio Berlusconi and Georgian prime minister Bidzina Ivanishvili, perhaps, and think of ANO as a more business-friendly version of Beppe Grillo’s Italian protest group, the Five Star Movement.  Given Babiš’s recent effort to buy a top Czech media company, the comparisons to Berlusconi have become particularly sharp:

A Czech tabloid recently nicknamed Andrej Babis, the new star on the Czech political scene, “Babisconi.” But, when compared with Italy’s Silvio Berlusconi, he quips: “I have no interest whatsoever in underaged girls.”

In third place is the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia), which won about 15% of the vote, the party’s second-best result since the fall of the Soviet Union.  The party is the heir to the old Communist Party of Czechoslovakia, which governed the country from 1968 until 1990 as a Soviet-aligned, one-party state.  Though the Communists have moderated their approach somewhat in the 21st century, and though they were expected to participate in a Social Democratic-led government, the party remains unapologetically communist (unlike other former eastern far-left parties, such as Die Linke in Germany, which espouse a more moderate form of democratic socialism).  Given that the base of the Czech Communists was once older, rural voters, its comeback today says much about the economic despair in the Czech Republic these days.    Continue reading Czech election results: a fractured and uncertain Chamber of Deputies

New Czech party hopes to ride anti-corruption momentum to election gains

Wallenstein view

It’s been a tumultuous year in Czech politics — a surveillance scandal involving the prime minister’s love triangle brought down the government, a power-hungry president elected in the first direct presidential election earlier this year is working to claw power away from the parliament, and what’s left of the Czech right boils down to a contest between an eccentric Bohemian aristocrat and a multi-millionaire entrepreneur. czech

Though it sounds like the long-lost plot of a Leoš Janáček opera, it’s the backdrop to this weekend’s parliamentary elections, which should be no less dramatic than the events that shaped them.

What was once expected to be an easy victory for the country’s main center-left party, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) now looks it will be a less dominant victory — so much that the Social Democrats are no longer considered a lock to lead the next Czech government.  It’s the latest twist in a series of turns that could have major consequences for the economic and political development of the Czech Republic (or ‘Czechia‘ as its current president wants to call it) and its 10.5 million residents, to say nothing of the future expansion of the eurozone within central and eastern Europe. Continue reading New Czech party hopes to ride anti-corruption momentum to election gains

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

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

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

austrianeconomics

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

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

NEOs

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

German election results — federal Bundestag and Hesse state results (in five charts)

Election officials released provisional results overnight in both the federal Germany election to determine the makeup of the lower house of Germany’s parliament, the Bundestag, and the Hessian state elections.Germany Flag Iconhesse flag

Here’s where things stand in the total national ‘party vote’:

bundestag2013

As predicted by exit polls earlier Sunday, neither the new eurosceptic party, the Alternative für Deutschland (AfD, Alternative for Germany) nor the longtime liberal Freie Demokratische Partei (FDP, Free Democratic Party) won more than 5% of the vote — meaning that they have not won any seats in the Bundestag.

The final total won by chancellor Angela Merkel’s Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) — together with the Bavarian Christlich-Soziale Union in Bayern (CSU, the Christian Social Union) — comes to 41.5%.  That’s exactly the same percentage that the CDU/CSU and chancellor Helmut Kohl won in the 1994 German elections, and it’s just 2.3% less than Kohl’s total in the 1990 elections, which came in the aftermath of the largely successful reunification of West Germany with East Germany.  It’s an absolutely huge win for Merkel — but we already knew that as polls closed Sunday.

Here’s a look at how Sunday’s election result compared to the previous elections in September 2009:

versus2009

There are no absolutely clear winners except the CDU/CSU, which improved on its 2009 totals by a staggering 7.8% — including a nearly 1% improvement by the CSU (which is pretty incredible, given that the CSU seeks votes solely in Bavaria, home to just 12.5 million of Germany’s 80 million residents).

The FDP obviously had a disastrous result — the party’s worst result in Germany’s postwar history, which comes after its postwar high of 14.6% just four years ago.  Both leading FDP figure and economics and technology minister Rainer Brüderle, party leader and vice chancellor Philipp Rösler and former party leader (until 2011) and foreign minister Guido Westerwelle are all likely to step aside from their top leadership positions.

The center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) improved slightly on its 2009 result, which was a postwar low for the party under chancellor candidate Frank-Walter Steinmeier, who served as foreign minister in the 2005-09 CDU/SPD ‘grand coalition’ government.  But the SPD’s performance under its 2013 candidate Peer Steinbrück, who served as Merkel’s grand coalition finance minister, was its second-worst result in postwar German history.

Die Grünen (the Greens) also suffered a retreat from its 2009 totals and especially from polls in 2011 that showed them winning between 20% and 25% of the vote.  The poor result follows an unfocused campaign with at least four different leaders.  The Green platform swung from promoting ‘Veggie Day’ to advocating tax increases, despite the fact that its electorate is becoming more moderate, less radical, older and wealthier.

Die Linke (the Left) appears to have retained its traditional strength as the second-most popular party in the eastern states (second to Merkel’s CDU), but it has also lost support since 2009.  Though its leaders were crowing that it will be the third-largest party in the Bundestag for the first time since reunification, the CDU appears to have made significant inroads into the Left’s eastern heartland.

Though the AfD had a superb performance, it obviously fell 0.3% short of entering the Bundestag and, while it will work hard to retain relevance in next spring’s European elections, it’s difficult to tell if it can retain and grow its strength between now and 2017.

Here’s the breakdown of the seats in the Bundestag — due to so-called ‘overhang seats’ resulting from the way in which additional seats are allocated to bring seat totals in line with the ‘party vote,’ there are 630 seats:

bundestag seats

With 311 seats, Merkel is five seats short of an absolute majority.  Without the option of her previous coalition partner, the FDP, it means that she has three options: Continue reading German election results — federal Bundestag and Hesse state results (in five charts)

Close state election in Hesse could tilt federal Bundesrat further left

bouffier

While all of Germany goes to the polls on September 22 to elect a new national government, voters in the state of Hesse will also be choosing their own state government.hesse flagGermany Flag Icon

Although Hesse isn’t as large as Bavaria, which held its own state-level elections on September 15, exactly one week before the federal vote, the election in Hesse is as much a tossup as the national election is likely to be a certain win for German chancellor Angela Merkel.

Hesse, a state in south-central Germany that borders both Bavaria and North Rhine-Westphalia, is home to Frankfurt, the financial center of Germany and in many ways the financial center of Europe.  With just over 6 million residents, Hesse is only the fifth-most populous state in Germany, but its role in the German economy means that the result on Sunday is important — its GDP per capita, on a regional basis, is Germany’s highest (except for the small city-states of Hamburg and Bremen). hessemap

It’s also important because the result of the Hessian election will determine five votes in the Bundesrat, the upper house of Germany’s parliament — a loss here on Sunday would leave the center-right with firm control of just 10 out of 69 votes in the upper house.  That would strengthen the parliamentary check that the center-left holds through its domination of the state governments that cumulatively determine the representatives to the Bundesrat.

It’s also a state where the two main center-right and center-left forces are balanced nearly equally in polls — the race is expected to be incredibly close.

Merkel’s Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) has controlled Hesse’s government since the 1999 elections, when Roland Koch led the CDU into government alongside the liberal Freie Demokratische Partei (FDP, Free Democratic Party).

But things took a poor turn after a particularly brutal election in January 2008, after Koch and the CDU took a hard-right, anti-immigrant turn.  The CDU and the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) essentially tied in that election — each won 42 seats in the 118-seat Landtag (state parliament).  With neither the CDU’s preferred coalition partner, the Free Democrats nor the SDP’s preferred partner, Die Grünen (the Greens), winning enough seats to form a stable majority, it left the democratic socialist Die Linke (the Left) holding the balance of power after it won 5.1% of the vote, enough to win (just barely) six seats, entering Hesse’s Landtag for the first time.

SPD leader Andrea Yspilanti ultimately decided to work with the Left — controversial for the party’s links to former communists in East Germany — but a revolt within the Social Democrats caused her attempts to fail and led to early elections in January 2009.  The Hessian electorate blamed the Social Democrats for the political crisis, and the SPD dropped 13% from its result just a year earlier, giving the CDU/FDP coalition a reprieve.

Koch stepped down as minister president in August 2010 to pursue business interests, handing over the reins to trusted acolyte Volker Bouffier (pictured above, left, campaigning with Merkel).  Bouffier previously served as Koch’s decade-long minister of the interior (and sport), embracing more robust surveillance and police techniques throughout the 2000s, which earned him the nickname, ‘Black Sheriff.’ Continue reading Close state election in Hesse could tilt federal Bundesrat further left

Your weekend cocktail-party glossary for the German election

Plakate zur Bundestagswahl

You’ve mastered the Syrian chemical weapons crisis, you’re ready for the showdown over the US government shutdown and the debt ceiling fight, and you’re ready to hit the party circuit this weekend, wit and pith at the ready.Germany Flag Icon

But wait! You’ve forgotten that Germany, the most populous and arguably the most important country in Europe, is going to the polls on Sunday to elect a new government.

You know that Angela Merkel, Germany’s chancellor for the past eight years, is likely to return for a third term chancellor, even though it’s less clear which governing parties will join her in coalition.

You know that her center-right Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) holds a wide, double-digit lead over the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).

And you know that, as far as elections go, it’s been a particularly boring one — even by the standards of Germany’s relatively muted consensus-driven politics.

But what else should you know about Sunday’s election?

Not to worry.  Here’s all the lingo you need to sound (and be) in the know about what’s likely to happen this weekend in Germany — and what might happen in its aftermath. Continue reading Your weekend cocktail-party glossary for the German election