Tag Archives: grand coalition

Austria

In Germany’s shadow, Austria also prepares for late September election

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faymann

In central Europe, another German-speaking nation is heading to the polls next month in a race that will likely also result in a broad left/right ‘grand coalition.’austria flag

Austria’s parliamentary elections on September 29 will affect a population that’s just two-thirds that of the German state of Bavaria, but the campaign features many of the same dynamics as Germany’s federal elections that will be held exactly one week prior — a broad centrist consensus on economic policy, the likelihood of yet another ‘grand coalition,’ flush economic conditions relative to the rest of Europe and static polls all year long indicating a narrow center-left win.

But there are key differences as well — unlike in Germany, where Christian democratic chancellor Angela Merkel is favored for reelection, it’s Austria’s social democratic chancellor Werner Faymann who will likely return as chancellor.  Moreover, there’s a far-right component to Austrian politics that simply doesn’t exist in Germany.  While the far-right remains divided among three competing parties (and that makes it unlikely that they will form a government), the far-right parties could cumulative outpoll the center-left and the center-right.

Let’s start with the fundamentals — Austria’s economy grew by an estimated 0.6% last year and 2.7% in 2011, and though its growth this year has been virtually negligible, it dipped into negative growth (-0.1%) for just one quarter (Q4 2012), so it’s difficult to say that Austria has even suffered a recession, at least in technical terms.  Although the European Union’s unemployment rate, as of June 2013, remains 10.9% and the eurozone’s unemployment rate an even higher 12.3%, Austria has the absolute lowest unemployment of all 27 EU nations: at 4.6%, Austria’s unemployment is nearly a percentage point lower than the second-lowest, Germany, which has a 5.4% unemployment rate.

That means that the anti-incumbent moods that pushed out French president Nicolas Sarkozy last year and has already weakened his leftist successor, François Hollande, and that upended governments in Greece, Italy, Romania, Bulgaria and elsewhere over the past year, doesn’t have the same punch in Austria.

The latest Gallup poll from Austria dated August 22, is representative — it shows that Faymann’s center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) holds a narrow lead over its current coalition partner, the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party):

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The three far-right parties, taken together, however, attract the support of 29% of all Austrian voters — the largest, the Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria), is the longstanding anti-immigrant, anti-EU, extreme-right conservative party in Austria, and it was the party that the late Jörg Haider led controversially into a government coalition in 2000 with the ÖVP.

But Austro-Canadian businessman Frank Stronach, who returned to his homeland last year after decades as chief executive officer of his Ontario-based auto parts company, is leading an alternative populist, eurosceptic right-wing party — Team Stronach — that’s attracting between 8% and 10% of the vote.

Finally, the Bündnis Zukunft Österreich (BZÖ, Alliance for the Future of Austria), which Haider founded in 2005 when he left the FPÖ, is in danger of losing all of its seats in Austria’s parliament following Haider’s sensational November 2008 death and Stronach’s recent rise.

But most recently, Stronach and the FPÖ leader Heinz-Christian Strache have made more headlines over shirtless photos than policy matters.   Furthermore, in March’s local elections in the southernmost state of Carinthia, where Haider had served as governor for nearly a decade, the Freedom Party’s share of the vote dropped from about 45% to just 17%, and the Social Democrats swept to power under its leader Peter Kaiser in alliance with the Die Grünen – Die Grüne Alternative (Green Party).  Nationally, the Greens are polling at around 15%, which would mark a 40% increase from their 2008 result.

Austrian voters also widely prefer Faymann to continue as chancellor over ÖVP leader and foreign minister Michael Spindelegger — Faymann took over just weeks after the global financial crisis in 2008, and he has pursued one of the most successful center-left policy agendas in Europe.  Like in Germany, Austria pursued work-sharing policies (e.g., shorter working hours for everyone) in the immediate aftermath of the crisis to avoid massive layoffs.  Faymann’s government has also enacted some of the world’s most successful job training legislation and other forward measures to assist workers remain competitive through Austria’s Arbeitsmarktservice (AMS, Austrian Employment Service): Continue reading In Germany’s shadow, Austria also prepares for late September election →

Austria

Photo of the day: Austrian Freedom Party leader (nearly) bares all

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freedomparty

There’s just something undeniably homoerotic about the Austrian far right.austria flag

It all started when octogenarian Austro-Canadian businessman Frank Stronach, the leader of Team Stronach, a new eurosceptic party contesting Austria’s upcoming parliamentary elections, bared his chest over the weekend while talking to reporters from his lakeside home.  But Heinz-Christian Strache (pictured above), the leader of the more established far-right Freiheitliche Partei Österreichs (FPÖ, Freedom Party of Austria), felt the need to show even more skin in an uncharacteristic race to the bottom.

Declaring himself at top fitness going into the campaign, Strache uploaded the photo to his Facebook page over the weekend as well, with his party poised to win nearly one-fifth of Austrian voters next month. Continue reading Photo of the day: Austrian Freedom Party leader (nearly) bares all →

Norway

Despite doubts about far-right Progress Party, no talk of Norwegian ‘grand coalition’

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siv jensen

Though the Høyre (‘Right,’ or Conservative Party) consistently leads polls as the party mostly likely to emerge with the most support in Norway’s September 9 elections, there’s still uncertainty about the future of Norway’s government.norway

That’s because while Conservative leader Erna Solberg is very likely to become Norway’s next prime minister and the Conservatives are widely tipped to win on September 9, the policies that her government will pursue will depend on the relative strength of the other center-right parties — notably the populist, anti-government, anti-immigration Framskrittspartiet (Progress Party), which remains the most controversial of Norway’s major parties.  If it joins the Conservatives in government as predicted, it will be the first time that the Progress Party has joined any government since it was founded in the 1970s.

If the election unfolds as polls predict, the Conservatives would win the largest share of the vote, around 32% and around 56 seats, which would be a historical victory against the Arbeiderpartiet (Labour Party), which is polling around 29% and around 51 seats.  The Progress Party currently polls as the third-most popular party with around 14.5% support and around 27 seats.  That means that the next government will require some kind of coalition between two of those three parties.

So while it’s not surprising that tensions are emerging during the campaign between Solberg and Progress Party leader Siv Jensen (pictured above) and that it’s clear coalition negotiations among the Conservatives, the Progress Party and other center-right allies are likely to be incredibly difficult, it is perhaps surprising that no one has really suggested a ‘grand coalition’ between Labour and the Conservatives as an alternative.  While there’s no real precedent of ‘grand coalitions’ in recent Norwegian history, neither is there precedent for a Conservative-Progress government — both options would mark new ground for Norway.

Solberg is riding high in polls today after a long stint in the wilderness for the Conservatives and a rebranding exercise designed to pull the Conservatives more fully to the center and expand the party’s relevance beyond its traditional image as a party solely for Norway’s business elite.  That means that it has moved more closely to Labour’s position on many issues and it’s much closer to Labour than to the Progress Party on both economic and social issues alike.  Nonetheless, there’s curiously little discussion about a ‘grand coalition,’ even as Norwegians assume that the Conservative-Progress coalition is virtually a done deal.  That means that the Conservatives, a party that favors continuity over rupture, will govern with the Progress Party, which has historically favored rupture over continuity.  It will also likely mean that Jensen will become Norway’s next finance minister, an outcome that could scare moderate voters otherwise disposed to a Solberg-led government into supporting Labour instead.

If, for some reason, the Conservatives win the election and don’t form a coalition with Progress, because negotiations stall or because Progress’s vote collapses, the Conservatives would more likely form a coalition with two smaller center-right parties or even try a minority government before pairing up with Labour, not least of which because Labour prime minister Jens Stoltenberg has spent much of his campaign warning about all the damage that a right-wing government would cause to Norwegian society.

But on policy terms, there’s a lot to recommend a Norwegian ‘grand coalition.’  And if it can happen in Germany, Austria and Italy, why not in Norway too?  Continue reading Despite doubts about far-right Progress Party, no talk of Norwegian ‘grand coalition’ →

Italy

Where Italy goes from today’s elections: a look at four potential outcomes

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pierluigi

Although we still don’t know exactly how the results of the weekend’s Italian election will turn out entirely, we know enough to say that Italy’s short-term future will be beset with gridlock.Italy Flag Icon

We know that, unless there’s a major change among the final results (very unlikely at this point, but still a possibility — La Repubblica‘s latest count shows a 0.4% gap between the two major coalitions), Pier Luigi Bersani will have led his broad centrosinistra (center-left) coalition to a victory in Italy’s lower house, the 630-member Camera dei Deputati (House of Deputies).  That’s because the national vote winner of the lower house elections automatically wins at least a 54% majority of the seats in the lower house.

We know that, whatever the final result, both Bersani’s centrosinistra coalition and the centrodestra (center-right) coalition led by former prime minister Silvio Berlusconi will each hold between 110 and 120 seats or so in Italy’s upper house, the Senato, which is composed of 315 elected members and, currently, four additional ‘senators for life.’ (That’s because the majority ‘seat bonus’ is awarded to the winner of each regional vote rather than on a national basis like in the Camera dei Deputati).

It doesn’t really matter who holds the greatest number of senatorial seats, because no group or party will control enough seats in the Senato alone to form a majority government, including Bersani’s coalition.

So given Bersani’s lead in the lower house, whatever government emerges — if a government emerges — will have to include Bersani’s center-left bloc, with presumably Bersani heading the government as prime minister.  In the short term, that puts Bersani in the driver’s seat but not, perhaps, for long.

None of Bersani’s options, frankly, are very stable, for either his center-left coalition or for Italy.

Given the ongoing eurozone sovereign debt crisis, the pressure will be on Bersani and on the entirety of Italy’s political elite, which now must be said to include Beppe Grillo and the leaders of the Movimento 5 Stelle (the Five Star Movement).  Right now, Italy’s 10-year bond rate is 4.49%, much lower than the 7%-and-higher rates that led to the downfall of Berlusconi’s government in November 2011.  But that could change — and fast — if Italy’s political leadership seems unable to form a government.  Grillo and his allies are now stakeholders in ensuring that Italy doesn’t unravel.

If Bersani succeeds in forming a government at all, it will be less stable than any government in Italy’s so-called ‘second republic’ — i.e., the period from the early 1990s to the present that’s been characterized by the downfall of the former Christian Democrats during the 1992 Tangentopoli (‘bribesville’) scandal that implicated virtually all of Italy’s political elite, the emergence in 1994 of Silvio Berlusconi as the head of the mainstream Italian right, and the increasing consolidation of the mainstream Italian left through what’s now become the Partito Democratico (PD, Democratic Party).

Any Bersani-led government, at this point, will not only be less stable than Berlusconi’s governments, but even less stable than the four notoriously rocky governments of Italian prime ministers Romano Prodi, Massimo D’Alema and Giuliano Amato from 1996 to 2001 and Prodi’s short-lived and troubled return to government from 2006 to 2008.

In light of that bleak background, here are the four potential outcomes over the coming days that you should watch for:

Continue reading Where Italy goes from today’s elections: a look at four potential outcomes →

Germany, Lower Saxony

Merkel shouldn’t despair over center-right’s Lower Saxony loss

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weil

Voters in Germany’s fourth-most populous state, Niedersachsen (Lower Saxony), have elected popular Hannover mayor Stephan Weil (pictured above) its new minister-president after an incredibly narrow victory for the center-left coalition, according to official provisional results.
lower_saxonyGermany Flag Icon

The predicted victory would mean that the center-right coalition headed by minister-president David McAllister, a high-profile (and half-Scottish!) politician within the ruling Christlich Demokratische Union (Christian Democratic Union) of German chancellor Angela Merkel would lose power for the first time in a decade.

As such, the German media is already reporting that the election is a setback for Merkel in advance of expected federal elections later in September or October 2013.  While the election is somewhat of a barometer for federal politics, generally (it’s where former chancellor Gerhard Schröder got his political start — he served as the state’s minister-president from 1990 to 1998), there’s actually a lot of positive news for Merkel in the Lower Saxony result.

Provisional results give the center-right CDU around 36.0% of the vote, a small lead over the center-left Sozialdemokratische Partei Deutschlands (SPD, the Social Democratic Party), with just 32.9%.  Unfortunately, however, that represents around a 6.5% drop in support from the previous regional elections in 2008:

Niedersachsen

Although the CDU’s traditional coalition partner, the Freie Demokratische Partei (FDP, Free Democrats), will have increased their share of the vote to around 9.9% (despite polls showing the FDP with support running at around 5%), the SPD’s traditional coalition partner, Die Grünen (the Green Party), has won around 13.5%.

According to projections, that means the CDU will hold 54 seats in the Landtag, Lower Saxony’s regional unicameral parliament (a 14-seat drop from the current representation) and the FDP will gain a seat for a total of 14.

The SPD will gain just one seat to hold 49, while the Greens have gained eight seats to hold 20.

Together, therefore, the center-left is likely to hold 69 seats to just 68 seats for the center-right, giving Weil the narrowest of margins in the Landtag. 

The key factor is the loss of all 11 seats currently held by the more radical Die Linke (The Left Party), which is projected to have won just 3.1% of the vote, lower than the 5% required to win seats under Lower Saxony’s electoral system.  That means that all of the center-left seats won in Sunday’s election will have gone to the SPD-Green coalition, rather than split with the Left Party, which has historically rejected the possibility of joining a coalition with the SPD.

The Piratenpartei Deutschland (Pirate Party) also fell far below the 5% threshold.

So the result is quite a setback for McAllister, who was contesting his first election as minister-president, and has been mentioned as a potential successor to Merkel as a federal chancellor.  There’s a fair chance that Merkel could bring McAllister into her federal government as a top aide and minister (she once attempted to appoint him as the head of the CDU federally).

Although McAllister isn’t incredibly unpopular in Lower Saxony, he became minister-president in 2010 after Christian Wulff, premier since 2003, resigned to assume Germany’s largely ceremonial presidency — Wulff resigned in February 2012, however, amid allegations that he concealed a private loan from a wealthy friend with business interests in Lower Saxony.

Given the scandal around Wulff, the fact that the CDU has held power for a decade and was seeking its third consecutive mandate for forming a government, and the fact that Germany is slipping into recession, McAllister was always going to have a tougher run in this year’s elections than Wulff had in 2008.

But, as I noted above, there’s a lot of good news for Merkel in advance of this autumn’s elections: Continue reading Merkel shouldn’t despair over center-right’s Lower Saxony loss →