Tag Archives: Hollande

Russia, United States

Putin tops world power rankings

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It’s far from scientific, but less than 24 hours after Republicans appeared to defeat US president Barack Obama in midterm congressional and gubernatorial elections, Russian president Vladimir Putin defeated him to the top spot on Forbes‘s 72 Most Powerful People in the World.USflagRussia Flag Icon

The rankings don’t really mean that much in the grand scheme of things, of course.

The Forbes rationale?

We took some heat last year when we named the Russian President as the most powerful man in the world, but after a year when Putin annexed Crimea, staged a proxy war in the Ukraine and inked a deal to build a more than $70 billion gas pipeline with China (the planet’s largest construction project) our choice simply seems prescient. Russia looks more and more like an energy-rich, nuclear-tipped rogue state with an undisputed, unpredictable and unaccountable head unconstrained by world opinion in pursuit of its goals.

Hard to argue with that, I guess.

But the rankings represent a nice snapshot of what the US (and even international) media mainstream believe to be the hierarchy of global power. Though I’m not sure why Mitch McConnell, soon to become the U.S. senate majority leader, isn’t on the list.

So who else placed in the sphere of world politics this year?

  • Obama ranked at No. 2 (From the Forbes mystics: ‘One word sums up his second place finish: caution. He has the power but has been too cautious to fully exercise it.’).
  • Chinese president Xi Jinping, who took office in late 2012 and early 2013, ranked at No. 3. (Tough break for the leader of the world’s most populous country!)
  • Pope Francis, ranked at No. 4, even though Argentina lost this year’s World Cup finals to Germany.
  • Angela Merkel, ranked at No. 5, third-term chancellor of Germany and the queen of the European Union.
  • Janet Yellen, ranked at No. 6, the chair of the US Federal Reserve.
  • Mario Draghi, ranked at No. 8, the president of the European Central Bank.
  • David Cameron, ranked (appropriately enough) at No. 10, the Conservative prime minister of the United Kingdom, who faces a tough reelection battle in May 2015.
  • Abdullah bin Abdul Aziz Al Saud, No. 11, the king of Saudi Arabia.
  • Narendra Modi, No. 15, India’s wildly popular new prime minister.
  • François Hollande, No. 17, France’s wildly unpopular president.
  • Ali Khamenei, No. 19, Iran’s supreme leader, especially as Iranian nuclear talks come to a crucial deadline this month.

Continue reading Putin tops world power rankings →

Uncategorized

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

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DSC00856

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

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

Deflation as Europe’s chief economic threat

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

We will do exactly that.

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

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

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The 13 key EU players in the proposed Juncker Commission

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

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

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

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

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

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

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

European Union, Italy, Poland

Tusk, Mogherini appointed to top European offices. What next?

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tuskrompuy

The European Council appointed Polish prime minister Donald Tusk as Council president and nominated Italian foreign minister Federica Mogherini as its new high representative for foreign affairs and security policy.Italy Flag IconEuropean_UnionPoland_Flag_Icon

The appointments of both Mogherini and Tusk were widely expected in the days and hours leading up to today’s EU summit.

Tusk (pictured above, left, with his predecessor, Herman Van Rompuy), age 57, was first elected prime minister in 2007 and reelected in 2011 as the leader of the center-right Platforma Obywatelska (PO, Civic Platform), each time defeating the more conservative, nationalist Prawo i Sprawiedliwość (PiS, Law and Justice). Essentially a moderate liberal and European federalist, Tusk has governed Poland for seven of the 10 years during which it’s been a member of the European Union. His elevation to the Council presidency marks the first time that a central or eastern European has held a top EU office, and it reflects Poland’s growing clout as one of the engines of the European Union.

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Mogherini (pictured above, right, with her predecessor, Baroness Catherine Ashton), age 41, only recently became Italy’s foreign minister in February, when prime minister Matteo Renzi maneuvered his way into the premiership. Though some Baltic and eastern European leaders doubted her level of experience and questioned whether she might be too sympathetic to Russia, she’s received strong marks in her six months as Italy’s foreign minister, marking her as a rising star in the new generation of leaders in Renzi’s center-left Partito Democratico (PD, Democratic Party).

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RELATED: Who is Federica Mogherini?

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Together with Jean-Claude Juncker, the former Luxembourg prime minister, who was nominated by the Council in June as the president of the European Commission, the EU’s chief executive and regulatory body, Tusk and Mogherini will be responsible for setting EU policy through 2019.

The Council presidency was created by the Treaty of Lisbon, which came into effect only in 2009. Before Lisbon, the Council president was simply the leader of the country that held the six-month rotating Council presidency. Van Rompuy, a former Belgian prime minister, served as the inaugural Council president. Upon the Council’s decision today, Tusk will begin his first term of 2.5 years in December, with the option for reappointment to a second term of 2.5 years.

The high representative role existed prior to the Lisbon Treaty, but it was greatly expanded when Ashton, a former Labour member of the House of Lords, was appointed to the role in 2009. Technically, Mogherini will serve as Italy’s representative on the European Commission and, accordingly, her term will run for five years and is  subject to the approval of the European parliament. 

Given their different backgrounds, Tusk and Mogherini were viewed as a complementary team. Eastern and central Europeans are delighted to see Tusk, a relatively hawkish voice on Russia, elevated to the Council presidency. Meanwhile, Mogherini brings gender diversity to the Commission, and she will join Martin Schulz, a German social democrat, as the chief voice of the center-left at the top of the EU policymaking apparatus.

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RELATED: Forecasting the EU power summit, part 1
Europe’s next high representative

RELATED: Forecasting the EU power summit, part 2
Europe’s next council president

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But what does it mean for the next five years of European policy? Continue reading Tusk, Mogherini appointed to top European offices. What next? →

France

Macron, France’s new economy minister, angers French left

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Emmanuel Macron

One day after French prime minister Manuel Valls resigned, forcing French president François Hollande to invite Valls to form a new government, it’s not clear that the new cabinet is going to quell a growing revolt on Hollande’s left flank.France Flag Icon

Valls, less than five months into his tenure, took the dramatic step Monday after weekend comments from former economy minister Arnaud Montebourg criticizing his own government’s austerity measures that have aimed to reduced French debt and cut payroll taxes, in part, through spending cuts.

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RELATED: Who is Manuel Valls? Meet France’s new prime minister

RELATED: Valls-Montebourg fissure could bring early French elections

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Montebourg, along with allies like education minister Benôit Hamon, a rising star of the French left, and culture minister Aurélie Filippetti, were banished from the second Valls government, replaced by relatively minor figures deemed more loyal to Valls and Hollande.

Though everyone else in the government remained in government, from foreign minister Laurent Fabius to finance minister Michael Sapin to ecology and energy minister Ségolène Royal, Montebourg was replaced by the Hollande loyalist Emmanuel Macron, a 36-year-old ex-banker and graduate of France’s elite-producing school, the École nationale d’administration.

Macron’s appointment sends a message about the orthodox program of the next government, and it wasn’t particularly subtle. Le Monde called him the ‘liberal sauce’ of the government, and Le Figaro called him the ‘anti-Montebourg.’

After his graduation from ENA, Macron (pictured above) worked as a finance official in the French government for four years, then worked for four years for Rothschild in the private sector. When Hollande was elected, he became one of the new president’s top Elysée aides as deputy secretary general of the presidency, where he once exclaimed that Hollande’s push to institute a 75% income tax rate for millionaires made France equivalent to ‘Cuba, but without the sun.’

The Valls-Sapin-Macron axis in the new French government will assure the French business and investor class that Hollande is serious about a proposed €40 billion payroll tax cut and continued devotion to budget discipline, to the growing outrage of the French left.  

The best thing the left wing of Hollande’s Parti socialiste (PS, Socialist Party) can say about the new cabinet is that Valls, at least, retained Christiane Taubira, a legislator from French Guiana who has served as minister of justice from the outset of the Hollande presidency, who pushed through perhaps the Hollande administration’s crowning social policy achievement in legalizing same-sex marriage last year, and who has often clashed brutally, if privately, with Valls, both as prime minister and when he previously served as interior minister, on economic policy as well as on her proposed prison reforms that would relax criminal penalties and eliminate mandatory sentencing for convicts.

There were other choices. Hollande and Valls might have convinced Martine Aubry, the runner-up to Hollande in the 2011 presidential contest and the author, as minister of social affairs in 2000, of the 35-hour workweek. After Montebourg, who routinely lambasted German chancellor Angela Merkel’s fiscal policy, told Indian steelmaker Lakshmi Mittal he wasn’t welcome to invest in France and who picked a fight with American tire producer Morry Taylor, Aubry’s presence in the cabinet might have been a win-win situation — replacing the mercurial Montebourg with a pillar of the French left.

Instead, Macron’s elevation is sure to accentuate the growing rift between the centrist and leftist wings of the Socialist Party, which could cause the government to fall later this year over the 2015 budget. That, in turn, could cause snap elections that the Socialists might lose altogether, ushering in another era of cohabitation, or divided government, with Hollande’s approval rating hovering between 17% and 20%. 

At the very least, the events of the last 48 hours potentially places Hollande in a difficult position — if Montebourg and the leftist rebels are strong enough, they can force Hollande and Valls either to accept their demands for a more growth-oriented budget this autumn or face a no-confidence vote. 

Amid high unemployment and a growth rate of just 0.1% in the last quarter, Hollande has struggled to implement policies to jumpstart GDP growth and economic activity. That’s left him open to criticism on the right and the left, including Montebourg, who on Saturday castigated Hollande’s administration for being held captive to Berlin — the last straw among the increasingly strident critiques from within his own government. 

France

Valls-Montebourg fissure could bring early French elections

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It was always a stretch to believe that there was enough room in France’s government for both Arnaud Montebourg and Manuel Valls.France Flag Icon

Montebourg, who represents the unapologetically socialist wing of France’s Parti socialiste (PS, Socialist Party), received a promotion in April as economy minister when French president François Hollande reshuffled his cabinet and replaced former prime minister Jean-Marc Ayrault with Valls. At the time, it was hardly clear that Montebourg deserved it after picking fights with prominent foreign businessmen in both the United States and India and waging an avowedly protectionist ‘Made in France’ campaign while serving as minister for industrial renewal. Montebourg (pictured above), with a charming grin, trim figure and a wavy swath of dark hair, who last weekend shared a photo of Loire Valley red wine on his Facebook feed, fits neatly into the American stereotype of the preening, tiresome, French socialist.

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RELATED: Who is Manuel Valls? Meet France’s new prime minister

RELATED: Sapin, Royal, Montebourg headline new French cabinet

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Valls, meanwhile, is leading Hollande’s government at a time when the Socialist administration is turning even more to the center, with a much-heraled (if hokey) ‘Responsibility Pact’ that aims to cajole French businesses into hiring a half-million new workers with the promise of a €40 billion payroll tax cut, financed by an even greater €50 billion in spending cuts. Though he’s regularly touted as a reformer, it’s more accurate to say that the Spanish-born Valls is a tough-minded ‘third way’ centrist who wants to rename the Socialist Party, which he considers too leftist. As interior minister, he showed he could be just as tough on immigration and crime as former conservative president Nicolas Sarkozy. When he became as prime minister in late March, Valls had the highest approval rating by far of any cabinet member. Today, his approval is sinking fast — an IFOP poll last weekend gave Hollande a 17% approval rating and Valls just 36% approval.

But Valls always had the support of Hollande and allies like finance minister Michael Sapin, and it was clear even in the spring that  Montebourg was destined to become more isolated than ever in the Valls era.

It took less than five months for the cabinet to rupture.  Montebourg publicly challenged Hollande over the weekend to rethink his economic policy in light of new data that show France’s economy remains stagnant — growing by just 0.1% in the last quarter, far below Hollande’s already-anemic target of 1%. Montebourg has also criticized Germany for encouraging austerity policies throughout the eurozone that he and other left-wing European politicians and economists blame for weakening the continent’s economic growth since the 2008-09 financial crisis.

In response, Valls orchestrating a dramatic resignation on Monday morning, though Hollande has given him a mandate to form a new government that won’t include Montebourg or allies like education minister Benoît Hamon and culture minister Aurelie Filippetti.

The drama surrounding this week’s reshuffle is hardly welcome so soon after Valls’s initial appointment, and Hollande risks a wider revolt on the French left that could endanger his agenda in the Assemblée nationale (National Assembly), where Socialist rebels could join legislators from the center-right Union pour un mouvement populaire (UMP, Union for a popular movement) in opposition to his agenda. Valls will introduce the 2015 budget in the autumn, and if he fails to pass it later this year, his government could fall and Hollande might be forced to call snap elections that the Socialists would almost certainly lose. Continue reading Valls-Montebourg fissure could bring early French elections →

Italy

As Italy assumes EU rotating presidency, Mogherini shines

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9Mogherini

I spoke to the London bureau of Voice of Russia earlier today to share some thoughts about Federica Mogherini (pictured above with Russian president Vladimir Putin), Italy’s still-new foreign minister, and her role in shaping EU foreign policy:Italy Flag Icon

He says that her appointment did surprise some because of her youth and the fact that she has no real top-level ministerial experience. However, “Within Prime Minister Matteo Renzi’s Democratic Party, she’s established quite a reputation as a rising star, particularly with regard to foreign policy. Beyond Renzi’s efforts of shaking up Italian policy paralysis, it was making quite a statement to appoint a 41-year-old woman as the new foreign minister”…

I argued that Mogherini and Renzi, who has now eclipsed French president François Hollande as the leading figure of the European left, are aiming for a more assertive Italian foreign policy voice. Mogherini has held forth on African migration to the European Union, Iran’s nuclear program, and the ongoing troubles in the Middle East, problems that have a significant diplomatic role for Russia as well as Europe and the United States.

I noted that though Mogherini, who is in Ukraine and Russia this week for talks with officials, is slightly more hawkish with respect to EU sanctions against Russia than perhaps former prime minister Silvio Berlusconi or former German chancellor Gerhard Schröder, her top priority is maintaining a united EU foreign policy, especially nine days into Italy’s assumption of the EU six-month rotating presidency.

Italy has grown closer to Russia over the past two decades, and Putin and Berlusconi enjoyed a strong personal relationship that bolstered ties between the two countries. In many ways, that makes Mogherini, like German foreign minister Frank-Walter Steinmeier, is a great EU conduit to Russia:

“I think it’s better to say that she’s likely to take a unified line, depending on where other leaders in the EU stand. In many ways, I think Mogherini is a great conduit to help smooth EU talks with [Russian Foreign Minister] Lavrov and other Russian officials.”

Though Mogherini could be mentioned as a candidate to succeed Catherine Ashton as the EU high representative later this year, I noted that Mogherini’s performance, strong as it may be, will be one factor in a set of discussions among the 28 EU member-state leaders that will also consider which states get which portfolios within the European Commission and that will consider the new president of the European Council. But with one of the frontrunners, Poland’s hawkish foreign minister Radek Sikorski, in some trouble for impolitic comments about his country’s bilateral relationship with the United States, Mogherini could emerge as a more conciliatory and diplomatic choice.

Photo credit to RIA Novosti.

France

Don’t rule out Sarkozy just yet for 2017 comeback

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sarko

At the rate that the French political elite is going, Dominique Strauss-Kahn might be the last palatable option standing to challenge nationalist Marine Le Pen in the 2017 election.France Flag Icon

The decision by French prosecutors to open a formal investigation into former president Nicolas Sarkozy today, following his detention on Tuesday for questioning, is certain to rupture Sarkozy’s comeback plans to lead the French center-right in the April 2017 presidential election, leaving both major parties sullied by unpopular, unimaginative and possibly corrupt leadership.

But even as French and global analysts begin writing Sarkozy’s obituary, the current investigation, which involves Sarkozy’s alleged attempts to trade a job in plush Monaco to a judge in exchange for illegal information relating to another investigation, may not necessarily torpedo Sarkozy, even as the former president faces additional legal troubles in related corruption cases.

That will be especially true if Sarkozy is ultimately exonerated, given the aggressiveness with which French investigators have pursued Sarkozy. If he’s not found guilty, the investigations could actually strengthen Sarkozy, allowing him to play victim against an aggressive, out-of-control French judicial system. That’s a well-worn path that’s worked for other European leaders in the past, including former Italian prime minister Silvio Berlusconi. Sarkozy has already compared the phone-tapping to East German Stasi tactics, and he appeared on French television Wednesday night to blast the ‘political exploitation’ of the legal system.

Nevertheless, Sarkozy will find it difficult to proceed with plans to retake the presidency of his center-right Union pour un mouvement populaire (UMP, Union for a popular movement) later this year. Sarkozy is believed to be keen on returning to the UMP presidency in light of former UMP president Jean-François Copé’s resignation in late May, related to accusations of falsifying 2007 campaign invoices to evade spending limits. 

The current scandal revolves around phone taps that revealed conversations between Sarkozy and his attorney, Thierry Herzog. Those taps, however, were originally designed to gather information about whether Sarkozy’s 2007 campaign was illegally financed with up to €50 million from former Libyan president Muammar Gaddafi. 

The Herzog conversations, however, relate to yet another scandal, the  Bettencourt affair, in which L’Oréal heiress and socialite Liliane Bettencourt may have ferried illegal funding to Sarkozy’s reelection efforts. Though investigators ruled out charging Sarkozy in the Bettencourt matter, the case revolved around the admissibility of Sarkozy’s presidential diaries.

Sure, that’s a lot of scandal and a lot of circumstantial noise surrounding Sarkozy. But what happens if Sarkozy actually goes to jail?  Continue reading Don’t rule out Sarkozy just yet for 2017 comeback →

European Union

European Council proposes Juncker as Commission president

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juncker

Bowing to pressure from European parliamentary leaders, the European Council has proposed as its candidate for the presidency of the European Commission Jean-Claude Juncker, the former prime minister of Luxembourg and former head of the Eurogroup, the informal gathering of the eurozone finance ministers. European_Union

That makes it virtually certain that the European Parliament will elect Juncker (pictured above) as the next Commission president, likely with the full support of the two major pan-European parties in the Parliament, Juncker’s own center-right European People’s Party (EPP) and the center-left, social democratic Party of European Socialists (PES). It also likely means that the PES candidate for the Commission  presidency, Martin Schulz, will become the Commission vice president. 

It’s obviously a defeat for British prime minister David Cameron who, just last week, was still holding out hope that he could pull together a blocking minority to keep Juncker from receiving the Council’s endorsement. But by the time the Council gathered to vote, only Hungarian prime minister Viktor Orbán joined Cameron in opposing Juncker. Not only did Cameron fail to win over allies, he failed to keep both Dutch prime minister Mark Rutte and Swedish prime minister Frederik Reinfeldt, neither of whom are enthusiastic about the prospects of a Juncker candidacy.

Contacted by a reporter for the Moscow-based RIA Novosti earlier today, I had a chance to put together some quick thoughts on what the Juncker decision means. Here are my real-time responses, which will double as my real-time analysis on where things go from here.  

On how the choice reflects the European parliamentary elections on May 25:

The choice reflects the fact that Juncker was the candidate of the European People’s Party, the pan-European group of center-right, Christian democratic parties, and the EPP won the greatest number of seats in the European parliamentary elections on May 25. The EPP nominated Juncker as its candidate for the European Commission presidency prior to the May 25 parliamentary elections, just as several other European parliamentary parties nominated their own candidates. The candidates — the German term ‘Spitzenkandidaten‘ developed widespread use across Europe — campaigned throughout the spring, and they participated in a set of debates on the EU’s future.

Under the Lisbon treaty, the European Council is supposed to ‘propose’ a candidate for Commission president, which will be ‘elected’ by the European Parliament, with the Council ‘taking into account’ the results of the parliamentary election. No one knows exactly what that means, but Juncker and the other parliamentary leaders believe firmly that the Council must propose Juncker as its candidate. In so doing today, the Council has set an important precedent for future parliamentary elections, though national leaders will be loathe to admit it.

Proponents of the Spitzenkandidaten system argue that Juncker represents the will of the European electorate, because he’s the candidate of the party that won the most votes, but it’s not so simple as that. There’s no real indication that the majority of European voters were voting on the basis of this or that Commission presidential candidate. Voter turnout has dropped significantly since the first European elections in 1979, and voters often cast their ballots on the basis of national governments or other factors. To the extent there was a unifying theme to the elections, it was the rise of euroscepticism on both the far right and the far left, with the victories of groups like the United Kingdom Independence Party, France’s Front national (National Front) and Denmark’s Dansk Folkeparti (People’s Party). Whatever ‘mandate’ you take away from the European elections, it’s hard to argue there’s a groundswell of genuine democratic support for Juncker. It was only last October that Juncker’s own center-right Christian Social People’s Party suffered so many losses in Luxembourg’s national elections that he was forced out as prime minister after 18 years.

Continue reading European Council proposes Juncker as Commission president →

European Union

It won’t necessarily take much to block Juncker in Council vote

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David Cameron and Angela Merkel

One fact that’s becoming increasingly clear in the current tussle over electing a new president of the European Commission is that the eventual candidate must win a qualified majority on the European Council, as well as an absolute majority in the European Parliament. European_Union

Though the rules for qualified majority voting on the Council are greatly simplified under the Treaty of Lisbon, it’s worth noting that those rules don’t take effect until November 2014.

That means that the old rules, under the Treaty of Nice, will be in effect during the current fight this summer over whether former Luxembourg prime minister Jean-Claude Juncker, the candidate of the European People’s Party (EPP), can become the next Commission president.

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

RELATED: The mother-of-all-battles over
European integration has begun

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With the current president of the Council, Herman Van Rompuy, currently taking the lead on the process, the Council will submit a formal proposal for Commission president during its next official summit on June 26 and 27.

That explains why the focus of the fight over Juncker has moved from the Parliament to a fight between German chancellor Angela Merkel and British prime minister David Cameron (pictured above, last week, left, with Swedish prime minister Frederik Reinfeldt and Dutch prime minister Mark Rutte).

Under the Lisbon rules, qualified majority voting means that a proposal under consideration by the Council must meet three requirements:

  • a majority of countries within the European Union (15 out of 28 countries);
  • a supermajority (74%) of countries according to a formula of voting weights; and
  • a supermajority of countries representing  at least 62% of the EU-wide population.

The trickiest hurdle is meeting the 74% hurdle. The system assigns weights, roughly corresponding to population, to each country, with a maximum of 29 for each of Germany, France, the United Kingdom and Italy, and a minimum of three for the smallest member, Malta. With a total of 352 weighted votes after Croatia’s July 2013 EU accession, that means Juncker must win at least 260 weighted votes. Conversely, it means that a minority consisting of 93 weighted votes can block Juncker.

Cameron is committed to opposing Juncker.

Hungarian prime minister Viktor Orbán, who belongs to the EPP, has also opposed Juncker in retribution for Luxembourg’s outspoken role on the Commission in the past five years attacking Orbán’s questionable respect for democratic norms and press freedom in Hungary.

Reinfeldt, the Swedish prime minister, has also voiced doubts about Juncker’s candidacy, even though he also belongs to the EPP. If Juncker fails to pass muster in the Council, Reinfeldt himself has been mentioned as a compromise candidate, given the likelihood that his center-right Moderata samlingspartiet (Moderate Party) is expected to lose national elections in September.

Rutte, the Dutch prime minister, has joined Reinfeldt in his hesitation over Juncker. Rutte, like Cameron and Reinfeldt, is generally a Merkel ally on European economic policy and the need for trimming national budgets, but he belongs to the Alliance of Liberals and Democrats in Europe (ALDE), the third-largest European parliamentary bloc.

If Sweden (10 weighted votes) and The Netherlands (13 votes) join Hungary (12 votes) and the United Kingdom (29 votes), Cameron will have 64 votes to block Juncker — and he’ll need just 29 more votes to do so.

Those votes could come from Italy, where prime minister Matteo Renzi has demanded a more flexible interpretation of EU budget rules and a greater emphasis on economic growth stimulation (instead of austerity) in exchange for backing Juncker. A deal seemed imminent earlier this week, though Renzi hasn’t yet declared either support or opposition for Juncker.

Right now, the momentum seems to be with Merkel and Juncker, and flowing away from Cameron. Either Rutte or Reinfeldt could back down from their criticisms. Furthermore, Renzi might be wary of alienating Merkel just four months into his premiership and days before Italy assumes the six-month rotating Council presidency. But Cameron, who has suggested Denmark’s social democratic prime minister Helle Thorning-Schmidt as an alternative Commission president, might yet persuade Renzi to join him for at least one shot at obtaining a more reformist Commission president than Juncker.

It’s worth noting that French president François Hollande, like Renzi, would like to see a greater emphasis on growth at the European level, and he hasn’t firmly indicated that he’ll support Juncker, either.

Continue reading It won’t necessarily take much to block Juncker in Council vote →

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) →

France

Sapin, Royal, Montebourg headline new French cabinet

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Michel Sapin

Though French president François Hollande on Monday promised a gouvernement de combat in his cabinet reshuffle, it looks like the government he’s chosen might wind up spending more time combatting one another that the myriad economic challenges that France faces.
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Just 48 hours after naming interior minister Manuel Valls, the hard-charging, Roma-busting strongman of the Parti socialiste (PS, Socialist Party) as France’s new prime minister, Hollande announced the rest of his cabinet reshuffle today.

Though the return of Ségolène Royal, Hollande’s partner of three decades and the 2007 Socialist Party’s presidential candidate, is sure to top most headlines, the heart of the cabinet reshuffle are Hollande’s schizophrenic choices for finance minister, Michel Sapin (pictured above), and economy minister, Arnaud Montebourg.

At first glance, Hollande’s new slimmed-down cabinet (16 ministers instead of 20) seems like a kind of ‘team of rivals,’ given that Valls, Montebourg and Royal all campaigned for the Socialist Party’s 2012 presidential nomination — the only major rival not to hold a post in the new government is Martine Aubry, a longtime champion of the party’s left wing and the former minister who introduced France’s 35-hour workweek (a policy that Valls stridently opposes).

But it’s hardly Lincolnesque.

Sapin and Royal are assuming roles they first held 22 years ago, while Montebourg is a leftist whose views are at extreme odds with the economic policy that Hollande and Valls are expected to pursue over the next three years.  Continue reading Sapin, Royal, Montebourg headline new French cabinet →

France

Who is Manuel Valls? Meet France’s new prime minister

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In choosing Manuel Valls, the popular interior minister, as France’s new prime minister, French president François Hollande is taking a risk that elevating the most popular minister in his government will attract support from among the wider French electorate without alienating the leftist core of the Parti socialiste (PS, Socialist Party).France Flag Icon

Pivoting off the poor Socialist showing in last weekend’s nationwide municipal elections, Hollande’s cabinet reshuffle is a sign that he understands he has largely lost the trust of the French electorate in less than two years. Other ministers, including finance minister Pierre Moscovici, could also lose their jobs in a reshuffle to be announced later this week.

Prime minister Jean-Marc Ayrault resigned today after just 22 months on the job. LIke Hollande, Ayrault has become increasingly unpopular as the government has pursued aggressive measures to stabilize France’s budget, including tax increases and adjustments and cuts to France’s pension system — all in the face of a sluggish economy, a 10.8% unemployment rate and a greater crisis in confidence over France’s role within the European Union and the world. 

In a short statement announcing Valls, Hollande pledged to continue pursing a payroll tax cut and additional pension and labor law reforms as part of a recent attempt to win support from the French business community, a series of reforms that Valls has enthusiastically promoted throughout his career. He also promised that Valls would lead a ‘combative government,’ which sounds like somewhat of an understatement in translation from a gouvernement de combat.

In light of Ayrault’s highly collaborative style, and Valls’s much more aggressive style, even the original French seems like an understatement.

But while the latest IFOP poll from mid-March gave Hollande a 23% approval rating (his highest, in fact, since last October) and Ayrault a 26% approval rating, Valls has an approval rating of 63%. That goes a long way in explaining why Hollande is replacing Ayrault with Valls today.

It’s not a choice without risks. Valls, a centrist with controversial views about the Roma and immigration, could divide the French left. If Hollande’s unpopularity continues, he could taint one of the few remaining popular figures within the Socialist Party. If Valls succeeds, he could supplant Hollande as the more attractive presidential candidate in 2017.

Continue reading Who is Manuel Valls? Meet France’s new prime minister →

European Union, France, The Netherlands

Le Pen v. Wilders: a tale of two far-right European movements

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The big story from Sunday’s municipal elections in France is the success of Marine Le Pen’s far-right Front national (FN, National Front), overshadowing the marquee Paris mayoral election.France Flag IconNetherlands Flag IconEuropean_Union

The far-right won the mayoral race in Hénin-Beaumont, a former mining town in the north, in a rare first-round victory, the FN came in second in Marseille, France’s second-largest city, and it led in at least six other locations as France prepares for second-round runoffs on March 30.

The result should certainly boost Le Pen in her efforts to win  support in European parliamentary elections in May — and to unite the populist hard right across the continent.

According to preliminary results, the Front national won just 4.65% of the national vote. That’s a big deal because the party was running in just 597 of around 37,000 jurisdictions — it’s a massive increase from the 2008 municipal results, when the FN won around 1% and ran in just 119 constituencies. 

The other narrative from Sunday’s vote is the collapse of France’s center-left — president François Hollande’s Parti socialiste (PS, Socialist Party) won 37.74% nationally, while the center-right Union pour un mouvement populaire (UMP, Union for a popular movement) of former president Nicolas Sarkozy won 46.54% nationally. The bright spot for the Socialists remains Paris, where first deputy mayor Anne Hidalgo is the slight favorite to win a runoff against former Sarkozy campaign spokesperson and ecology minister Nathalie Kosciusko-Morizet — but don’t rule out an upset next Sunday there, either.

The success in the 2014 municipal elections is just the latest chapter for Le Pen’s rebranding of the Front national in France as a slightly more moderate alternative than the party her father, Jean-Marie Le Pen, led for decades. It’s harder today to target the Front national as a xenophobic, anti-Semitic fringe, because Le Pen has focused on an agenda much heavier on euroskepticism and economic nationalism. While the Front national isn’t exactly immigrant-friendly, its position has largely converged with the UMP’s position since the Sarkozy presidency, which embraced hard-right positions on immigration and law-and-order issues. By shifting rightward, Sarkozy may have sidelined Le Pen during his presidency and co-opted her supporters, but today, Sarkozy is almost as responsible as Le Pen for bringing the Front national within the political mainstream.

With the line blurring between the UMP and the Front national, Le Pen could become the chief voice of the French right in 2017, especially if the UMP succumbs to more infighting between its right-wing leader Jean-François Copé and the more moderate former prime minister François Fillon. The next presidential election is still a long way off, but if Sarkozy doesn’t run for the presidency in 2017, Le Pen stands just as much chance as Copé, Fillon or any other UMP figure of representing the French right in the second round.

More immediately troubling for France’s political elite are the European parliamentary elections in May. Despite its breakthrough performance on Sunday, the Front national isn’t about to overrun the city halls of France. Its victory is more symbolic than substantive. But if it’s one thing to turn over your local government to Marine Le Pen, it’s a far different thing to support the Front national as a protest vote with respect to European Union policy.

Polls show that the Front national and the UMP are competing for first place in the European elections within France — the most recent Opinion Way poll from early March shows the UMP winning  22%, the FN winning 21% and the Socialists just 17%. It wouldn’t be surprising to see a wave of undecided voters support the Front national at the last moment, nor would it be a surprise to learn that polling surveys currently underestimate FN support.

Extremists on both the far left and the far right are gaining strength throughout the entire European Union. That’s perhaps understandable, given the harsh economic conditions that have plagued Europe since the last EU-wide elections in 2009. But the euroskeptic right, in particular, seems poised for a breakthrough. Nigel Farage hopes to lead the anti-EU United Kingdom Independence Party to a breakthrough performance in May, and the Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) is tied for first place in polls in Austria.

But just as Le Pen hits her stride, another standard-bearer of the hard right, Geert Wilders, found himself in free fall last week after pledging to allow fewer Moroccans into the Netherlands, remarks that have launched a cascade of criticism and a handful of defections from his party: Continue reading Le Pen v. Wilders: a tale of two far-right European movements →

France, Japan, Maldives, Osaka, Paris

Weekend municipal elections from Japan to France

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It’s another busy weekend for world politics — especially with regard to municipal elections in two G-8 countries.

Here’s a quick weekend update of the three world elections taking place today and tomorrow.

Maldivian parliamentary electionsmaldives

First, the Maldives on Saturday elected all 77 members of the Majlis, the unicameral Maldivian parliament. The parliamentary elections follow the highly botched presidential election last autumn — the initial September vote was annulled and Maldivian election officials postponed the vote to the point of constitutional crisis. By the time the country held a new vote in November, it pushed through a runoff just five days later. Former president Mohammed Nasheed, who won the first round, lost the runoff to Abdulla Yameen, the half-brother of Maumoon Abdul Gayoom, who previously governed the Maldives between 1978 and 2008. 

The polls are already closed there, and the voting has gone smoothly, according to initial reports. Results are expected on Sunday, and the contest pits Nasheed’s Maldivian Democratic Party against Gayoom’s Progressive Party of Maldives. 

Osaka municipal electionosakacity osakaprefectureJapan

In Japan, Osaka’s controversial mayor Tōru Hashimoto (橋下徹) is forcing a mayoral election after resigning in February in what amounts to a power play over his plan to unite the city of Osaka and Osaka prefecture into a larger ‘Osaka-to’ region.

Though no major party is running a candidate against Hashimoto (pictured above), the popularity of the former television personality has fallen rapidly both at the national and local level.

His bid to join forces with former Tokyo mayor Shintaro Ishihara to form the right-wing Japan Restoration Party (日本維新の会, Nippon Ishin no Kai) made waves in December 2012 when it nearly became the second-largest force in the lower house of the Japanese Diet, but Hashimoto’s rising star has faded over the past 15 months, not least of all because of his insensitive comments that attempted to justify the use of ‘comfort women’ — Korean sexual slaves — by Japanese soldiers during World War II.

Though Hashimoto will likely win reelection in the Osaka vote on Sunday, his critics have attacked the election as an unnecessary waste of taxpayer money.

Hashimoto, who served as the governor of Osaka prefecture between 2008 and 2011, has served as the city of Osaka’s mayor since 2011. In 2010, he founded the Osaka Restoration Association (大阪維新の会, Ōsaka Ishin no Kai) under the banner of ‘One Osaka,’ his longtime campaign to unite the prefecture and the city as one larger metropolis, like the structure of Tokyo’s combined metropolitan government. Osaka is Japan’s second-most populous metropolitan area, and Osaka prefecture, which encompasses the city of Osaka, is home to 8.9 million residents.

The plan faces opposition by the Osaka city council, where Hashimoto’s Osaka Restoration Association doesn’t hold a majority. Though there might be gains in merging the prefecture and city governments, critics fear that Hashimoto is more motivated by the possibility of creating a regional political empire. The central government also opposes the plan, because it might mean ceding power from the federal to the prefectural level.

Paris (and other French) municipal electionsFrance Flag Iconparis

French municipal elections are also taking place this weekend — the first round will take place Sunday, with second rounds to follow next Sunday, March 30.

The indisputable highlight of the French elections is the Paris mayoral race, with Bertrand Delanoë stepping down after 13 years in the office. The race will almost certainly result in a runoff next week between first deputy mayor Anne Hidalgo, the Andalusia-born candidate of the Parti socialiste (PS, Socialist Party), and Nathalie Kosciusko-Morizet, a moderate who served as a former minister of ecology, sustainable development, transport and housing and as campaign spokesperson for Nicolas Sarkozy in 2012.

The vote takes place amid one of the worst bouts of air pollution that Paris has seen in recent years, which caused the city government to impose emergency restrictions on automobiles last week.

Though polls forecast a tight race, Hidalgo has held a consistent, if narrow, lead over Kosciusko-Morizet for nearly a year — the most recent BVA poll from mid-March predicted that Hidalgo would win the second round by a margin of 53% to 47%.

Outside Paris, however, the elections are a test for the struggling administration of France’s socialist president François Hollande, and an opportnity for France’s far-right Front national (FN, National Front), with its leader Marine Le Pen hoping to win at least some mid-sized towns and villages in the FN’s traditional stronghold in the Mediterranean south and in the economically depressed post-industrial north.