Tag Archives: juncker

Greece

Three ways Europe and Greece could blow their last chance at a debt deal

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varoufakiseuclidPhoto credit to EPA/BGNES.

The world woke up to the news Monday morning that outspoken Greek finance minister Yanis Varoufakis had, at long lost, been dismissed by his prime minister, Alexis Tsipras.Greece Flag Icon

Varoufakis (pictured above, right, behind Greece’s new finance minister, Euclid Tsakalotos) had become, to say the least, a brake on negotiations with the Eurogroup, even though his widespread popularity and strident anti-austerity boosted Tsipras’s government to a stunning victory in Sunday’s debt negotiations referendum, whereby 61.31% of voters rejected a prior plan offered by Greece’s European creditors.

European officials struggled to reach consensus with Varoufakis, who just last week, in the middle of the rushed referendum campaign, referred to his European ministerial colleagues as ‘terrorists.’ Tsakalotos, an Oxford-trained economist, is expected to take a more mild-mannered approach, and he already supplanted Varoufakis as Greece’s chief negotiator back in April. That was, however, only to the extent anyone could supplant the motorbike-riding, free-wheeling Varoufakis, who gave his final press conference as finance minister Sunday night in a t-shirt.

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RELATED: If Grexit comes,
Greece will have wasted five years in depression

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Varoufakis’s resignation, along with a pledge of national unity across Greece’s mainstream domestic political spectrum, breathed new life into hopes for last-minute talks for a third bailout, allowing the country to reopen its illiquid and perhaps insolvent banks, lift (at least partially) capital controls that have limited daily cash withdrawals to €60, restore liquidity to ATMs that have run out of cash altogether, address Greece’s €1.6 billion default on June 30 to the International Monetary Fund and meet a July 20 deadline to make a €3.5 billion payment to the European Central Bank.

For all the celebration that followed the resounding ‘no’ vote in Sunday’s referendum, the coming Sunday could bring financial austerity far more severe than Greece has known in the past five years, marked by a nearly 30% drop in GDP growth and a 26% unemployment rate. Failure to reach a deal could result in a shortage of cash, food, medicine and so many other necessities to the extent that European leaders are whispering that Greece could require humanitarian aid.

Notwithstanding the dire consequences, a deal is not necessarily likely — or even possible. If they’re lucky, the European Union has five days to prevent Grexit. Here are four reasons why it will be so difficult in the hours ahead.  Continue reading Three ways Europe and Greece could blow their last chance at a debt deal →

Denmark, European Union

Vestager’s profile hangs over Danish election

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She’s not running for anything in Denmark’s parliamentary elections on Thursday, but even from Brussels, Margrethe Vestager, the country’s European commissioner for the high-profile competition portfolio, looms larger than just about anyone on the Danish political scene — included prime minister Helle Thorning-Schmidt and her main challenger for the premiership.European_Uniondenmark flag

Less than a year into her tenure as the EU’s top cop on competition law, Vestager has moved forward with narrow charges (in the Commission’s parlance, a ‘Statement of Objections’) against Google for allegedly prioritizing search results from its own Google Shopping program over other results. Hardly a week later, she filed charges against the Russian state energy company, Gazprom, for anti-competitive behavior that the Commission argues resulted in higher prices in the Baltics, Poland and Bulgaria. In recent weeks, Vestager also open an investigation into whether Amazon was abusing its dominant market position to restrict innovation and competition in the e-book industry.

That’s made her, increasingly, a bête noire in the powerful Silicon Valley. Mike Honda, a Democratic member of the US House of Representatives for a California district representing Silicon Valley, denounced the charges in April, arguing that Google was instead one of the most ‘innovative and life-changing technologies in human history.’

It’s not just American and Russian companies — Vestager is also looking into allegations that Luxembourg’s aggressive tax deals with companies violated European Union state aid rules, even though most of the tax decisions came during the administration of Luxembourg’s prime minister Jean-Claude Juncker, now the president of the European Commission and who nominated Vestager for the role last autumn. She’s also investigating several European governments for providing assistance to their respective utilities industries.

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RELATED: How Helle got her groove back in Denmark’s snap election

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Not since Mario Monti took on General Electric’s Jack Welch and Microsoft’s Bill Gates has an EU antitrust enforcer taken such an aggressive tone with companies operating in the EU marketplace. It’s certainly a more direct, even transparent way of proceeding that her predecessor, Spanish commissioner Joaquín Almunia, who preferred negotiating closed-door settlements — a tactic that did not work, so far, with Google. In a throwback to the Monti days, Vestager last week threatened to block GE’s bid to acquire the French energy business Alstom without further modifications to the proposed merger — and that’s after the French government last year stepped in to demand a better deal.  Continue reading Vestager’s profile hangs over Danish election →

European Union, Greece

What a Eurogroup-brokered deal with Greece might look like

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

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

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

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

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

RELATED: Seven lessons from the Greek election results

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

European Union, Luxembourg

Juncker’s first ‘scandal’ shouldn’t merit resignation calls

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I spoke with RIA Novosti earlier today about the revelations that Luxembourg’s government has been much more intimately involved in granting tax concessions to international companies.European_UnionluxembourgThose revelations come less than a week after former Luxembourgish prime minister Jean-Claude Juncker officially took office as president of the European Commission.Marine Le Pen, the leader of the far-right, eurosceptic Front national (National Front) has already called on him to resign.
My full remarks follow below:

It’s a very embarrassing position for Juncker, because he only took office as the president of the European Commission a few days ago, and he’ll take some perhaps well-deserved political heat for the matter, and it probably reduces his credibility on tax reform matters.

Everyone has, in the back of their minds, the example of the Santer Commission, which resigned en masse in 1999 over corruption. For now, the revelations do not appear to implicate Juncker in anything more than the kind of aggressive steps that state leaders sometimes take to attract foreign development and investment. If, for example, Juncker was found to have taken personal kickbacks in exchange for favorable treatment, it would be a much more serious allegation for himself, for the Commission, and for confidence in Luxembourg’s institutions. But there’s no evidence of that.

Meanwhile, the Commission is a professional regulatory body, and any investigations into Amazon or other companies that received state aid in potential violation of European law will be conducted by Denmark’s Margrethe Vestager, the EU commissioner for competition, who is a former minister of economic affairs and deputy prime minister. It’s helpful, from an ideological perspective, that Vestager comes from the Danish Social Liberal Party, which should give some comfort to the European Parliament’s leftists. Ultimately, this is less a ‘scandal’ than a valid policy issue, insofar as Luxembourg and other countries have long pushed the envelope in making their jurisdictions extremely favorable to international companies. Note the Irish government’s decision last month to revise the ‘double Irish’ structure so common in the taxation of intellectual property assets. So as the Commission and other EU (and even international) institutions look into these decisions, it will help clarify the line between permissible and impermissible in the future.

Marine Le Pen is hardly the best critic on the matter, because her party has long been in favor of lowering taxes and promoting the kind of economic nationalist steps that Luxembourg’s officials may have taken with many international companies. Her call for Juncker’s resignation isn’t credible, but it’s very important for her to maximize support among the eurosceptic French right if she’s going to have any credible shot at winning the French presidency in 2017, a task made much more difficult by the return of former president Nicolas Sarkozy.

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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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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? →

European Union

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

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When the European Council meets on Saturday for a summit of all 28 leaders within the European Union, it will not only choose a new high representative for foreign affairs and security policy, but also a new president of the European Council.European_Union

It’s still very much a new role within the matrix of EU power — it was created only in 2007 as part of the Treaty of Lisbon, and Herman Van Rompuy, a former liberal Belgian prime minister, was selected in 2009 to take the role when the Lisbon Treaty came into effect.

For a position that had been, perhaps too optimistically described as the ‘presidency of Europe,’ Van Rompuy has hardly been the European Union’s George Washington. For more than three decades, the ‘president’ of the European Council, which is really just the collection of all 28 EU leaders, was the head of state or government of the country that held the six-month rotating Council presidency. That Council presidency still rotates (Italy is currently heading the Council), but the Lisbon Treaty created a full-time figure who could fill up to two 2.5-year terms to direct Council and EU policy.

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

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But it hasn’t exactly been clear when the power of the European Commission, the chief executive and administrative body of the European Union, ends and the European Council presidency’s power begins. Often in the past five years, the roles of Van Rompuy and outgoing Commission president José Manuel Barroso, a former conservative Portuguese prime minister, have blurred.

Defining those lines will certainly be one of the most vital institutional issues that incoming Commission president Jean-Claude Juncker, a former Christian democratic prime minister of Luxembourg,  and his Council counterpart, will determine in the next five years.

Even in the past 24 hours, news reports give the young Italian foreign minister Federica Mogherini an even greater edge to become Europe’s next high representative for foreign affairs and security policy, seemingly eclipsing the chances of Polish prime minister Radek Sikorski and Bulgarian European commissioner Kristalina Georgieva.

But it’s clear that the Council presidency role will follow from two factors — first, the June decision to appoint Juncker as the Commission president and, second, the decision in the next 36 hours over Europe’s foreign policy supremo.

If it’s Mogherini, as expected, the conventional wisdom is that, as Mogherini is a center-left, Italian woman, the Council presidency must go to an official from Central and Eastern Europe. That points to Polish prime minister Donald Tusk (pictured above) as the wide frontrunner for the Council presidency. If, for some reason, Tusk turns down the idea of moving from Warsaw to Brussels, former Latvian prime minister Valdis Dombrovskis,  former Estonian prime minister Andrus Ansip or former Finnish prime minister Jykri Katainen, all of whom are already candidates to serve as their respective countries’ commissioners in Brussels, are ready alternatives. 

If it’s Sikorski, which now seems less and less likely, the conventional wisdom is that a center-right Polish official will require the balance of a center-left woman. The frontrunner would then be Danish prime minister Helle Thorning-Schmidt.

If it’s the dark-horse candidate, Georgieva, a Bulgarian and the current European  commissioner for humanitarian aid, there won’t be incredible pressure to appoint a woman as Council president, but there will be pressure to appoint a center-left official, which still favors Thorning-Schmidt. Nevertheless, a surprise choice like Georgieva for foreign policy could open deliberations to truly dark-horse candidates, including liberals like Ansip or former Commission presidential candidate and former Belgian prime minister Guy Verhofstadt. 

Tusk, therefore, remains the frontrunner.  Continue reading Forecasting the EU power summit, part 2: Europe’s next Council president →

European Union

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

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Mogherini

With the European parliamentary elections finished on May 25, and the emergence of former Luxembourg prime minister Jean-Claude Juncker as the president of the European Council nearly a month later, the next two pieces of EU governance will be determined at a summit of all 28 leaders of the European Union on Saturday.European_Union

The EU leaders, who together comprise the membership of the European Council, will meet at a summit on August 30 that is expected to determine outgoing Council president Herman van Rompuy’s successor, an office created under the Treaty of Lisbon that went into effect in 2009. 

They are also expected to appoint a candidate to succeed Catherine Ashton as high representative for foreign affairs and security policy, as well as informally consider which European Commission will hold which portfolios, though those decisions are unlikely to be announced until later in the autumn. 

It’s easiest to think about the two offices sequentially — first high representative, then Council president. That’s because there are just two major candidates viewed as credible possibilities for the EU foreign policy role — Italian foreign minister Federica Mogherini and Polish foreign minister Radek Sikorski — with a third, dark-horse candidate in Kristalina Georgieva, an economist and Bulgaria’s current commissioner, responsible for humanitarian aid and international cooperation.

The choices for the European Council presidency will  follow from the choice of high representative, and from the decision to name Juncker, a center-right federalist from Western Europe, as Commission president. (More on the Council presidency will follow in part 2).

From the available public reports, Mogherini (pictured above) appears to be the slight favorite for the role. Continue reading Forecasting the EU power summit, part 1: Europe’s next high representative →

Hungary

Orbán designs to transform Hungary into ‘illiberal’ state

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orbantyrant

It sounds like a headline from the European version of The Onion, but Viktor Orbán, just months out from winning a landslide reelection in April, has announced his intentions to turn Hungary into an ‘illiberal state,’ modeled after China or Russia:Hungary Flag Icon

The global financial crisis in 2008 showed that “liberal democratic states can’t remain globally competitive,” Orban said on July 26 at a retreat of ethnic Hungarian leaders in Baile Tusnad,Romania.

“I don’t think that our European Union membership precludes us from building an illiberal new state based on national foundations,” Orban said, according to the video of his speech on the government’s website. He listed Russia, Turkey and China as examples of “successful” nations, “none of which is liberal and some of which aren’t even democracies.”

It’s hard to know just how seriously to take Orbán’s latest comments.

If his first government, over a decade ago, was traditionally liberal conservative, Orbán’s most recent term was marked by more nationalist, illiberal and authoritarian tendencies. It’s not hard to believe that, with a two-thirds majority behind him, Orbán could turn fully away from liberal democracy and toward illiberal authoritarianism in his third term.

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RELATED: Hungarian election results : A historic win for Orbán

RELATED: Lessons from Hungary’s election —
and challenges for its future

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Other Hungarian commentators argue that Orbán’s emphasis was on the liberal market system and its failures during the 2008-09 global financial crisis. In that sense, Orbán may have been calling merely for a shift from a European social welfare state to a more state capitalist model. Though Orbán came to power as a liberal market proponent, his 2010-14 government engaged in healthy spending on public works programs,  nationalized Hungary’s private pensions system and introduced the highest VAT rate in the European Union (27%) in a bid to end Hungary’s  €20 billion post-crisis loan program with the International Monetary Fund. Nonetheless, even significant moves in that direction could spook global markets, send the Hungarian forint plummeting or dampen growth and investment.

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Orbán’s weekend speech came as he, like Russian president Vladimir Putin (pictured above, right, with Orbán), has called for restrictions on international NGOs throughout the country. Though Hungarians revolted in 1956 against Soviet rule and in favor of freedom and democracy in one of the most dramatic Iron Curtain revolutions of the Cold War, Hungarian relations with Russia today are arguably better than Hungary’s relations with leading EU member-states. Orbán, who burst onto Hungary’s political scene a quarter-century ago as an anti-communist activist, signed a $14 billion lending deal with Russia in January in pursuit of greater nuclear energy.

If Orbán goes through with plans to eliminate liberal democracy in Hungary, which has been a member of the European Union for a decade, it would cause an immediate crisis for the incoming European Commission president Jean-Claude Juncker.  Continue reading Orbán designs to transform Hungary into ‘illiberal’ state →

United Kingdom

What to make of Cameron’s night of the long knives

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queenhague

It wasn’t a surprise that British prime minister David Cameron sacked Kenneth Clarke, the one-time self-proclaimed ‘big beast’ of the Conservative Party from government. United Kingdom Flag Icon

At age 74, the pro-Europe former chancellor, who began his ministerial career in Edward Heath’s government of the early 1970s, had already been demoted once from justice secretary, his progressive ideas for penal reform and lighter sentencing guidelines  thwarted by the Tory right two years ago.

But it was something of a surprise that Cameron sacked so many other high-profile members of his cabinet last night.

Foreign secretary William Hague (pictured above with Queen Elizabeth II), one of the most high-profile Tories inside or outside government will now become the Commons leader. Hague, once a strident eurosceptic, was elected leader of the Conservative Party in the aftermath of Tony Blair’s massive victory in 1997. He stepped down in 2001 after his failed campaign to return the Tories to power. Though just 53 years old, Hague also announced he would also leave office at the 2015 elections, cutting short what’s been a solid career, if not one that might have elevated Hague to the premiership under different conditions.

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His replacement is defence secretary Philip Hammond, another Conservative firebrand, who has ably worked with chancellor George Osborne to reign in spending while the United Kingdom has reduced its role in the US-led occupation in Afghanistan. Hammond, who served as Osborne’s deputy in opposition, comes from the right wing of the party, however, having opposed Cameron’s push to legalize same-sex marriage last year. He’s not known as a particularly charismatic figure, and he’ll have a hard time shaking the notion that he’s No. 11’s man at the foreign office. 

Having argued that the United Kingdom should leave the European Union without significant, additional British carve-outs, Hammond will now be tasked with salvaging the UK-EU relationship.

But the knives went longer and deeper still — David Willetts, the minister for universities and science, nicknamed ‘Two Brains’ and deemed one of the cabinet’s most thoughtful members; David Gove, the combatively conservative and stridently eurosceptic education minister; Dominic Grieve, the attorney general; Owen Patterson, the environmental secretary.

The semi-official word is that Cameron’s reshuffle represents an effort to put his cabinet and his government on footing to wage next May’s general elections, with a particular focus on elevating the number of women and younger Tories to higher positions.

To borrow a phrase from former US president Bill Clinton, a ‘cabinet that looks like Britain.’

Continue reading What to make of Cameron’s night of the long knives →

European Union

European Council proposes Juncker as Commission president

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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 →

Finland

Katainen hopes to trade Finland’s premiership for EU presidency

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Just three years after taking power as Finland’s prime minister, Jykri Katainen is set to step down both as leader of Finland’s center-right Kansallinen Kokoomus (National Coalition Party) and as prime minister later this month, following the Saturday leadership election of Alexander Stubb as the party’s new leader. finland flag

Though Katainen (pictured above) is just 42 years old, he’s been at the helm of the National Coalition Party for a decade. Katainen stunned Finland in April when he announced he was resigning, with an eye toward pursuing a top job in the European Union. At the time, everyone assumed he was angling to become Finland’s next commissioner within the European Union, replacing Olli Rehn, the influential vice president of the Commission and, since 2010, the commissioner for economic and monetary affairs.

Rehn previously served from 2004 to 2010 as commissioner for enlargement, and he was recently elected to the European Parliament as a member of Finland’s liberal Suomen Keskusta (Centre Party).

But as the wrangling continues among Europe’s leaders over whether former Luxembourgish prime minister Jean-Claude Juncker should become the next president of the Commission, Katainen has tried to position himself as an attractive alternative.

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

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Juncker seems likely to command an absolute majority of the European Parliament, but there’s no sure bet that he’ll win the qualified majority within the European Council that he’ll need to win the Commission presidency. Juncker, led the pan-European campaign of the European People’s Party (EPP) in the May parliamentary elections, which won the largest number of seats in the 751-member legislature.

Enter Katainen, who’s guided a tenuous six-party (now five-party) coalition in Finland for the past three years, pushing through tough budget cuts, like so many other European governments over the last half-decade, in the face of economic recession. Before his National Coalition Party won the April 2011 national elections, Katainen previously served as finance minister and deputy prime minister, so he would bring to the job — or to any other top EU position — the experiences from governing through the eurozone sovereign debt crisis.  Continue reading Katainen hopes to trade Finland’s premiership for EU presidency →

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A detailed look at the European parliamentary election results (part 3)

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Nearly a week after the European elections, the reverberations are still shaking the entire continent, on at least two levels — the consequences of the historic level of eurosceptic parties elected across Europe and in terms of the growing battle between the European Parliament and the European Council over electing the next European Commission president. European_Union

In the first part of a Suffragio series examining the results of the May 25 European parliamentary elections, I focused on the five most populous countries in the European Union: the United Kingdom and France, where eurosceptic parties won the greatest share of the vote; Germany, where chancellor Angela Merkel won another strong victory; Italy, where prime minister Matteo Renzi won a near-landslide mandate just three months into his premiership; and Spain, where both traditional parties lost support to a growing constellation of anti-austerity movements — so much so that Alfredo Pérez Rubalcaba, the leader of the Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party), Spain’s traditional center-left party, resigned. 

In the second part, I examined the results in nine more countries — Poland, Romania, The Netherlands, Belgium, Greece, the Czech Republic, Portugal, Hungary and Sweden.

In the third and final part, I examine the results in the remaining 14 countries of the European Union. Continue reading A detailed look at the European parliamentary election results (part 3) →

European Union

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

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Three days after the European elections, the reverberations are still shaking the entire continent, with leaders at the national and European level firing the first shots in what promises to be an epic battle over European integration — and that will determine who really calls the shots in the European Union.European_Union

Last night, at an informal meeting of the European Council, the leaders of all 28 member-states of the European Union met to discuss how to approach the election of the next president of the European Commission, the powerful regulatory and executive arm of the European Union. The term of current president José Manuel Barroso, who has served in the role since 2004, will end within six months.

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They poured cold water on the notion that they would automatically propose former Luxembourg prime minister Jean-Claude Juncker as Commission president. Since Sunday, Juncker has stridently made his case that as the Commission presidential candidate (the ‘Spitzenkandiat‘) of the European People’s Party (EPP), which won the greatest number of seats in Sunday’s EU-wide elections, he should have the first right to attempt to assemble a parliamentary majority. That’s a position that, ironically, even the center-left Party of European Socialists (PES), the second-largest bloc in the European Parliament has endorsed:

Commenting on the leaders’ decision, outgoing Socialist group leader Hannes Swoboda tweeted that it’s “absurd that Juncker has our backing to start negotiations but is blocked in the Council by his own EPP family!”

It’s already starting to appear that, behind the scenes, the EPP, which won around 214 seats, and the PES, which won around 191 seats, are coming closer to forming a ‘grand coalition’ to back Juncker’s candidacy in a bid to assert the precedent that the Parliament should be the institution to determine the Commission presidency, not the Council. Both Juncker and the PES Spitzenkandidat, German social democrat Martin Schulz, have argued repeatedly that the Parliament should reject any Commission president that wasn’t among the original Spitzenkandidaten.

But it’s not so simple. The Commission president must win not only a parliamentary majority. He or she must also win a qualified majority among the heads of government and state that comprise the  Council, and enthusiasm among those leaders seems to be flagging for Juncker.

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

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The key player, German chancellor Angela Merkel (pictured above), seemed testy in two press conferences since the election when asked about the looming showdown. As the leader of one of the top parties in the EPP, she officially supports Juncker, but her comments should hardly give Juncker comfort:

She also thanked Juncker for the “good campaign” he ran for the European People’s Party, but seemed slightly irritated by the avalanche of questions as to whether she backs Juncker to become the next EU commission president.

“I don’t decide who gets the post. Juncker is our candidate, the EPP candidate, and we will put his name forward in the discussions. It’s always been said that it’s up to the strongest group to put forward the candidate, but just being the strongest group is not enough, a majority is required,” she said.