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Denmark

Center-right looks to minority government after Danish election

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thulesen dahl

In an election race that finished as closely as polls predicted, the broad center-right ‘blue’ bloc won 90 seats in Denmark’s Folketing, while the broad center-left ‘red’ bloc of prime minister Helle Thorning-Schmidt won just 89.denmark flag

Though that’s a stupendous effort for Thorning-Schmidt and, especially, her Socialdemokraterne (Social Democrats), which actually gained seats and finished with the highest share of Denmark’s many political parties. Since winning the 2011 election, polls consistent showed Thorning-Schmidt’s coalition trailing by double digits, so the election result represents something of a comeback for the Danish left in general and for Thorning-Schmidt in particular.

folketing

Her coalition partners didn’t manage as well, though, so Thorning-Schmidt will not serve a second term as prime minister and, despite her success, she stepped down as the Social Democratic party leader after the narrow loss.

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

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The center-right’s victory means that former prime minister Lars Løkke Rasmussen, the leader of Denmark’s chief center-right party, Venestre, will once again return to power as head of a minority government, according to reports on Sunday. But Thursday’s vote is still something of a Pyrrhic victory for him, because his party finished with 19.5% of the vote, about 7% less than the Social Democrats and, more significantly, about 1.5% less than the anti-immigration, eurosceptic  Dansk Folkeparti (Danish People’s Party).

While the DF’s leader Kristian Thulesen Dahl (pictured above) didn’t demand the premiership, he will now be the chief driver of Danish government. Rasmussen is an amiable figure, but he’s been damaged by an expenses scandal and his party is now returning to power, despite the fact that it lost more seats (13) than any other party in the Folketing. Though the Danish People’s Party will conceivably his government from outside any formal coalition, there will be no doubt that Thulesen Dahl’s agenda — a populist approach to pensions and welfare spending, rolling back immigration (especially Muslim immigration), and chipping away at the free borders of the European Union’s Schengen zone (the party wants Denmark to leave the Schengen zone altogether) — will figure high on Rasmussen’s priority list. It also means that the Danish government will strongly back British prime minister David Cameron’s push for EU reform, in advance of a 2017 referendum on British membership in the European Union.

More thematically, the success of the Danish People’s Party is part of a broader story about the rise of the alternative right across Europe, especially throughout Scandinavia in recent years:

  • Norway’s anti-tax Framskrittspartiet (Progress Party) had a breakthrough performance in the 2009 election, winning 22.9% of the vote and becoming Norway’s second-largest party. In the September 2013 elections, it still won 16.6% of the vote, and its leader, Siv Jensen, serves as finance minister in Erna Solberg’s conservative minority government.
  • Last September, Sweden’s far-right Sverigedemokraterna (Sweden Democrats) won 12.9% of the vote to become the third-largest party in the country. Just one month into the premiership of center-left prime minister Stefan Löfven, the Sweden Democrats caused a political crisis that brought the country to the brink of a fresh snap election.
  • The similarly far-right Perussuomalaiset (PS, Finns Party) finished in third place in Finland’s elections with 17.6% of the vote in March 2015, and its leader, Timo Soini, a skeptic about future Greek bailouts, is now Finland’s foreign secretary.

It’s clear that the message of parties like the DF resounds with a significant portion of the northern European electorate, including in the United Kingdom and France, and immigration — from both inside the European Union and from Muslim emigrants from beyond — has a growing resonance. Even Thorning-Schmidt’s Social Democrats felt like they needed to take a harder line on the issue, with advertisements proclaiming that Danish immigrants should be working.

It’s not clear yet which parties Rasmussen will seek to form his minority government, but Thulesen Dahl’s tone seems to indicate that it won’t include the Danish People’s Party. But Rasmussen’s Liberals have just 34 seats — with support from the Liberal Alliance (13 seats), the Konservative Folkeparti (Conservative People’s Party (six seats), it gives Rasmussen just 53 seats.

Denmark, European Union

Vestager’s profile hangs over Danish election

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vestager

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 →

Denmark

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

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HTS

Not so long ago, British prime minister David Cameron suggested that his Danish counterpart, Helle Thorning-Schmidt, would make a good alternative candidate for the presidency of the European Commission.denmark flag

Thorning-Schmidt (pictured above) demurred the speculation. Ultimately, European leaders embraced former Luxembourg prime minister Jean-Claude Juncker and instead of seeking a safe job in Brussels, Thorning-Schmidt became increasingly convinced that she could lead her center-left government to reelection in a vote originally expected in September.

A Rorschach test for EU economic policy?

Thorning-Schmidt called snap elections for June 18, hoping to take advantage of a growing sense of momentum. Indeed, she may have taken a different sort of comfort from Cameron, who last month won an even stronger mandate for a second term in his own general election. After a period of GDP contraction and fiscal tightening, Thorning-Schmidt is betting that nascent economy recovery and the promise of greater welfare spending in the years ahead will be enough to replicate Cameron’s feat in Denmark.

If she succeeds, both sides on the European debate over economic policy will try to claim victory. For the European center-right, a Thorning-Schmidt victory would provide more evidence that an electorate is willing to reward a government’s hard grind to demonstrate fiscal stability. For the European center-left, it would show the way forward for social democrats struggling to salvage, reform and reinvent the welfare state in an age of austerity.

Furthermore, as the second-most populous Nordic country, Denmark (with 5.7 million people) is a weathervane of all the recent political, cultural and economic trends across northern Europe — and where the region may be headed.

How Helle turned a near-certain defeat into a dead heat

Thorning-Schmidt is the leader of the Socialdemokraterne (Social Democrats), the largest party on the Danish left, and she leads an informal ‘red’ coalition of parties that may be willing to join forces for a broad leftist government after the election. Not surprisingly, she won sympathy from voters in the wake of a radical Islamic attack on a Copenhagen cafe and synagogue in February. Moreover, she is hoping that forecasts of 1.5% or greater GDP growth will overshadow the GDP contraction and fiscal contraction that marked the first half of her government. Continue reading How Helle got her groove back in Denmark’s snap election →

Denmark

How Goldman Sachs nearly collapsed Denmark’s government last week

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thorning

A crisis over whether to approve the sale of part of Denmark’s state energy company to Goldman Sachs divides the country’s beleaguered minority government, leaving the first female Danish prime minister and her administration in jeopardy. denmark flag

It sounds like an episode of Borgen, the acclaimed television show about Danish political intrigue and the human costs of public office.*

But it was real-life Danish politics last week, when Helle Thorning-Schmidt pushed through a controversial sale of stock amounting to 18% of DONG (Danish Oil and Natural Gas) Energy, the national energy company, to Goldman Sachs, even though nearly seven out of 10 Danish voters oppose the sale and worry that Goldman will hold too much power over management and other key decisions.

Thorning-Schmidt (pictured above) leads the Socialdemokraterne (Social Democrats), the largest center-left party in Denmark.  In the September 2011 parliamentary elections, the Social Democrats actually lost a seat.  The largest party today in the Danish parliament is Venstre (Liberals, literally the ‘Left’), Denmark’s primary center-right party.

Folketing

But the strength of other leftist parties in the 179-member Folketing, the Danish parliament, allowed Thorning-Schmidt to pull together a minority government with the coalition support of two additional parties.  The first is Det Radikale Venstre (Danish Social Liberal Party, literally the ‘Radical Left’), a centrist liberal party that gained eight seats in the 2011 election.  Its leader, Margrethe Vestager, currently serves as deputy prime minister and minister for economic and interior affairs.

The second is the Socialistisk Folkeparti (the Socialist People’s Party), a democratic socialist party that lost seven seats in 2011.  Accustomed to opposition, the party joined government only for the first time since 1959, and its leader Villy Søvndal became foreign minister.  But Søvndal stepped down in September 2012, due to criticism within the party about the 2011 losses and sniping that he was focusing more on government than on the party leadership.  and in the ensuing leadership contest in October 2012, Annette Vilhelmsen defeated Astrid Krag.  Though many party leaders supported Krag, Vilhelmsen’s victory represented a triumph for the party’s left wing, though the party never fully united behind Vilhelmsen’s leadership.  Vilhelmsen clashed often with her coalition partners over economic policy, and it was Vilhelmsen’s decision to pull the party out of Thorning-Schmidt’s coalition at the end of last week, declaring that it wouldn’t be a part of government ‘at all costs.’   Continue reading How Goldman Sachs nearly collapsed Denmark’s government last week →