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Center-right looks to minority government after Danish election

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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.

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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.

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

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

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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

Wynne lifts Ontario Liberals to majority government, 4th term

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Heading into Thursday’s provincial elections, polls showed that both the center-left Liberal Party of Ontario and the center-right Progressive Conservative Party of Ontario (PC) both had a chance of winning at least a minority government.Canada Flag Iconontario

Late-breaking polls on Tuesday and Wednesday, however, showed the Liberal vote creeping up, matched by a decline in support for the progressive alternative, the New Democratic Party of Ontario (NDP).

As it turns out, those late polls were spot on, and Ontario’s new premier Kathleen Wynne, who inherited a minority government from her predecessor Dalton McGuinty just 16 months ago, reinvigorated Ontario’s Liberals and won a majority government in her first campaign leading the party.

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RELATED: Meet Kathleen Wynne, Ontario’s premier and the 180-degree opposite of Rob Ford

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The Ontario Liberals won 59 seats in the 107-member Legislative Assembly with nearly 39% of the vote, while the Ontario PC won just 27 seats with just over 31% of the vote, a nearly disastrous result that found the Tories losing ground in what was shaping up as a PC landslide a year ago:

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It’s an unexpected trajectory for a party to go from two terms of majority government to one term of minority government and, then, back to a majority government. Part of the reason is that Ontario’s voters simply never warmed to PC leader Tim Hudak.   Continue reading Wynne lifts Ontario Liberals to majority government, 4th term

Ontario election too close to call with 48 hours left to go

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Just two months after Québec’s extraordinary election, which devastated the sovereigntist Parti québécois (PQ) and replaced the minority government of Pauline Marois with a federalist majority government under Philippe Couillard, Ontario voters will choose their own provincial government on Thursday in what has become a tight two-way race.Canada Flag Iconontario

Politics in Anglophone-majority Ontario, however, looks nothing like politics in Francophone-majority Québec.

As in most provinces, Ontario’s political parties have only informal ties to federal political parties. But Ontario’s political framework  largely maps to the federal political scene. Accordingly, the center-left Liberal Party of Ontario is locked in a too-close-to-call fight with the center-right Progressive Conservative Party of Ontario (PC), with the progressive New Democratic Party of Ontario (NDP) trailing behind in third place.

All three parties have led provincial government the past 25 years. The Liberals are hoping to win their fourth consecutive election, after Dalton McGuinty won majority governments in 2003 and 2007 and a minority government in 2011. Under the leadership of popular former premier Mike Harris, the Progressive Conservatives won elections in 1995 and 1999. Bob Rae, formerly the interim leader of the Liberal Party of Canada, led an NDP government between 1990 and 1995.

ThreeHundredEight‘s current projection, a model based on recent polling data, gives the Liberals an edge over the Ontario PCs of just 37.3% to 36.5%, well within the margin of error. The Ontario NDP is wining 19.8% (though individual polls show that the Ontario NDP could win anywhere from 18% to 27% of the vote) and the Green Party of Ontario is winning 5.2%.

Voters elect all 107 members of Ontario’s unicameral Legislative Assembly in single-member ridings on a first-past-the-post basis. That, according to ThreeHundredEight, could result in anything from a Liberal majority government to, more likely, a hung parliament with either a Liberal or PC minority government.  Continue reading Ontario election too close to call with 48 hours left to go

How Goldman Sachs nearly collapsed Denmark’s government last week

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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.

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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

Who is Sebastian Kurz? Meet Austria’s new 27-year-old foreign minister.

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While most of Europe was watching the birth of Germany’s latest grand coalition government last week, Austria’s grand coalition also finalized its government platform.austria flag

Austria, which has an even stronger tradition of cozy coalition politics between the center-left and the center right, will continue to a coalition that’s comprised of its main center-left party, the Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) and its main center-right party, the Österreichische Volkspartei (ÖVP, Austrian People’s Party).

There was very little unexpected news about the coalition deal, which will continue the broadly centrist course of center-left chancellor Werner Faymann’s government.

But the decision to elevate the hunky 27-year-old Sebastian Kurz as Austria’s new foreign minister was something of a shock.  Michael Spindelegger, the ÖVP leader and deputy chancellor, who previously served as foreign minister between 2008 and 2013, will become the government’s new finance minister.

The decision leaves Kurz (pictured above) as one of the world’s youngest political leaders in such a high policymaking role.

So who is this whiz kid?  Kurz became involved in politics at age 10, and by 2009, he was the leader of the youth wing of the Austrian People’s Party.  In 2010, he was elected to the city council of his native Vienna, running under the slogan, ‘Schwarz macht geil‘ (‘Black is cool,’ referring to the color most associated with the People’s Party) in a campaign Hummer that quickly gained the nickname as the ‘Geilomobil‘ (which translates roughly to ‘Horny-mobile’), befitting Kurz’s growing reputation as somewhat of a party animal.  Before you judge him too harshly, however, remember that it was part of a wider push to make the ÖVP more attractive to young voters. And just four months ago, two competing leaders of the Austrian far right both posed shirtless in public.

But by 2011 he was already serving as state secretary for integration, where he impressed skeptics by working to ease the path for the growing number of immigrants to Austria, including through the institution of an extra year of pre-school for immigrant children to learn German.  He helped spearhead a new immigration law in May of this year that clears a path to citizenship for some immigrants within six years.

It was a controversial move on Spindelegger’s part, but it paid off, and Kurz was elected to the Nationalrat (National Council), the chief house of the Austrian parliament, in the September 29 parliamentary elections with a higher number of votes than any other candidate. 

His approach contrasts with that of the more xenophobic approach to immigration of Austria’s far right.  In  September, the Social Democrats won 27.1% and the Austrian People’s Party won 23.8%, but the anti-immigrant, anti-EU Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) won 21.4%, a strong third-place finish.  But a Dec. 12 Hajek poll showed that if the elections were held over today, the Freedom Party would emerge as the leading party with 26%, followed by the Social Democrats with 23% and the Austrian People’s Party at 20%.  A new free-market libertarian partyDas Neue Österreich (NEOS, The New Austria), which entered the National Council for the first time in September’s elections, would win 11%.

The Freedom Party’s relatively young and charismatic leader, Heinz-Christian Strache, wasted no time in criticizing Kurz for his inexperience:

“When Mr Kurz becomes foreign minister without any diplomatic experience, you have to be amazed. This is the continuation of Austria’s farewell to foreign policy,” right-wing leader Heinz Christian Strache told parliament on Tuesday.

Kurz… took the blows.  “It’s true, of course. Due to my age I have limited experience and of course hardly any diplomatic experience. But what I bring is lots of diligence, energy and the desire to contribute something,” he told Reuters.

But Kurz emphasized the international nature of his previous role with respect to integration, and he argued that his relative youth and high media profile would allow him to make an immediate impact.  Though Austria, with just 8.5 million people, has a less dominant voice on European matters than Germany, it plays a key role in the Balkans, where Serbia and other former Yugoslav countries are hoping to begin accession talks to the European Union early next year. (If your German skills are up for it, here’s an interview with Kurz in Der Standard earlier this week).

Kurz’s appointment also means that he will likely take a key role in the upcoming European Parliament elections by convincing Austrian voters not to turn to euroskeptic parties like the Freedom Party or Team Stronach, the conservative movement of Austro-Canadian businessman Frank Stronach.  Spindelegger was criticized during his tenure at the ministry for being a ‘half-time foreign minister’ in light of his duties as the ÖVP leader and deputy chancellor. Continue reading Who is Sebastian Kurz? Meet Austria’s new 27-year-old foreign minister.

Austrian election results: grand coalition reelected, Freedom Party solidifies gains on far right

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With nearly all of the votes counted in Austria’s election today, it appears that the current grand coalition led by center-left chancellor Werner Faymann will continue — for up to another five years.austria flag

Just one week after Germans massively supported chancellor Angela Merkel and her center-right Christian Democrats for steering Germany largely unscathed through the worst of the economic crisis, Austrians appeared ready to do the same for Faymann, though his Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) did not score the kind of overwhelming victory that Merkel’s Christian Democrats won last week — the SPÖ lost over 2% of the vote since the September 2008 election.

But their coalition partners, the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), also lost 2.2% of the vote from 2008.  Together, however, the two parties won enough seats (99) to continue to hold an absolute majority in Austria’s 183-member Nationalrat (National Council), the chief house of the Austrian parliament.

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But the far-right, anti-EU, anti-immigrant Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) won just four seats less than the People’s Party and it won over 21% of the vote.  That’s largely because voters on the far right abandoned the Bündnis Zukunft Österreich (BZÖ, Alliance for the Future of Austria), the splinter group that former Freedom Party leader Jörg Haider founded in 2005.

Believe it or not, today’s election was the first one without Haider in nearly two decades following his sensational death in October 2008, and the BZÖ lost over 7% from the 2008 election — and missed the 4% electoral hurdle required to hold seats in Austria’s National Council.  Given Haider’s absence from the political scene, many BZÖ supporters turned back to the Freedom Party.  In any event, it’s certainly a huge victory for FPÖ leader Heinz-Christian Strache (pictured above), whose party gained more support than any of the parties that contested the 2008 election.  Strache is one of the big winners in today’s election, and that will amplify his voice as the chief opposition leader in Austria.

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Continue reading Austrian election results: grand coalition reelected, Freedom Party solidifies gains on far right