Tag Archives: social liberals

Vestager’s profile hangs over Danish election

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

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

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