Tag Archives: government

German Election: Pollwatch

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Today’s Handelsblatt reports that a poll carried out for N24 TV shows the CDU stabilising in the polls after last week’s Schröder Surge. The CDU was on 42%, up 1.5%, with the FDP on 6%, down 0.5%, putting the Festival of Sternness Coalition on 48.5%. The SPD sank back one percentage point to 33.5%, with the Greens unchanged on 7% and the Left on 8%, also unchanged – putting the two camps exactly level and the Ampelkoalition on 46.5%. (Regarding the “traffic light option”, it’s worth remembering that the Left and the CDU-CSU are not exactly the material of a stable opposition, and a minority government could theoretically survive by playing them off against each other.)

Interestingly, an opportunity to test the validity of electoral spread betting has come up – the betting market Wahlstreet (ouch) has the SPD on 34% and the CDU just under 40%, with Greens on 8.5%, Left on 7.5% and FDP on 7.5%. This would put the Red-Red-Green buggered imagination option in the box seat with exactly 50%, the CDU/FDP on 47.5%…and the Ampelkoalition over the finishing line with an impressive 50%. (Amusingly, given that the margin of error for the polls is 2.5%, Wahlstreet quotes to the nearest two decimal places.) Over time, it seems that votes are drifting very gradually from the smaller to the bigger parties.

You might think this is of limited interest, seeing as Guido “He’s Not Dull – He’s a Statesman” Westerwelle told the nation in last night’s TV debate that the FDP would be in opposition if the CDU/FDP ticket didn’t make it (Link to the Austrian newspaper whose website uses frames). But, not so fast!
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Red light or green?

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You already know, because Alex has been doing such a good job of making sure you do, that the impending German elections will be as close-run as the related campaign has been shambolic. According to the polls, the Union and FDP will outpoll the currently governing SPD-Green coalition; but not by enough for a majority. What’s more, the Union has been slipping (slightly) of late whilst the SPD are (slightly) gaining. Black/Yellow (48%) are still doing better than Red/Green (42%), but not as well as Red/Green/Even Redder1 (49%).

What’s interesting about all this, though, is the number that’s not being loudly pointed at: Red/Green/Yellow, which is currently the same as Black/Yellow. This is the so-called Ampelkoalition (‘traffic-light coalition’, based on party colours). Down in the comments to one of Alex’s earlier posts there’s been some talk about this as an increasingly likely outcome of the vote, though one commenter begs to differ.

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Troubled Waters And No Bridge

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Global Voices has a story (Hat Tip Financial Times and Simon World) about how China dissident Shi Tao has more than a little cause to be angry with Yahoo. Reporters Sans Frontiers, on analysing the text of the verdict in Shi Tao’s case (he was sentenced to 10 years in April for “divulging state secrets abroad”) , found that details supplied by Yahoo Holdings (Hong King) Ltd helped identify and convict him.

As Global Voices indicates Yahoo “provided the Chinese investigating organs with detailed information that apparently enabled them to link Shi’s personal e-mail account (on the Chinese Yahoo! service at yahoo.com.cn) and the specific message containing information treated as a “state secret” to the IP address of his computer”.

Now this raises a number of interesting issues.
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Not sentimental, and no France

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Until a couple of days ago, I was very nearly incommunicado for two weeks. We took the kids to Italy on holiday, you see, and found ourselves in a place with no television, no internets, not even mobile-phone reception. The tiny shop at the site doesn’t even stock English-language (or any other non-Italian) newspapers, and my Italian is, if that is possible, even viler and more vestigial than my Spanish. I found this isolation very pleasant altogether, and in some ways regret having to come back into the connected world.

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Here We Go Again

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The Financial Times is running this story this morning:

“Britain is coming under pressure from the European Commission to say when it will honour its 25-year-old promise to go fully metric, converting miles to kilometres and pints to litres.G?nter Verheugen, EU enterprise commissioner, says he wants clarity on the issue, claiming he is facing pressure from British pro-metric campaigners to act.”

Isn’t this really the kind of silly non-issue the EU could safely live without? UK consumers and citizens have every right to purchase their beer in pints or measure their journeys in miles if they chose so to do. Trying to force them to change is not non-intrusive government. And the argument about pressure from the ‘pro-metric’ lobby is a canard: if they want to lobby, they should lobby inside the UK, and try and convince public opinion there, while Verheugen should have the strength of character to tell them to get lost in the meantime.

Incidentally, on this issue I have no strong feelings personally, since frankly my dear I couldn’t give a damn.

Update, here’s another example:

“The decision by the Netherlands to lock up 5.5m free-range birds as a precaution against the spread of avian flu may have breached European Union rules, it was claimed on Friday. The European Commission said its lawyers were studying whether the unilateral action was legal, since animal health is an EU matter and the Dutch action was taken before EU animal health experts had co-ordinated their response. Commission lawyers are also considering how long Dutch free-range egg producers should be allowed to market their products as such, following the decision to confine all poultry to sheds last week.”

It seems little has been learned from the referendum ‘sebacks’. What we are in danger of creating is an intransigent’s paradise. If the Dutch government can’t take the measures it sees fit to protect its citizens because it’s against the rules then it’s time to ammend the rules in question and not castigate the government of the Netherlands. This is the case whether or not it could be claimed that the government have ‘overreacted’.

A Certain Irony

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In a post back in May about the bloody repression in Uzbekistan I noted that Crooked Timber’s John Quiggin was suggesting that US troops should be withdrawn immediately (I didn’t agree if you read the post). Well he seems to have got his way, and the reasoning behind the Uzbekistan parliament decision is of course interesting. The parliament has backed a government order which gives the United States six months to vacate the Karshi-Khanabad airbase. The suggestion is that this order is not entirely unconnected with the U.S. decision to join international demands for an independent investigation into May’s bloody crackdown.

While I’m up posting on Uzbekistan,
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A curious trend in the Balkans

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2000-2004: Under the rule of the Social Democrat Party (PSD) and Prime Minister Adrian Nastase, Romania enjoys four consecutive years of rapid economic growth. Romania’s GDP increases by an average of nearly 6% per year; for the first time since the end of Communism, the country has four years without a recession. Meanwhile, Romania joins NATO and is accepted for EU accession in 2007.

December 2004: voters reject Nastase and PSD, voting in the opposition in a weak coalition government.

2001-2005: Under the rule of the National Movement Simeon II (NDST) and Prime Minister Simeon Saxecoburgotski, Bulgaria enjoys four consecutive years of rapid economic growth. Bulgaria’s GDP increases by an average of around 5% per year; for the first time since the end of Communism, the country has four years without a recession. Meanwhile, Bulgaria joins NATO and is accepted for EU accession in 2007.

June 2005: Voters reject Saxecoburgotski and NDST, voting in the opposition, which now appears likely to form a weak coalition government.

2001-2005: Under the rule of the Socialist Party and Prime Minister Fatos Nano, Albania enjoys four consecutive years of rapid economic growth. Albania’s GDP increases by an average of about 6% per year; for the first time since the end of Communism, the country has four years without a recession. Meanwhile, Albania is accepted into the Partnership for Peace and moves from being an impoverished semi-pariah to a serious candidate for EU accession sometime in the next decade.

July 2005: Voters reject Nano and the Socialists, returning to former President Sali Berisha, out of office since 1997. Berisha will form a coalition government with several minor parties.

What’s going on here?
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Battle Royal In Portugal

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Obviously, convincing people of hari-kiri type economic policies simply to maintain the SGP (I say ‘simply’, but I imagine you understand what I mean) was never going to be easy for a growth strapped Portugal. Well, the finance minister has just resigned citing ?personal and family reasons? as well as fatigue.

“A new Portuguese finance minister was hurriedly sworn in yesterday as the Socialist government sought to reassure financial markets that the surprise resignation of his predecessor would not weaken efforts to cut the biggest budget deficit in the European Union.

Lu?s Campos e Cunha, the architect of a programme of tough measures to cut public spending, quit unexpectedly late Wednesday only four months after the centre-left government took office…..

But his decision to quit came amid a clash within the government and the Socialist Party over a plan to invest billion of euros in a new Lisbon airport, high-speed rail services and other infrastructures.

Albania again

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Former Prime Minister Sali Berisha won a surprise upset victory in the Albanian elections earlier this month.

This is not particularly welcome news for anyone outside of Albania. Berisha, who was Albania’s chief executive from 1990 to 1997, is remembered as a corrupt and erratic authoritarian who ran a government of cronies, best remembered for the “Pyramid” crisis of 1997 that left Albania in anarchy with hundreds dead.

Inside Albania, however, Berisha has been cultivating an image as a repentant reformer. He’s been aided in this by widespread dissatisfaction with the Fatos Nano government, which was seen as extravagantly corrupt and increasingly isolated from the concerns of ordinary Albanians.
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Something Worries Me About Peter Bofinger

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Really I realise I have been remiss in another important sense. I have long assumed that in fact the decision to reduce deficits was taken due to the coming fiscal pressure from ageing. This certainly was the background to the discussion. However now I look at the details of the SPG this area is not mentioned (as far as I can see) and the other – the free rider and associated – is the principal consideration.

So those who criticize the bureaucratic and infexible nature of the ECB are in the right to this extent. Of course the underlying demographics *should* be part of the pact, but that is another story.

I find myself in a tricky situation, since I am deeply sceptical that the euro can work, and now after the French vote even more so, but since it has been set in motion, the best thing is obviously to try and make it work (even while doubting). So I am thinking about all this. Obviously I should try and write a longer post making this clearer.

The SGP was adopted at the Amsterdam Council 1997. A history of the implementation of the pact, and a summary of the debate over the new pact can be found here. The Stability and Growth Pact was designed as a framework to prevent inflationary processes at the national level. For this purpose it obliges national governments to follow the simple rule of a balanced budget or a slight surplus.

Now if we go back to the origins of the pact, to the communication of the European Commission on 3 September 2004, you will find the following:

“As regards the debt criterion, the revised Stability and Growth Pact could clarify the basis for assessing the “satisfactory pace” of debt reduction provided for in Article 104(2)(b) of the Treaty. In defining this “satisfactory pace”, account should be taken of the need to bring debt levels back down to prudent levels before demographic ageing has an impact on economic and social developments in Member States. Member States’ initial debt levels and their potential growth levels should also be considered. Annual assessments could be made relative to this reference pace of reduction, taking into account country-specific growth conditions.”

Now curiously I have found nothing in Bofingers argument which seems even to vaguely recognise this background.

A good starting point for this topic would be the conference “Economic and Budgetary Implications of Global Ageing held by the Commission in March 2003.

The European Council in Stockholm of March 2001
agreed that ?the Council should regularly review the
long-term sustainability of public finances, including the
expected strains caused by the demographic changes
ahead. This should be done both under the guidelines
(BEPGs) and in the context of the stability and
convergence programmes.?

This document on the history of EU thinking on ageing and sustainability is incredible.
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