Instant speculation, instantly out of date

What will happen after the election? If there’s a Lib-Lab majority, which seems likely, though not certain, Nick Clegg, among others, have a few unpleasant decisions ahead of him.

One unusual factor is that any coalition agreement or pact has to be voted on through several levels of the party. Exactly what qualifies as an agreement is a bit vague, however.

If the Tories would agree to PR, Clegg would most likely support them. They almost certainly won’t though. They’re an uncompromising lot and FPTP has served them very well.

Clegg will probably let Cameron through without a good deal on PR. I don’t actually think it’s sensible. (CF) I think Clegg may be savvy about election campaigns, but not about these sort of things. He’s not bloody minded enough. Tories getting a shot has become what’s expected, what’s supposed to happen. From a not-losing the-three day news cycle perspective it would make sense, and because people sort of expect a Tory minority, because the immediate reaction to a Labour-liberal deal would be negative. Never underestimate the feeble mindedness of anyone who isn’t actively evil.

If Clegg makes a less attractive deal, he risks getting overruled, so I reckon he’ll tolerate Cameron without any preconditions, to bypass the grassroots.

If there’s a Lib-Lab pact or actual coalition, the Tories will almost certainly get much high poll numbers fairly soon – the Lib Dems won’t be in opposition anymore, and the economy will still be crap. So if the Lib Dems lets them through with only a vague promise of PR, they’ll soon be in the position to say: “we dare you to vote us down”. And there’s a good chance the grass roots will nix it. The Lib Dems will do very badly in the next election then, whether it’s early or in 2015.

But will Labour offer a good deal? Even if a majority of them wants to, will the leadership be unified enough to offer something some figures are strongly against, with no one in charge and election campaigns starting (for both leader and deputy)?

If both larger parties are uncompromising, Clegg will have no less than six, maybe seven shit sandwiches to choose from. A pact with Labour, or with the Tories. Letting either of them in without ANY deal, to bypass the grassroots. Immediate early elections, which doesn’t only risk a Tory majority, but global economic meltdown (or so people will say). Or outside chance, a national unity gov’t. I think he may then choose what may be the shittiest shit sandwich.

Having said all that, I think the combined odds of a Lib-Lab pact or toleration, either now or somewhat later after some unpleasant twists and turns, is slightly higher than a long term Tory gov’t.
Of course, in thinking about the future we should also consider the risk of the economy imploding because of political uncertainty, even if we get the in my opinion lesser evil in the cabinet.

Update: If Clegg lets Cameron through and then the next Labour leader and Clegg wants to do a deal, could they avoid a new election? My understanding is now that Clegg and the next Labour leader could avoid a new election. This would make letting Cameron in more likely and a bit less irrational. If Cameron goes down to no confidence and doesn’t see it coming soon enough to call a new election, the leader of the opposition gets a shot at forming a government.

Thanks to Ajay, Alex and Keir for their input.

In the polling booth

So there I was, all ready to convert my well formed pro-Liberal Democrat voting intention into a mark on the ballot paper, when this strange mist descended, and all I could think was: is there any way – any way at all – to stop this place going Tory? So I went for the Labour guy instead. Good luck, Martin.

As it happens, there’s also some local elections on around here and the single Green candidate picked up my vote, along with two randomly selected Lib Dems.

Polling continues until ten tonight. It was busy down there. Anyone else had any booth moments so far?

Election sidelight

The gutter press (well, the Daily Telegraph: so the gutter in question is presumably attached firmly to the eaves of a rather nice vicarage somewhere in Buckinghamshire) has made much of the fact that Gordon Brown is an “unelected prime minister” – i.e. he hasn’t yet fought and won a general election as party leader. The fact that he’s attempting to do so now should have answered that point – it hasn’t – but it’s interesting to note that this isn’t exactly a rarity in British politics. Continue reading

controlled demolition

Niall Ferguson, not surprisingly, argues in the Speccie, also not surprisingly, that the Tories should deliberately crash the economy for ideological reasons – 1979-80 style – and then call in the IMF.

This idea has apparently already “been doing the rounds in Tory circles.” But I guess that’s not surprising either. 

It kind of fits in with Cameron’s plan to storm the gates if he doesn’t get a majority. The general feel of the Tory campaign over the last few days has been of people nerving themselves up to do something drastic. 

On a local note, there’s a car cruising the streets of Crumpsall right now – quite a snazzy late model VW Passat – telling the broad masses to “Vote Respect – for cleaner streets and brighter parks”. We seem to have come a long way since Gorgeous George went to America to beard the Senators in their lair.

Hungarian passports; or, dumbest Stratfor article ever

This sort of thing is why I have trouble taking Stratfor seriously.

Short version: the new, center-right Hungarian government is reviving the plan to offer Hungarian citizenship and passports to ethnic Hungarians living outside Hungary. (There are a couple of million of them. Most live in Hungary’s neighbors Romania, Slovakia and Serbia, with smaller numbers in Croatia and Ukraine.) Stratfor sees this as “an insurance policy — a way of broadening [Hungary’s] power and securing itself should its protectors, the European Union and NATO, weaken.”

What the hell? Continue reading

Building Hedges Around Greece?

While Macro Man opted to present a po(p)etic styling on the ongoing hardship in Greece (or was that Grease?) today came with a couple of notable developments in the story and would seem to be honourable and real efforts to calm down markets. Obviously, it is difficult to tell whether this is a true attempt to save Greece from what increasingly looks inevitable or whether it is an attempt to make sure the debacle does not turn out to be a Eurzone rout. In any case, action it seems is entering the stage on the cost of fiddling. Continue reading

Spain’s Unemployment Problem

Well, according to a popular urban legend, Spain’s unemployment rate – which is the second highest in the EU after Latvia – is currently running at something just a touch over 20%. Or is it? The unemployment problem I wish to address here is not the one of how to get to grips with actually putting all these people back to work, rather it is that of untangling what exactly Spain’s real EU harmonised unemplyment might be, since, to say the least of it, some strange things have been happening in recent months. Continue reading

Only drinks water from the source of the Cherwell

I’m still busy not following the election, but I couldn’t help noticing that the Daily Telegraph agrees with my analysis of how things work in British public life. The difference is that having a leadership caste is AOK in their book, hence their careful observance of all the appropriate hagiographic tropes. Read it here: ‘David Cameron: born to be prime minister’.

Update: Gordon unblocked. If only you’d started like this.

Orange sunset?

So, President Yanukovych. I don’t always agree with the folks at Foreign Policy, but I think they nail this one:

Ukrainians were absolutely correct to stand up and defend their democratic rights back in 2004. Yanukovych and his party were guilty of egregious election fraud. Moscow supported Yanukovych so openly, and so brutishly, that some Ukrainians presumably ended up voting for his opponent out of sheer spite.

But let’s face it. The record since then hasn’t exactly been an exercise in the glories of Ukrainian democracy. No sooner had Yushchenko and Tymoshenko achieved power (as president and prime minister, respectively) than they began to indulge in a feud that essentially paralyzed Ukrainian politics for the rest of Yushchenko’s term. The result was a long list of non-accomplishments. Kiev-based commentator Mykola Riabchuk, an ex-supporter, ticks off the list: “He failed to bring Ukraine closer to Europe,” thus frustrating one of the central demands of the Orange demonstrators. “He failed to separate business and politics” — another key disappointment for a country where a tiny group of business tycoons wields power constrained only by their competition among themselves. No sooner was the new president elected, Riabchuk notes, than he appointed several of his oligarch supporters to ministerial positions.

Small wonder, then, that Yushchenko didn’t make much headway against Ukraine’s fantastically stubborn culture of corruption. Last year global corruption watchdog Transparency International gave Ukraine a ranking of 146 on the group’s notorious “Corruption Perceptions Index.” To offer some context, that was the same rating achieved by Zimbabwe, Sierra Leone, East Timor — and, oh yes, Russia. In 2004, when Yushchenko scored his great victory, Ukraine’s ranking was 122. “I don’t think that’s changed, and no one’s tried to change it,” says David Marples, a Ukraine-watching history professor at the University of Alberta. “In Ukraine the corruption goes right down to the village level.”

Yushchenko turned out to be a pretty big disappointment all around: stubborn, clumsy, tone-deaf, and obsessed with internal rivalries. He got eliminated in the first round this time. The runoff election was between Yanukovych — a former petty criminal who seems unable to string three coherent sentences together — and the equally horrible Julia Tymoshenko. Under the circumstances, it’s hard to blame the Ukrainians for choosing Yanukovych. (N.B., while the 2004 elections were marred by gross fraud, this year’s elections seem to have been pretty clean.)

So far, Yanukovych’s young administration is interesting for two things: what he’s done, and what he hasn’t.

What he’s done: Yanukovych has swerved Ukraine sharply closer to Russia. Continue reading

What A Difference A Day Made!

According to a once famous statement by the British Prime Minister Harold Wilson, a week is often a long time in politics. But when it comes to financial market crises we seem to follow a pattern more reminiscent of a line from the Dinah Washington version of an old María Méndez Grever song: “What a difference a day made”. The day in this case was last Wednesday, at least for those of us here in Spain, since it was on Wednesday that the ratings agency Standard & Poor’s downgraded Spanish Sovereign debt to AA from AA+. As a result the cost of insuring such debt using credit default swaps (CDS) surged at one point to a record 211 basis points according to CMA DataVision prices. Contracts on Greece and Portugal also rose sharply, with Greece climbing 42 basis points to hit 865.5, while Portugal jumped 20 to 406. Continue reading