Category Archives: Political issues

The Plural of “Anecdote” Is Not “Data”, It’s “Blog”

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Overheard in the bar, Paris-Toulouse TGV near Bordeaux…

A French saloon bar bore, who has apparently just returned from a spell abroad, is in the process of berating “national decline” to the barman. Apparently these students are deluded, irresponsible fools, France is in the Middle Ages, and two of the escalators weren’t working at Montparnasse this morning! (Jesus, what would he have made of Oxford Circus tube?) Only la rupture can save us, etc, etc.

But which society had he been experiencing that made him consider France to be stuck in the Middle Ages and to be desperately in need of, ahem, “modernisation” and “reform”? Why, Sweden, of course. A few minutes later, I saw a huge full-page ad in my newspaper taken out by Alcatel to boast of how the takeover of Lucent would give them the world’s biggest laboratories and that they would be spending twice Alcatel’s €2.6bn annual R&D budget in the future.

I can’t imagine a British CEO getting away with that.

Returning to Britain, I see that Peugeot has decided to transfer production of 206s from the Ryton plant in Coventry to somewhere with less job security and lower wages…after all, that’s what we all need, no? Whoops. They are zapping 2,300 workers at Ryton to transfer the work to Mulhouse..

Why France MUST Reform – MUST, I Tell You!

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Since the withdrawal of the CPE and the resulting collateral damage to Dominique de Villepin, not to mention Nicolas Sarkozy’s unexpected appearance as a unity figure at the height of the crisis, it’s rapidly being promulgated as conventional wisdom that France “is ungovernable”/refuses to “reform”/cannot be “reformed”. There is only one problem with this discourse, very popular in anglophone leader columns and the like, which is that it’s nonsense.

It’s quite often been raised here on AFOE that the French economy isn’t actually in trouble. Growth, although not great, is ticking along, inflation is controlled, unemployment is higher than the UK but lower than Italy or Germany, and the demographics (as Edward Hugh will no doubt point out) look a lot better than many other countries. Certainly, there’s more youth unemployment than one might like, but almost all the figures for this are wildly misleading. The percentage rate of unemployment in the 15-24 years age group looks scary high, but is actually a very small percentage of that group–because most of them are in education or vocational training of some form and hence not part of the labour force. Unemployment as a percentage of the age group is rather lower than the national rate and not much different from that elsewhere in Europe. (Le Monde ran a useful little chart of this in a supplement yesterday that doesn’t seem to be on the web.) Much – indeed most – of the difference in employment growth between France and the UK in recent years has been accounted for by the UK government going on a hiring binge.

So why the crisis atmosphere? More, as ever, below the fold..
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Putin’s Price

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Without support from Russia, Belarus’ authoritarian leader, Alexander Lukashenko, would have a much more difficult time staying in power. A substantial share of recent economic growth in Belarus has come from the difference between the below-market prices it pays for oil and natural gas from Russia and the world-market prices it receives for refined products and for oil and gas transported to Western markets. But now the bill for Putin’s backing is starting to come due.

According to reports in the Russian newspaper Kommersant, Russia is demanding a share of the revenue that Belarus receives for the gasoline it exports; this gasoline is refined from Russian oil that is imported at subsidized rates. The Russian demand is estimated at roughly EUR 900 million, a not insignificant sum for a poor-ish country like Belarus. Furthermore, Gazprom, Russia’s state-owned natural gas monopoly, is tripling what it charges Belarus for gas beginning in 2007. Gazprom also wants control over the Belarusian company that transports gas through the country to Western Europe. Negotiations on these last two items are set to start in early May, but it’s hard to see what cards Belarus holds. Lukashenko will pay the price for Russian support.

Italian Elections, Now The Serious Part Starts

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At the time of writing Berlusconi is still filibustering, but it seems to be simply that, rather than any serious attempt to derail the outcome of the electoral process. Meantime the financial markets are adapting themselves to the new reality.

I too am gearing myself up for what looks like being a very bumpy ride ahead. I have dusted off some of the rust from an old weblog I used to maintain – Italian Economy Watch. Many of the posts I have been putting up are simply recycled versions of material which has appeared here at Afoe, but it does at least serve the useful purpose of keeping all the posts tidily in one place. Recent posts include The Future Of Italy’s Young, Addio, Dolce Vita, Or Twilight of the Idols?, Italy Had Zero GDP Growth In 2005, Les Jeux Sont Faits, and The Italian Government Has A New Crisis.

But talking of new crisises, I fear Italy has a pretty old one (puns intended), and the ratings agencies are only just starting to get their minds round the problem.
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Senate: 158-156 Prodi

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Corriere della Sera is now reporting that the Italian Senate is breaking 158-156 to the Left, with the lower house going 340-277. The controversial six seats for Italians abroad, introduced by neo-well actually quite-fascist minister (a former member of the Salo Republic’s army) Mirko Tremaglia, seem to have backfired badly on their inventor, with 4 out of 6 going to the Left (German link) and pushing them over the hump.

The Italian right was so keen on those seats that Forza Italia appeared on the overseas ballot as “Italians Abroad with Tremaglia”, which sounds to me at least worryingly like a support group for sufferers of some sort of embarrassing disease. Still, all’s well that ends well, which is probably not what the mafia boss of bosses Bernardo Provenzano is saying right now, having been busted after 40 years on the run. Not that I’m saying there was any connection..

It still might not end well, though, as Berlusconi is babbling about a government of technocrats (German), presumably as a way to stay in office and out of jail a while longer. That could happen either on the basis of a grand coalition (which the Communists are pledged to reject) or alternatively, by somehow dodging the election results.

Market Watch: The MIBTEL has given up some of yesterday’s gains, down 0.67% at 1430 local time..

The Market Speaks…and Jörg Packs

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Well, by 1630 CET today, the Milan stock market had made a very clear judgment on the outcome of the Italian elections – the MIBTEL index being up just under 1 per cent intraday, despite a pasting for Berlusconi’s own Mediaset..down 1.98 per cent at €9.68 a share. Berlusconi’s departure seems welcome indeed.

More exit poll results are spilling out all the time, showing the Left with a working majority in both houses. So far, the only weirdness has been the rather idiosyncratic kerfuffle in the town of Amelia (German link), where a protest led to the removal of crosses from all polling stations on the grounds of constitutionally guaranteed secularism, and predictable moaning from the ex/post/neo/whatever-fascists. A small outbreak of laicisme.

Oh yes, and this…sorry, more German linkage. Seems Jörg Haider, fun-lovin’ pseudofascist scandal monkey and governor of the Austrian province of Kärnten, is going to stand for election in 2009…in Italy, as a candidate for a party advocating Venetian independence. Not just Northern independence as per routine Liga Nord stupidity, but independence for the Most Serene Republic herself.

Strange really. I’ve always thought of Haider as a man out of place, a Mediterranean politician stuck on the wrong side of the Alps with the Germans. His demagoguery, rocambolesque coalition whoring and-to be brutally frank-corruption and barely concealed racism would have fitted beautifully into Silvio Berlusconi’s recent campaign, the municipal authorities of Marbella, or perhaps the intrigues of southern French Gaullism. Carinthia produced far more than its fair share of Nazis, as did many similarly debatable provinces on the edges of the German linguistic sphere, and in a sense his pumped-up nationalism fits the pattern.

Until you remember that he’s not actually from there at all (not far from Linz, actually), and in fact is putting on the overcompensated border nationalism to ingratiate himself with the overcompensated border nationalists. Which fits, too.

But it’s going to be fun to watch.

Italian Elections

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Well it’s not official yet, but the first exit poll has Berlusconi trailing:

An exit poll Monday showed conservative Italian Premier Silvio Berlusconi trailing center-left challenger Romano Prodi in parliamentary elections. The Nexus poll indicated that Prodi’s coalition received between 50 and 54 percent of the vote in both the upper and lower chambers of parliament, while Berlusconi’s coalition received 45-49 percent.

Obviously this is the ‘early days’ stage, and we shouldn’t jump to conclusions. I will be updating as the day (or night) wears on.

Update I: It’s looking firmer for Prodi. More exit polls are coming up with similar results. For example the Piepoli Institute’s exit polls for Sky TG24 have given the Prodi coalition 52 percent to 47 percent for Berlusconi’s centre-right and for both houses.

Update II. Tobias has now posted more extensively. First thing Tuesday morning the outcome is still in doubt, and those who were sceptical about the early exit polls were right to be so. Prodi is now claiming victory, but this is being challenged vigorously by the Berlusconi camp. The margin is wafer thin for the lower house (the Chamber of Deputies, or ‘Camera’), with Prodi’s having 49.80 per cent of the vote as compared to 49.73 per cent for Berlusconi’s House of Freedoms (a difference of a mere 25,000 votes). Naturally calls for a recount abound. The position of the Senate is still in doubt. There is currently a one seat difference between the camps (in favour of Berlusconi) but six more seats based on overseas votes are still to be allocated.

Wikipedia have a substantial entry on the elections themselves, and another on the Italian parliament, which may prove useful in understanding things if the final out come is ultimately a ‘hung’ parliament.

Flexicurity – a working model for Europe?

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Before moving in to the nitty-gritty of flexicurity; what it is and whether it can work as a universal European labour market model I should take the time to thank the AFOE team for allowing me a spell as a guest-writer here at the blog in the coming two weeks. In terms of presentation my name is Claus Vistesen and I am a Danish student at the BLC program at Copenhagen Business School. For further info I invite you to visit my personal blog Alpha.Sources, which deals with a wide range of topics of my interest.

There is a lot of talk and flurry at the moment about labour market reforms in Europe, notably in France, but also Germany has been struggling with how to reform the labour market and here as well as here.

Looking to the north we find the Nordic countries who seemingly have the best of two worlds; low uemployment coupled with a high degree of security but what is it exactly that the Nordic countries are doing, and could others potentially follow their example?
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Changing Colors

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The CDU in Baden-Wuerttemberg is conducting negotiations with the Greens in that state to decide if the two parties should form a coalition government. If they do, it will be the first “black-green” coalition at the state level, and another sign of fluidity in Germany’s post-reunification party politics.

Update: Maybe next time. The CDU and FDP will, according to reports today, continue the coalition that has run the southwest for the last 10 years. Germany changes slowly.
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Dutch (in)tolerance

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Dutch shocklog Retecool has posted an entry containing a link to an episode of the BBC’s Hard Talk in which Stephen Sackur is grilling Dutch right-wing MP Geert Wilders, founder of Group Wilders and the new Party of Freedom.

You can watch the episode by clicking here (RealPlayer, 23 minutes). Before you click, please read what’s below the fold first.
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