May 17 2013

Brussels blog round-up for 11 – 17 May: France in recession again, ‘Schwabylon’, and how to become a British Eurosceptic.

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Chris Gilson takes a look at the week in Brussels blogging.

The EU centre and the crisis

Jon Worth looks at six potential candidates from the European People’s Party for the President of the European Commission, including the Polish Prime Minister Donald Tusk, and the current IMF head, Christine Lagarde. Meanwhile, Ralf Grahn profiles how some of the Europarties are beginning to prepare for the European Parliamentary elections in May, 2014, while Décrypter la communication européenne makes the important point that the political parties and parliamentary groups have been allocated €92 million for political communication in 2013. The Verfassungsblog looks at the debate in between some of Germany’s political parties and its Constitutional Court over the threshold for German parties to enter the European Parliament. Romanian MEP Corina Cretu writes that the decision of the country’s Prime Minister Victor Ponta, to attend the upcoming European Council meeting on 22 May is a sign of normalcy for the country.

Craig Willy has an in-depth look at how the Euro crisis has accelerated the continent’s demographic decline. Real Time Brussels reports that Sweden’s Finance Minister, Anders Borg has had a change of heart over austerity – he had previously been in favour of greater cuts, but now argues that the EU countries need to spend more. The Centre for European Reform argues in favour of a dose of inflation for the eurozone, saying that in combination with low interest rates, inflation could encourage greater spending.

By Justus Dahinden (Archiv Justus Dahinden) [Public domain], via Wikimedia Commons

By Justus Dahinden (Archiv Justus Dahinden) [Public domain], via Wikimedia Commons

Meanwhile, Open Europe looks at splits in Germany over banking union: Finance Minister Wolfgang Schäuble has argued against it until further treaty changes occur, while German ECB Board Member Jörg Asmussen has expressed the view that a centralised banking authority should be set up as soon as possible. As emergency loans to portugal of €2.1 billion are approved, Lost in EUrope has a catalog of austerity measures that the country must now undertake, including the loss of 30,000 civil service jobs, the raising of the retirement age to 66, and an extended working week of 40 hours. Open Europe has a good roundup of where each EU state stands in terms of bail-ins – some big splits still remain.

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May 16 2013

Bulgaria’s low election turnout is a symptom of the growing mistrust for the ruling GERB party and the country’s political system.

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Antoaneta Dimitrova 80x108Last weekend’s election saw GERB continue as the largest party in Bulgaria’s parliament, a success for former Prime Minister Boyko Borisov. Antoaneta Dimitrova argues that while European commentators may see the election result as confirmation of the government’s good management of the country, the low turnout of 53 per cent suggests that Bulgarians have become disenchanted with GERB and the country’s political system. Recent protests over government corruption, and an electoral system that means 25 per cent of voters are not represented in parliament, may mean more troubled times are ahead in Bulgarian politics.

As so often happens with news from Bulgaria, the results from the recent Bulgarian elections look different from European and Bulgarian perspectives. The elections can barely be explained through existing political theoretical paradigms, for example of theories of democracy, and the gap between democratic theory and Bulgarian realities has never seemed so large. Leaving aside analysis of the concrete results and the difficulty of forming a government based on an almost perfectly split parliament, at present no single perspective can help us understand what the results tell us about the future of Bulgaria’s political system. This could be also the only good news from these elections.

From a European perspective one could say the elections were won by a right centrist party (GERB) supported by other European Christian Democrats, center right parties and the European People’s Party Group. As recently as 2011, Joseph Daul, the EPP group chairman, congratulated GERB leader and former Prime Minister Boyko Borisov for his government’s good financial management, progress achieved in improving key infrastructure and limiting unemployment.

Figure One – Bulgaria election results 2009, 2012

Bulgaria Fig 1

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May 16 2013

As the EU gears up to reform data protection rules, the rift between individuals and companies over online personal data processing is gaping.

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Kristina Irion 80x108Giacomo Luchetta 80x108The EU is currently seeking to replace its nearly two decade old policy on data protection for the Internet, social networking and smartphone age. Its proposed reforms seek to deliver better data protection, legal certainty and trust, with the aim of enhancing the EU’s competitiveness. Kristina Irion and Giacomo Luchetta discuss their new report on Online Personal Data Processing and EU Data Protection Reform, arguing that the reforms may fail due to the real risks of the politicisation of data protection, the still fragmented nature of regulations on electronic privacy, and a lack of innovative elements in the proposals.

Data protection policy has developed from being a niche regulatory subject into a mainstream concern for policymakers, individuals and businesses. The issue’s salience today can be explained by the role that is envisaged for personal data in the emerging information-rich economy. The Boston Consulting Group has estimated that the volume of global data transactions is increasing annually by 45 per cent and in the near future 8 per cent of the EU’s GDP will be directly attributable to extracting value from information. When personal data is a most valuable commercial asset on which many online businesses thrive, companies’ stakes in any regulation that would restrict their ability to use personal data as they see fit are understandably very high.

As online technologies develop, connected mobile devices proliferate and the use of social media grows exponentially, users appear to divulge information about themselves and to accept a company’s terms and conditions with a quick click of the mouse. But it is not just carelessness that makes users surrender their privacy but the fact that consumers are often not empowered vis-à-vis online companies. Numerous studies have shown little consumer confidence in the way many online companies make use of personal data and resignation about users’ effective ability to control their personal data.

Source: Pixabay

Source: Pixabay

Since the 1990s a distinct European approach to data protection has developed which is firmly embedded in a constitutional recognition of the right to privacy. Moreover, the “right to the protection of personal data” has evolved to become a modern fundamental right in the EU. In the face of ongoing transformations that have been spurred on by Information and Communications Technology, we may not yet fully comprehend the importance of these rights for individuals and our democratic culture even in a commercial context. Certainly, data protection should be enabling for modern business models, including those that require sophisticated analytical techniques, as long as this is in the interest of consumers and their ability to influence if and how their personal data is used is respected.

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May 15 2013

History suggests that Norway is in line for a change of government in September’s elections.

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Norway is due to hold parliamentary elections in September. Sveinung Arnesen looks ahead to the elections, arguing that the cost of ruling is taking its toll on the governing centre-left coalition. Despite the country’s oil-rich economy, evidence suggests that the incumbent government is still likely to lose support. He concludes that the stage is set for a centre-right government to come into power in September, unless they stumble like they did in the last elections four years ago.

The political scientist Helmut Norpoth once wrote that “as long as people have chosen political leaders through some form of election, it has been noted, almost like a law of politics, that popularity diminishes with time in office.” The general argument for the cost of rule is that decreasing support comes as high expectations of the newly elected leaders turn into citizen disillusion when they realise the gap between their expectations and what is actually being fulfilled. An alternative explanation is that the electorate changes governments so that the policy outcomes over time remain stable at the centre of the ideological spectrum.

Jens Stoltenberg, Prime Minister of Norway (Credit: Kjetil Ree, CC BY SA)

This regularity is also found in Norway, as there is empirical evidence of a general depreciation in support for incumbents. For example, Gallup polls going back to the mid-1960s describe a negative relationship between holding office and maintaining support among citizens. Whenever one or more parties from the left side of the spectrum are governing, the left bloc as a whole is punished in the poll ratings. Supported by the Socialist Left Party and the agricultural Centre Party, The Labour Party has now lead a majority red-green coalition in Norway for eight consecutive years. Even though more seasoned voters can recall both majority governments and long periods of Labour party reign, the norm in recent decades has been minority governments and fairly frequent changes of government – to be sure more often than every eighth year. For this reason, the sitting government is paddling against the current.

Out of sync with other European countries, Norway is experiencing an oil-induced economic boom almost unprecedented in the history of the nation. One might think that this would help the sitting government gain reelection, but for a red-green coalition, economic prosperity is not good news when it comes to winning votes at the ballot. In the research field of economic voting, it is known that voters punish failing governments, but do not necessarily reward successful ones. Therefore, the incumbent parties cannot expect to reap benefits in the form of vote shares when election day comes. What is more, voters do not fear for their jobs, something which could have helped the parties on the left win over the electorate in September. As paradoxical as it may seem, the economic situation is not likely to help the red-green coalition get reelected.

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May 15 2013

In the wake of the EU brokered agreement, Serbs in Northern Kosovo are more likely to pursue pragmatic co-existence with Pristina

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jelena-obradovic-wochnikOn 19 April, the EU brokered a deal to normalise relations between Serbia and Kosovo. This deal has been opposed by leaders in the majority Serb area of Northern Kosovo, but this view may not be shared by the population, argues Jelena Obradovic-Wochnik. She writes that the potential for EU membership and a pragmatic coexistence with Kosovo means that North Kosovo Serbs may have greater job and economic opportunities; opportunities which may become more important than already weakening political loyalties.

Last month, Serbia and Kosovo reached an agreement on ‘normalisation’ of their relations, following protracted EU-led talks. No official version of the agreement appears to have been published yet – but most analysts have been referring to this leaked version. The highlights of this agreement include a provision for a ‘Community/Association of Serb majority municipalities in Kosovo’, created by statute, and which will have ‘full overview of the areas of economic development, education, health, urban and rural planning’ as well as ‘other powers’. Other important points include the agreement on one police force in Kosovo, as well as a promise to that neither side will block each other’s EU entry.

On the one hand, the agreement appears pretty comprehensive, but on the other hand, it has puzzled some observers: what, if anything, will actually change as a result of it? As many will point out, Serb majority municipalities, under Kosovo’s decentralization laws, already have significant powers to run their own affairs in e.g. education. However, as it is also evident, most of the Northern municipalities do not seem to be using these competencies as much as they rely on Serbian financing, Serbian laws and Serbian institutions to run their affairs. Being largely beyond the control of Kosovo and Serbia, the North, in many ways, already acts as an independent ‘Community/Association’ with no clear rules.

As a number of observers have already pointed out, the North Kosovo Serbs are a crucial factor in implementing the agreement. So far, the community leaders have opposed the agreement. Recently, they declared that the agreement is ‘unacceptable for Serbs in Kosovo’, and that it should not be implemented until the Serbian Constitutional Court weighs in.  But, according to the Serbian media, the agreement is endorsed by Serb community leaders South of the Ibar.

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