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Showing posts with label politics of europe. Show all posts
Showing posts with label politics of europe. Show all posts

Friday, September 14, 2012

Mark Rutte building Dutch coalition





Work to build a new ruling Dutch coalition started Thursday, after conservative leader Mark Rutte bucked a European trend by winning an election despite pushing through tough austerity measures to counter the continent's devastating debt crisis.

Firebrand populist Geert Wilders was hammered at the polls, losing nine of his Freedom Party's 24 seats after campaigning to pull the Netherlands out of the 27-nation European Union and dump its shared currency, the euro.

Dutch voters clearly chose to reinforce pro-European measures.

Since Europe's debt crisis erupted in 2009 and plunged the continent into the economic doldrums, longtime Italian leader Silvio Berlusconi quit, Greece's government fell and French President Nicolas Sarkozy - a conservative like Rutte - was voted out of office.


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Wednesday, September 12, 2012

Holland's likely new coalition will treat EU with caution

Prime minister Mark Rutte's centre right VVD party running neck-and-neck with Diederik Samsom's Labour party in polls

Two Dutch centrist parties are preparing to stitch up a new left-right coalition following an early general election being closely watched across Europe because of its potential impact on responses to the euro crisis and the Franco-German split over austerity versus growth policies.

At the end of a volatile campaign that has seen hard-left anti-European socialists top the polls, traditionally powerful Christian democrats wiped out, and the social democrats of the Dutch Labour party slumping, it was the latter who were making the political weather, staging a remarkable comeback to rival the main governing party as election victors.

The campaign has revolved around Europe and austerity after the minority centre-right coalition of Prime Minister Mark Rutte collapsed in April after less than two years because of disputes over spending cuts needed to meet EU budget deficit targets next year.

Rutte's centre-right VVD party was running neck-and-neck with the Labour party whose new leader, Diederik Samsom, has emerged as the star of the election. Pundits predicted a new coalition of Labour and the VVD with around 70 of the 150 seats at stake, requiring a third junior coalition partner.

The hard-left socialists were tipped to come third, with the far-right anti-immigration maverick, Geert Wilders (pictured), expected to lead his Freedom party to fourth place. Both Wilders and the socialists have waged an anti-austerity, anti-EU campaign, with Wilders's anti-Muslim and anti-immigrant activism playing a much lesser role because of the domination of economic issues and budget cuts.

Samsom has quickly emerged as a prime-ministerial contender due to his strong television performance in the campaign debates. Most polls still predict Rutte's VVD will emerge as the marginal winner, meaning he would be first choice for prime minister. Power politics in the Netherlands get under way in the wake of rather than before an election because of the coalition system and the highly fragmented party spectrum. The horsetrading will start today and the formation of a government could take months.

If, as expected, a Lib-Lab partnership is the basis of the new government, the key sticking points will be over the pace, scale and location of spending cuts and tax rises. There could be disputes over the ongoing attempts to stabilise the euro and Holland's participation in bailing out weaker eurozone countries. Rutte received much criticism during the campaign for declaring on television that Greece would not get another euro of Dutch money.

The outgoing Rutte government was closely allied with Germany in taking a hawkish line on austerity and dictating tough terms to bailout beneficiaries. But his minority coalition collapsed when it emerged that the Netherlands also needed to fill a huge funding gap to meet EU-set budget deficit targets by next year.

Wilders, propping up the minority government in parliament, vetoed the welfare cuts needed to meet Brussels' targets.

In the expected new coalition, Labour will argue for slower spending cuts than Rutte, will take a softer line on eurozone bailouts, and also seek to temper the austerity, tilting the balance of power in the eurozone towards President François Hollande's socialists in France and away from Chancellor Angela Merkel in Berlin.

The two biggest parties, if joined in a coalition, will need to agree on raising the retirement age, on how to reform the most generous system of mortgage tax relief in Europe, on health, social security and other welfare cuts, all to meet EU budget targets in one of the wealthiest countries in Europe with some of the lowest unemployment.

The likeliest outcome of the election will be to demonstrate that the Dutch have turned much more wary of the EU, albeit keen to keep the union and the euro.


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Dutch vote in election set to be dominated by pro-European parties

Polls show Liberals and Labour ahead, dispelling concerns radical eurosceptics might gain sway in a core eurozone country

Mainstream pro-European parties look set to dominate the Dutch parliamentary election on Wednesday, dispelling concerns that radical eurosceptics might gain sway in a core eurozone country and push to quit the European Union or flout its budget rules.

But the Netherlands is likely to remain an awkward, tough-talking member of the single currency area, strongly resisting transfers to eurozone debtors, regardless of whether prime minister Mark Rutte's Liberals or the centre-left Labour party of Diederik Samsom win the most seats.

Opinion polls on Tuesday showed the Liberals and Labour on 36 seats each or the Liberals fractionally in front, with the hard-left Socialists and the far-right anti-immigration Freedom party fading in third and fourth place respectively.

That makes it more likely, though not certain, that Rutte, with the strongest international profile, will stay as prime minister.

Early morning commuters at Amsterdam's central train station were among the first to vote.

Maike Stukkeheim, an artist, said: "I had a hard time choosing who to vote for, in the end I voted Socialists. I don't particularly like them but I wanted to vote left. I think it's (the political landscape0 getting more and more rightwing, more conservative."

The final days of campaigning turned into a two-horse race between Rutte, 45, a former Unilever human resources manager dubbed the "Teflon" prime minister because of his ability to brush off disasters, and the energetic Samsom, 41, an ex-Greenpeace activist whose debating flair wowed voters.

Both parties have played down talk that they will end up in coalition, together with one or two smaller parties, but parliamentary arithmetic suggests this is the most probable outcome given a highly fragmented political landscape.

But about a fifth of the 12.5 million voters say they are undecided, leaving room for surprises.

The Netherlands is one of the few triple-A rated countries left in Europe and a longstanding ally of Germany in demanding strict adherence to fiscal discipline. The vote is seen as a barometer of northern European stamina both for austerity and for bailouts to keep the single currency bloc intact.

Thrifty Dutch taxpayers are frustrated by demands for belt-tightening at home, particularly the steady erosion of their cherished welfare state and pensions, while stumping up billions of euros to rescue what they see as profligate budget sinners.

"People have become negative about Europe because we give so much money to Greece and other countries and at the same time we are aware of the fact that we badly need money here to pay for schools, for the army and everything," Jaap Paauwe, a professor of management at Tilburg University, told Reuters.

With the focus on the eurozone crisis and its impact on the domestic economy, Europe took centre-stage during the campaign.

Employers' groups representing big businesses such as electronics giant Philips as well as small and medium-sized firms that form the backbone of the economy ran a campaign highlighting the benefits of EU membership.

The main employers' group hung a banner outside its head office in The Hague proclaiming: "Vote for Europe and your job."

In a pamphlet distributed to voters entitled "The Netherlands earns its living from Europe", business groups said the export-dependent economy would lose €90bn (£72bn) a year in sales without the euro and the EU's internal market.

In contrast, one of the biggest unions posted a cartoon on its website showing the electoral battleground as the last chance saloon with caricatures of Rutte and his allies stalking the saloon bars in the wild west.

Fears over Europe initially played in favour of the two main populist parties, particularly the Socialist party which a month ago was either leading or a close second in opinion polls.

The Socialists have waned largely because of the dismal showing of their leader Emile Roemer, a former teacher, in an almost nightly marathon of television debates.

Geert Wilders, leader of the anti-Islam Freedom party which is calling for the Netherlands to quit the euro and the EU, has also lost support.

Some of his followers are disappointed that he squandered his real power as Rutte's chief ally in parliament when he brought down the government in April by refusing to support another package of budget cuts.


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