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FOLLOWING THE EUROPEAN UNION

 
 
nimh
 
  1  
Sat 17 Jun, 2006 07:30 pm
Slovak elections today. News is that the populist, centre-left Smer has won, but that it might not be able to form a government.

There's even talk (on Bloomberg, for example) of the possibility that instead, loser Dzurinda could cobble together a follow-up government that includes not just the christian-democrats, liberals and Hungarians that make up the current government, but Vladimir Meciar's HZDS as well.

Meciar is the nationalist populist who governed Slovakia rather autocratically in a coalition with the far right and the far left through much of the 90s. But now, having dropped to a mere 10% or so, he is apparently considered the lesser danger, compared to what is described as Smer's populist promises.

This is where I go on a digression. I dont know much about Smer, yet - the party only emerged after the time when I watched Slovak politics closely. My digression, instead, primarily concerns a beef I have with Anglo/American media, though it should end up sketching the Slovak election result from two perspectives as well.

---------------------------

Read, first, what Reuters writes. Leftist ahead of PM's party in Slovak election is the headline.

    "A leftist party vowing to roll back reforms won an election in Slovakia on Saturday, but the reformist prime minister could yet stay in power if he joins forces with other centre-right parties, an exit poll showed".
"Vowing to roll back reforms" - that sounds drastic. A serious setback? And it's a "leftist" vowing so, contrasted with the "reformist" prime minister; for the centre-ground observer it's immediately clear who the good guy is. "Reformist" always sounds progressive and sensible.

    "Smer leader Robert Fico has promised to reverse Dzurinda's internationally-lauded welfare and tax reforms, saying they were too painful for ordinary people and that only the rich were benefiting from Slovakia's economic boom."
Reverse "internationally-lauded welfare and tax reforms", this really does sound bad. I mean, welfare and tax reforms are a good thing, to most observers, in this age of globalisation. Especially if it's not actually specified what they were.

    "Dzurinda has vowed to adopt the euro single currency in 2009. Economic analysts say Fico's policies could delay euro zone entry although he has pledged to respect the target."
This Fico looks like he will put all of Slovakia's perspectives of economic progress at risk. Is this a new Meciar? Slovakia was indeed a mess before Dzurinda came to power, when Meciar ruled over a corrupted, intolerant regime.

    "One of Fico's options may be to turn to centre-right parties, but they are not his natural allies and reject his wholesale criticism of Dzurinda's policies."
Again, the impression that emanates from phrases like "his wholesale criticism of Dzurinda's policies" is one of a drastic reverse of a "centre-right" ("centre" suggesting moderation) course. (Of unspecified policies).

    The article closes off with, "Dzurinda has won plaudits abroad for taking the nation of 5.4 million people into the EU and NATO and setting it on track for euro zone membership, but his partners have often criticised him for what they call a dictatorial streak."
Dzurinda, the conclusion here is, has despite individual flaws taken Slovakia on a centrist, steady and prosperous course to EU standards ... and Fico is endangering it all!

---------------------------

OK. Now for another article, from the Swiss Basler Zeitung: Prognose: Opposition gewinnt slowakische Parlamentswahl. (Dont think I have to translate that.)

    "According to first voter polls, the social-democratic opposition party Smer has emerged as the winner from the Slovak parliamentary elections."
So far, so unalarming.

    "According to a [..] first prognosis, the party Smer-Socialdemocracy, led by Robert Fico" has 26,7%. "The christian-liberal SDKU of Prime Minister Mikulas Dzurinda" only got 13,6%.
Socialdemocratic opposition vs christian-liberal government. Nothing remarkable there either, that's your regular centre-field players in Europe.

    "Susprisingly strong was the performance of the extreme-right Slovak National Party SNS", which got 11,8%.
Now there's a real danger. The SNS was part of Meciar's far-left/far-right government, has a tradition of xenophobic rhetorical outbursts and skinhead supporters, and claims a heritage that goes back to the country's WW2 fascist puppet-regime. Not mentioned in the other story.

    The swing to the opposition takes place against the "backdrop of popular discontent. Though it's true that economic growth in the past year was 6,1%, the Slovaks nevertheless earn, on average, around 450 Euro per month. No country in Europe has a larger discrepancy between wages and economic growth."
Sounds like a hard-to-establish (and unsourced) statistic there, but 450 euro a month is indeed a pittance - and that's the average, lots of people on less as well. Easy enough to see why people would be impatient.

    "Dzurindas coalition government of three Christian-Democratic parties and a liberal party has attracted international attention with business-friendly reforms. Because of rising costs of living and radical social budget cuts the reform politics however remained unloved among the population."
Note - in this article, it is Dzurinda's government that was "radical". Moreover, this article actually specifies a little of what the reforms that Fico wants to reverse actually encompassed:

    "His party announced, in its election program, that it would change the current 19% flat tax into a progressive system, stop privatisations, and introduce a minimal wage."
Shocked Ah yes. So thats what we're talking about. A 19% flat tax; that's an ultraliberal dream, practically unique to Europe. It's not exactly centre-ground or EU standard. And introduce a minimal wage, how dare he? (Hungary has one).

    "Since he founded his party in December 1999, Fico counts as a voice for the unsatisfied and those who have been handed the short end of the stick [Zukurzgekommenen] in the country."
Well, after reading these two articles, I'd say, good for him.

---------------------------

See what my problem with the cookie-cutter Anglo reporting is? It's all cut from the same cloth, the same preconceived division of roles: "reformers" (ie, Western, pro-EU, reasonable, open-minded) versus those who want to "reverse reforms", populists or "leftists" (who put the whole straight and sensible path to Eurozone eligibility at risk).

All of this sketched in evocative phrases and without much actual specification of concrete policies that are proponed or opposed - let alone of how the policies in question would actually compare to those in the countries currently already in the Eurozone.

To buttress this perspective, take as your main quoted expert, for example - as the Bloomberg article does - "an economist at Danske Bank A/S in Copenhagen", and you arrive at the prevalent reporting in English-language media that routinely equates "investor interest" with common sense, and criticism of neoliberal market policies as dangerous populism.
0 Replies
 
nimh
 
  1  
Sat 17 Jun, 2006 07:32 pm
I'm guessing, btw, that Dagmaraka disagrees (even if I havent actually said much about Fico or Smer itself, as I dont know enough) ... wait, lemme see if I can tease her into replying ;-)
0 Replies
 
Walter Hinteler
 
  1  
Tue 20 Jun, 2006 12:39 am
Quote:
EU threatens visa curbs for Americans

By Stephen Castle in Brussels
Published: 20 June 2006

A transatlantic war over visas threatens to derail a summit attended by President George Bush tomorrow, after the EU threatened to impose new restrictions on US diplomats and soldiers.

The escalating dispute arises from visa requirements imposed by the US on travellers from countries that recently joined the EU.

Though travellers from almost all the "old" EU member states are allowed into the US on a visa waiver, those from almost all of the new, mainly ex-Communist nations need a full visa.

The issue is on the agenda for the annual EU-US summit in Vienna. Along with other issues such as the Guantanamo Bay detention camp, the spat could sour a summit designed to debate issues such as Iran and the global challenge on energy.

The EU's threat of retaliation was made explicitly by the European Commission in a letter to Condoleezza Rice, the US Secretary of State, and Michael Chertoff, Secretary of the Department of Homeland Security.

It said: "The [European] Commission will be under increasing pressure to announce the prospect of reciprocal measures as enshrined in our visa law, possibly in respect of diplomatic and service passport holders."

The letter, signed by Franco Frattini, EU justice and home affairs commissioner, and Benita Ferrero-Waldner, EU foreign affairs commissioner, says the issue "will not disappear from the political agenda".

It adds: "It is becoming increasingly difficult for us to explain to citizens of 10 member states that they will require short-stay visas while US citizens can travel without a visa obligation to all 25 EU member states."

The two sides seem destined to clash because the US has little room for manoeuvre. Pressure has been mounting in the US Congress to toughen visa requirements on foreigners rather than relax them.

Technically, the EU could apply counter-sanctions - including slapping a full visa requirement on all US citizens travelling to the EU. But officials concede that this would be an over-reaction.

Imposing visas on diplomats and service personnel would need approval of a bloc of EU governments by majority vote. However, it would only be applied by countries inside (or associated with) the Schengen free-travel zone.

That means the UK and Ireland would not introduce the sanctions against the US. At present citizens of all the "old" EU member states except Greece can take part in the visa waiver. None of the countries that joined in 2004 can do so except Slovenia.

At tomorrow's summit the two sides will announce initiatives to combat counterfeiting, and the EU trade commissioner, Peter Mandelson, will seek to revive the stalled global trade talks.

Though there will be no progress over Kyoto, the US will agree to a dialogue on climate change and clean energy. The US and EU will also call on Russia to allow foreign firms to use its pipelines.

Wolfgang Schüssel, the Chancellor of Austria, which holds the EU presidency, will also raise the issue of Guantanamo Bay.

The EU side is likely to be more circumspect over the issue of CIA rendition flights because European governments have been accused of collusion.

Source
0 Replies
 
georgeob1
 
  1  
Tue 20 Jun, 2006 05:12 am
Walter reports a very interesting development, that is illustrative of the many questions of sovereignty that the EU and states that deal with it and its members will face in the years ahead.

The EU member states still claim individual sovereignty with respect to internationasl policy and in their relastions with other countries. They have formed the EU, deciding to share elements of their sovereignty, to better achieve their own common goals. Other nations are asked to recognize both the individual sovereignty of the EU member states, and, on issues such as this one to also recognize the sovereignty of the Union. Thus the EU demands that the U.S. forego its right to make distinctions between (say) Bulgaria and the UK on matters of the travel of citizens of those countries to the U.S. , but at the same time recognize the individual sovereignty of those nations in international forums and political affairs.

The U.S should (and likely will) resist this threat. Europe wants its benefits both ways, and, in this matter at least, they don't have much leverage. Let them impose their bans - we shall see if the member states of the EU find it in their interest to back up the ambitious EU bureaucrats.
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 05:34 am
I don't understand the logic of this clash either. I mean, if georgeob1 invites me for a trip on his battleship, and Walter joins my gym in Germany, that certainly doesn't mean Walter has a right to take this battleship tour too.

So why should an agreement between the old EU member states and the new EU member states impose obligations on the US? The same principle applies. Facilitated entry into the US wasn't the old members' privilege to grant. It was the US's privilege to grant, just like this trip on that battleship would be George's, not mine. So why would the new members now have a legitimate claim against the United States?

One more reason to remain a Euroskeptic.
0 Replies
 
nimh
 
  1  
Tue 20 Jun, 2006 05:47 am
Hmm, well I suppose the one-for-all, all-for-one principle applies here. Now that the Czech Republic, Poland etc are full EU members, the EU will also actively lobby and, if necessary, put pressure on others on their behalf. Its one of those services that come in exchange for delegating some authorities to the European level. You give some (of your national policy prerogatives), but also get some (a larger, more powerful megaphone to promote/defend your interests).
0 Replies
 
Walter Hinteler
 
  1  
Tue 20 Jun, 2006 05:54 am
nimh wrote:
Hmm, well I suppose the one-for-all, all-for-one principle applies here. Now that the Czech Republic, Poland etc are full EU members, the EU will also actively lobby and, if necessary, put pressure on others on their behalf. Its one of those services that come in exchange for delegating some authorities to the European level. You give some (of your national policy prerogatives), but also get some (a larger, more powerful megaphone to promote/defend your interests).


Yes, to nimh's response.

No to Thomas:
It really would be fun to watch an a naval airforce commanding a battleship ...
But since that can't happen from Thomas' gymn, I think, I get the initation ... would additionally act as navigation officer, George, so you can concentrate more in the two-dimensional kind of moving :wink:
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 06:06 am
nimh wrote:
Sounds like a hard-to-establish (and unsourced) statistic there, but 450 euro a month is indeed a pittance - and that's the average, lots of people on less as well. Easy enough to see why people would be impatient.

This also sounds like bogus. The GDP per capita, a measure of the average income, is $16,600 (PPP) in Slovakia. 450 Euro (= $550)/month gives you $6,600. Thus speaks the CIA world factbook, relying on World Bank Data. Sure, some sources don't adjust for purchasing power, income doesn't equal wages, and the average may be skewed if there is a lot of obscenely rich capitalists and land owners. But none of this would skew the figure by almost a factor of three, which is what you need to explain your source's number. This figure seems fishy.
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 06:10 am
nimh wrote:
You give some (of your national policy prerogatives), but also get some (a larger, more powerful megaphone to promote/defend your interests).

I have no problem with lobbying. I have a problem with the implicit view that the European Union can set the US's admission policy by admitting new members in. The EU has many rightful powers. Admitting tourists into the USA is not one of them. On this point, the US government is right to be indignated.
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 06:17 am
Correction: According to Slovakia's statistical office, the average hourly wage is 17,233 Corona, which converts to quite exactly €450. Your source is right, nimh. This is very strange.
0 Replies
 
Walter Hinteler
 
  1  
Tue 20 Jun, 2006 07:50 am
I interesting aspect from today's Chicago Tribune (page 8, not -yet- online):

Quote:
Polish foreign minister urges expatriates to lobby for nation
0 Replies
 
Walter Hinteler
 
  1  
Tue 20 Jun, 2006 07:52 am
Online version of above report.
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 08:16 am
Well, at least the Chicago expatriates did some pretty impressive PR on Polish Constitution Day. Didn't they?
0 Replies
 
Walter Hinteler
 
  1  
Tue 20 Jun, 2006 08:22 am
Yes - and we still lead 1:0!
0 Replies
 
nimh
 
  1  
Tue 20 Jun, 2006 08:31 am
Thomas wrote:
Correction: According to Slovakia's statistical office, the average hourly wage is 17,233 Corona, which converts to quite exactly €450. Your source is right, nimh. This is very strange.

GDP per capita is a very unreliable indicator of real wages.
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 09:20 am
nimh wrote:
Thomas wrote:
Correction: According to Slovakia's statistical office, the average hourly wage is 17,233 Corona, which converts to quite exactly €450. Your source is right, nimh. This is very strange.

GDP per capita is a very unreliable indicator of real wages.

But usually not off by a factor of 3. This is extreme, and I admit I can't make sense of it at the moment.
0 Replies
 
dagmaraka
 
  1  
Tue 20 Jun, 2006 09:35 am
Well, nimh, I wouldn't quite disagree, but I would not agree either. Fico is a populist, far more dangerous than Dzurinda's "radical" reforms. In a way, they are both radical, but Dzurinda at least delivers, Fico cannot. He promises unrealistic programs. Dzurinda is certainly a right of the center politician, but Fico is first and foremost a populist.
SNS will not be a real danger unless Fico forms a coalition with them. I don't think he's THAT dumb. I pray to heavens he's not. But he's power hungry, he'll take anything at this point if KDH and SMK are not willing to participate in the government with him. At this point I hope they do, because Dzurinda seems to have less and less of a chance to build a coalition. Then Fico could turn to HZDS and SNS, which is THE worst possible scenario ever. And that would mean Dasha's never going home again.

As for the minimal wage, I have no clue what they're talking about.

I don't have the energy to translate all below, but we of course do have minimal wage (39.70SK per hour or 6900 per month for those who work more than 40 hours a week; proportionally more per hour for those who work less than 40 hours a week)

Quote:
Minimálna mzda

Každý zamestnanec má nárok za svoju prácu najmenej na minimálnu mzdu.
Problematiku minimálnej mzdy upravuje zákon č. 90/1996 Z. z. o minimálnej mzde v platnom znení (ďalej len "zákon").

Výška minimálnej mzdy je od 1. 10. 2005:

za každú hodinu odpracovanú zamestnancom 39,70 Sk,
za mesiac 6 900 Sk pre zamestnanca odmeňovaného mesačnou mzdou,
75% súm uvedených v predchádzajúcich odsekoch, ak ide o zamestnanca, ktorý je požívateľom čiastočného invalidného dôchodku, a o mladistvého zamestnanca staršieho ako 16 rokov,
50% súm uvedených v 1. a 2. odseku, ak ide o zamestnanca, ktorý je požívateľom invalidného dôchodku, invalidného zamestnanca mladšieho ako 18 rokov a o zamestnanca mladšieho ako 16 rokov.
Minimálna mzda za každú odpracovanú hodinu je určená pre zamestnancov, ktorých ustanovený týždenný pracovný čas je 40 hodín. Ak ustanovený týždenný pracovný čas je nižší ako 40 hodín, suma minimálnej mzdy za každú odpracovanú hodinu sa úmerne zvýši.
0 Replies
 
dagmaraka
 
  1  
Tue 20 Jun, 2006 09:40 am
wait...how can average wage be 17SK per hour, and minimal wage 39 SK per hour...? hmmmmmmm.
Btw, to cite my source: Law No 90/1996 Coll (amended on Oct 1 2005)
0 Replies
 
Thomas
 
  1  
Tue 20 Jun, 2006 09:43 am
Thomas wrote:
nimh wrote:
GDP per capita is a very unreliable indicator of real wages.

But usually not off by a factor of 3. This is extreme, and I admit I can't make sense of it at the moment.

On further Googling, it turns out that the resolution of the mystery is a remarkably low price level in Slovakia. According to UNECE (PDF), the United Nations' Economic Commision for Europe, Slovakia's GDP per capita is 222323 Slovak corona, which converts to 7,304.16 US Dollars. Adjusting for purchasing power, however, raises this to $14,009. So the average price level in Slovakia must be almost a factor 2 lower than in the US, and those $550 per head and month actually buys them as much as $1,100 would buy them in the US. It's still not much, and it still means the share of capital among the Slovak GDP must be high. But the discrepancy is no longer absurd.
0 Replies
 
dagmaraka
 
  1  
Tue 20 Jun, 2006 09:48 am
oh, i see. that's not 17SK per hour, but 17,000 per month. Ah yes. Go have coffee, dags.

By the way, finance.sk posts a different sum: 16,022 SK per month to be average wage. They include domestic workers and migrant workers... probably closer to truth. That's even less than Euro 450 a month. And there are growing disparities between the countryside and urban areas... some regions are outright poverty stricken and doing worse and worse. Fico's votes, unsurprisingly, are largely from these areas. SNS got popular on the back of the Hungarian Status Law and dual citizenship for ethnic Hungarians debate, I don't think their fame will last long.
Yay, gigantic yellow butterfly outside my window, and a squirrel hanging on a tree branch. Gotta go.
0 Replies
 
 

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