Spain Tries to Solve Yesterday’s Housing Crisis

Barcelona Spain
Buildings in Barcelona, Spain, December 10, 2017 (Unsplash/Marco Da Silva)

Spain’s ruling left-wing parties have agreed various measures to make housing more affordable, including a rent cap and higher property taxes for landlords.

The proposals are unlikely to be effected in areas ruled by conservatives, and they are right to block them. The pandemic has already made housing more affordable in Spain. The country doesn’t need the government to step in. Read more “Spain Tries to Solve Yesterday’s Housing Crisis”

The Return of European Social Democracy

Olaf Scholz
German Social Democratic Party leader Olaf Scholz attends a conference in Berlin, June 25 (PES)

Olaf Scholz has given German social democracy a new lease on life. For the first time in sixteen years, his Social Democratic Party (SPD) — Germany’s oldest — has defeated the center-right Union of Christian Democrats. Support for the SPD went up from 20.5 to 26 percent in the election on Sunday. Still below its pre-reunification heights, when it would routinely win up to 40 percent, but enough to make Scholz the most likely next chancellor.

His counterparts in Portugal and Spain have been equally successful. António Costa was reelected with 36 percent support in 2019. Pedro Sánchez won two elections that year. Both govern with the support of the far left. Four of the five Nordic countries are led by social democrats. The fifth, Norway, soon will be, after Labor won the election two weeks ago.

It wasn’t so long ago that commentators ruminated on the “death of European social democracy,” myself included. Now it’s back in swing in the north, south and center. What changed? Read more “The Return of European Social Democracy”

Curaçao Accepts Dutch Supervision of Economic Reforms

Willemstad Curaçao
Aerial view of Willemstad, Curaçao (iStock/Texpan)

The new government of Curaçao has accepted Dutch supervision of economic reforms it is due to carry out as part of a COVID-19 rescue plan.

Parties led by Gilmar Pisas won the election in March on a promise to oppose supervision.

The now-prime minister defended his about-face by arguing Curaçao was with its “back against the wall.”

Which was the same argument his predecessor, Eugene Rhuggenaath, made in the election campaign, when Pisas rejected it. Read more “Curaçao Accepts Dutch Supervision of Economic Reforms”

Netanyahu Cruises to Reelection on Back of Vaccination Success

Benjamin Netanyahu
Israeli prime minister Benjamin Netanyahu speaks with General Martin Dempsey, chairman of the American Joint Chiefs of Staff, January 20, 2012 (DoD/D. Myles Cullen)

Parliamentary elections are held in Israel on Tuesday. Prime Minister Benjamin Netanyahu’s conservative Likud is projected to place first with around thirty seats, down from 37. Twelve other parties are expected to cross the 3.25 percent electoral threshold, including two new parties on the right.

I asked our man in Tel Aviv, Ariel Reichard, for comment. Read more “Netanyahu Cruises to Reelection on Back of Vaccination Success”

Biden Plans $1.9 Trillion Coronavirus Rescue Program

United States Capitol
Workers drape a flag from the facade of the United States Capitol in Washington DC for Joe Biden’s inauguration ceremony, January 9 (Victoria Pickering)

Joe Biden is planning to ask Congress for $1.9 trillion in the first weeks of his presidency to cope with the effects of the coronavirus pandemic in the United States.

Matthew Yglesias and Punchbowl News, a new Capitol Hill-focused newsletter, have the details:

  • $400 billion for health, including $50 billion for testing, $30 billion for protective gear and $20 billion for vaccinations.
  • Hire 100,000 public health workers.
  • A mandatory paid sick leave program.
  • $1,400 cheques to all Americans on top of the $600 cheques sent in December.
  • Extend federal unemployment benefits at $400 per week.
  • Extend the eviction moratorium.
  • $30 billion in rental assistance.
  • Raise the federal minimum wage to $15 per hour.
  • Raise the child tax credit to as much $3,600 per year for families with young children.
  • $350 billion in financial relief for local, tribal and state governments. Read more “Biden Plans $1.9 Trillion Coronavirus Rescue Program”

Aruba, Curaçao Agree to Terms of Dutch Coronavirus Aid

Oranjestad Aruba
Facade of the Royal Plaza Mall in Oranjestad, Aruba, February 10, 2015 (Thomas Hawk)

Aruba and Curaçao have agreed to liberalize their economies in order to qualify for continued financial support from the European Netherlands, without which the islands would almost certainly go bankrupt.

The coronavirus pandemic has brought tourism, on which the islands depend, close to a standstill.

Sint Maarten, the third autonomous Dutch island in the Caribbean, has yet to meet the terms of Dutch aid, which include cutting public-sector salaries by 12.5 to 25 percent. Read more “Aruba, Curaçao Agree to Terms of Dutch Coronavirus Aid”

Statism Makes a Comeback in the United Kingdom

London England
The British flag flies over the Cabinet Office in London, England (Shutterstock/Willy Barton)

Two months ago, I argued Britain was once again the sick man of Europe. It had the second-highest per capita COVID death rate among major countries. Economic output had fallen 20 percent from the year before.

The crisis wasn’t lost on policymakers. The dual shock of coronavirus and Brexit — Britain formally left in 2019 but still applies EU rules and regulations this year — has led to something of a quiet revolution in Whitehall: the potential rebirth of the interventionist state.

There is still much wrong with how the British government has handled both events, the poster child for COVID being the decimation of the British aviation and travel industry as well as the arts. Not since the closing of the coal mines has an entire industry shrunk so dramatically.

Yet the seeds of a new statism have been sown — by a Conservative government. Read more “Statism Makes a Comeback in the United Kingdom”

Caribbean, European Netherlands Close In on Bailout Deal

The Hague Netherlands
Dutch government offices and parliament buildings in The Hague (iStock/Fotolupa)

Aruba, Curaçao and Sint Maarten are closing in on a deal with the European Netherlands for hundreds of millions of euros in support to cope with the impact of COVID-19.

The sticking point in negotiations has been the Netherlands’ insistence that Dutch officials would carry out and monitor economic reforms on which the bailout is conditioned; a demand Caribbean leaders argue is incompatible with their autonomy.

Prime Minister Eugene Rhuggenaath of Curaçao, the largest of the three self-governing islands, told lawmakers this week that a compromise is at hand.

The Dutch supervisors would remain, but any decisions they take that affect spending and taxes would need to be ratified by the island legislatures.

The government of Curaçao would also be consulted on the appointment of one of the three supervisors.

Antilliaans Dagblad reports that a majority of lawmakers on Curaçao could agree to those terms.

But Raymond Knops, the Dutch state secretary for the interior, sounded less optimistic on Tuesday, when he told parliamentarians in The Hague that the three islands are currently unable to “bear” their autonomy. Read more “Caribbean, European Netherlands Close In on Bailout Deal”

Dutch King Announces Borrowing, Investments to Weather COVID-19

Willem-Alexander of the Netherlands
King Willem-Alexander of the Netherlands reads out his annual speech from the throne in the Grote Kerk in The Hague, September 15 (Rijksoverheid)

The Netherlands’ ruling center-right coalition unveiled an expansionary budget on Tuesday, when King Willem-Alexander read out his annual speech from the throne to set out the government’s priorities for the next fiscal year.

Whereas the Dutch government, then also led by Mark Rutte, raised taxes and cut public spending during the last economic crisis to keep its budget deficit under the EU’s 3-percent ceiling, it now argues against austerity and is borrowing the equivalent of 7.2 percent of GDP (down from an earlier estimate of 8.7 percent).

Rutte argues the savings made in previous years allow the government to avoid cuts this time.

The Dutch economy is projected to shrink 5 percent this year as a result of COVID-19 and grow 3.5 percent next year, when unemployment would reach 545,000, or almost 6 percent. Debt as a share of GDP is projected to rise from 49 to 61 percent. Read more “Dutch King Announces Borrowing, Investments to Weather COVID-19”