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.
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.
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.
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.
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.
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.