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August 30th, 2009

German state elections: Live

Posted by: Erik Kirschbaum

10 p.m. - So it’s a black eye for Merkel and her conservative party four weeks before the federal election with the likely loss of power in two of three states that went to the polls on Sunday. But will it make a difference for the federal election on Sept. 27? Will Steinmeier’s SPD, now in the driver’s seat to win state offices from the CDU for the first time since 2001, be able to take advantage of the momentum? Will the CDU start to get nervous again after squandering big leads in last month of the 2002 and 2005 federal elections? September could be an exciting month in Germany.

 

9:50 p.m.  Bild newspaper’s Nikolaus Blome writes in a column for Monday’s early editions: “It was an earthquake kicking off the hot phase of the national campaign…The CDU has been spoiled by its past success but now has it in writing that the Sept. 27 election is far from decided.”

 

9:10 p.m. - Here is a video clip of Steinmeier savouring the SPD’s likely move into power in two of the three states that voted on Sunday. It’s been a l-o-n-g time since anyone in Germany has seen the SPD celebrating. Merkel kept a low profile on Sunday evening. No one saw or heard from her.

 

8:10 p.m. - Here’s another way to tell the winners from the losers. Peter Mueller (on the left), who will likely lose his job as state premier of Saarland, was asked in an ARD TV interview just now what his party leader, Chancellor Angela Merkel, might have told him to try to cheer him up in the two hours since the disappointing results for the CDU were published. “She hasn’t called me,” Mueller said, sounding lonely in his defeat. His SPD rival Heiko Maas (right) was then asked if SPD chancellor candidate Frank-Walter Steinmeier had been in touch: “Yes, he and (SPD chairman Franz) Muentefering both called and said they were delighted and said it’s a great signal for the federal election.”

 

8:00 p.m. - German ARD’s flagship network newscast at 8 p.m. leads off with anchorwoman Ellen Arnold saying: “In two of three state elections on Sunday there was a considerable shift in the balance of power. A change in government from conservatives to a coalition of the SPD and Left party is possible in Saarland and Thuringia. In contrast to that a CDU-FDP government is possible in Saxony.” The ARD Tagesschau is the most-watched news show in Germany with 6 to 10 million viewers

 

7:45 p.m. - Here’s the latest Reuters story on the election

 

7:30 p.m. - The dust is starting to settle. I asked Noah Barkin, who has been writing the Reuters stories on this election all weekend, what Sunday’s results mean for next month’s federal election: “Merkel has looked untouchable for months and she still seems on track to win a second term next month. But this gives her Social Democrat opponents a glimmer of hope. It will be tough, but if they can build on this result and raise concerns in the CDU camp over the final weeks of the campaign, the experts we’ve been talking to believe a momentum shift is possible. Merkel needs to hold her lead to get the centre-right coalition with the Free Democrats that she failed to secure four years ago. The questions about whether she can do that have probably risen after these votes.”

 

6:45 p.m. - It didn’t take long for Steinmeier to pop up at an ebullient SPD party headquarters in Berlin to claim victory. He says: “This is a good election for the SPD. The CDU suffered dramatic losses. One thing is clear now: Germany does not want a CDU-FDP coalition.” Steinmeier said the elections were a signal for the federal election: “I’ve been reading that some people think the federal election has already been decided. This election today show how wrong they are. The same thing happened in 2002 and 2005 — the CDU and FDP started divvying up the government jobs in the summer before the election but the result ended up being a lot different than they expected. And I promise you that will be the same again in 2009.”

 

6:40 p.m. - Here’s the updated report from my colleague Noah Barkin

 

6:30 p.m. - Ronald Pofalla, Merkel’s right-hand man in the CDU, steps up to the podium at CDU party headquarters in Berlin. Predictably, he tries to put a positive spin on the probable loss of two states. But he doesn’t look like a very happy man when he says: “There are bright spots on the one side but some shadows on the other,” Pofalla says. “The CDU is the strongest party in all three states and the SPD is beaten, far behind us. We’re the only major party left in Germany.”

 

 

6:20 p.m. - The CDU are licking their wounds and the SPD are celebrating. It’s a bit of a curious sight, considering the SPD is so far behind the CDU in both Saarland and Thuringia. But because the SPD will likely be able to form coalitions with the Left and Greens in those two states, the centre-left party feels like the big winner. It is the first time since 2001 that the SPD won control of a state government away from the CDU.

 

6:08 p.m. Merkel’s conservatives suffered losses in regional elections, exit polls showed. It is a disappointment for her Christian Democrats one month before she seeks re-election in a federal vote. In Saarland, on the French border, and in Thuringia, in the ex-communist east, CDU leaders who have ruled for a decade saw their support slump to 34.5 percent and 32.5 percent, respectively, and could be unseated by leftist coalitions. In a third regional vote in the eastern state of Saxony, Merkel’s party looked poised to retain power, as expected. 

 

6:02 p.m. - Merkel’s Christian Democrats suffer heavy losses in two states, Saarland and Thuringia and could lose power in those two states — according to German TV exit polls.

 

5:45 p.m. - There are about 20 Reuters journalists working in the Berlin newsroom and in three state capitals this evening on this story. They’re going to try to bring the story, the pictures and the TV images to subscribers in Germany and around the world as quickly as possible at 6 p.m. Who will be the big winner? The big loser? What will it all mean for the federal election next month?

 

5:30 p.m. - Just 30 minutes until the polls close. Tension is rising in Berlin as journalists around town scramble to try to get an early glimpse at the exit poll data the networks will be airing shortly. There are some reports of twitter results making the rounds as well but they seem a bit dodgy.

3:30 p.m. - More than 6 million people are eligible to vote in the three state elections today. Voter turnout is running higher in Saarland than in the two eastern states, according to Saarbruecker Zeitung online (in German). A total of 36.7 percent of eligible voters in Saarland had cast their ballots by 2 p.m. — up from 28 percent in the last state election five years ago. In Thuringia, where a close battle is also expected, voter turnout was at 34.9 percent at 2 p.m according to local media reports, up from 29.5 percent at 2 p.m. five years ago. In Saxony, where the CDU is expected to win easily, voter turnout was below 2004 levels: 27.6 percent by 2 p.m. compared to 33.4 percent. 

 

2:30 p.m. - All the leading candidates in the three states have cast their ballots. None had anything especially interesting to say to reporters waiting for their comments. Saarland’s CDU state premier Peter Mueller was on his way back to his car after voting when he was asked what was at stake: “That the election comes to a reasonable conclusion.” His opponent, Heiko Maas of the SPD, was more talkative but said just as little: “We’ve done everything we could,” he said. Thuringia’s CDU state premier Dieter Althaus, who has been fighting hard to keep his job, was asked what he was hoping for today: “For a high voter turnout.” His chief rival, Left party challenger Bodo Ramelow, was asked the same thing and said: “I’m hoping we’ll get more than 26.1 percent we got last time.” 

 

11:15 a.m. Frank-Walter Steinmeier, the SPD candidate running against Merkel in next month’s election, is quoted in Bild am Sonntag newspaper this morning saying he hopes the CDU chancellor will have to start campaigning in earnest after today’s three state elections. She has run a cautious campaign and largely stayed above the fray so far — perhaps understandable with her CDU/CSU conservative bloc holding a 12-15 point lead in opinion polls over the SPD. Aside from the predictable messages from Steinmeier like there is nothing wrong with a SPD-Left coalition in western states anymore and he’s confident the SPD will once again catch up to the CDU/CSU as in the home stretch of the last two federal elections in 2002 and 2005, the Vice Chancellor has one interesting admission in the Q+A with a group of newspaper readers: He does not actually sit down with his laptop in the evenings to write his blogs himself. Instead, Steinmeier revealed, he sometimes calls them through on the telephone. “To be honest, I only rarely get to do that myself. Most of the blogs I’ll call through in the car after the last rally,” Steinmeier told Bild am Sonntag readers.
 
8 a.m. - The polls in three German states holding elections today just opened – exactly four weeks before the federal election. It’s a lovely late summer day across the country and the turnout will likely be high. The three states are an important test for Chancellor Angela Merkel, as my colleague Noah Barkin wrote in this report earlier this morning. The three states have all long been ruled by Merkel’s party, the Christian Democrats. But in two states, Saarland in the west and Thuringia in the east, the Social Democrats could take power in a new leftist alliance with the Left party and Greens. The Left, which traces its roots to the Communist East German party that built the Berlin Wall, has been ostracised in the west — until now. That could all change after today. We’ll be updating this post throughout the day. The polling stations close at 6 p.m. and the first exit polls will be instantly flashed by the German public TV networks — and we’ll keep you posted with live updates here. The exit polls in Germany are often quite accurate and within about 30 minutes we’ll pass along the networks’ even more precise projections.

PHOTOS - From top to bottom: CDU Saarland state premier talks to SPD rival Heiko Maas. SPD Chancellor candidate Frank-Walter Steinmeier celebrates SPD election results on Sunday.  Chancellor Angela Merkel reacts during a discussion in Hamburg on Sunday: Steinmeier, on campaign trail in Saarland last week; Below: Merkel and Peter Mueller, Saarland state prime minister, attend an election campaign rally in Saarland last week. REUTERS/Thomas Peters, Christian Charius, Johannes Eisele (3)

 

 

 

 

 

 

 

 

 

August 28th, 2009

Japan two-party system — long in arriving

Posted by: Linda Sieg

Observers of Japanese politics who have long thought the country was ripe for a real two-party system are watching Sunday's election with a dual sense of incredulity -- surprise that it has taken so long to oust the long-ruling Liberal Democratic Party (LDP), and surprise that it finally looks like happening.

Media surveys show the decade-old opposition Democratic Party is set to win the poll for parliament's powerful lower house -- and probably by a landslide, ushering in party leader Yukio Hatoyama at the head of a government pledged to spend more on consumers and workers than the companies that benefited most from LDP policies.

JAPAN-ELECTION/

That would be only the second time the LDP has lost its grip on government since it was founded in 1955.

"Every one I talk to has that feeling -- they aren't sure it's really going to happen because they thought it would happen before," said Steven Reed, a political scientist at Chuo University who has been analysing Japanese politics for decades. "A lot of people predicted based on hope, and that's not a particularly good variable for predictions."

Those with long memories can't help but recall the only other time the LDP lost power, when heavyweight Ichiro Ozawa and dozens of other lawmakers bolted the party in 1993 and voted in favour of a no-confidence motion against then-premier Kiichi Miyazawa, triggering a political quake that led to the formation of a multiparty, anti-LDP coalition under the telegenic Morihiro Hosokawa.

Hosokawa entranced a public more accustomed to staid, dark-suited and often inarticulate leaders with his media-savvy ways -- striding before cameras at an international leaders' summit with a white scarf around his neck, using a teleprompter at news conferences -- and promising to cut the bureaucratic red-tape that critics said was strangling the world's second-biggest economy.

HOSOKAWA

Eight months later, though, proponents of change watched in dismay as haggling in Hosokawa's eight-party coalition and talk of scandal prompted Hosokawa to step down. Two months after that, the LDP returned to power in an odd-couple alliance with a Socialist premier at the top.

"There was a feeling then that this would work," Reed said of the mood when Hosokawa took power. "The problem was, the LDP lost, but nobody won ... You need an alternative, and building an alternative is not that easy."

Corruption, policy missteps and the fraying of a once-mighty political machine underminded the LDP's support in ensuing years but the ever-adaptable party stayed in power through coalitions.

And when its days appeared numbered under the wildly unpopular prime minister Yoshiro Mori, the LDP turned in 2001 --albeit reluctantly -- to the charismatic Junichiro Koizumi, a wavy-haired maverick with a knack for sound bites, to revive its fortunes by staging a battle against his own party's hide-bound ways under a slogan of reform.

Koizumi's "magic" saved the party for another five years, and he led the LDP to a massive election victory in 2005. But his three successors presided over declining support rates as they stumbled over policies and personnel and failed to connect with voters.

Now smouldering voter anger -- more of a slow burn against the LDP than feverish enthusiasm for the opposition Democrats -- finally looks set to turn out the LDP, as a wary electorate prepares to give change a chance -- even if they're not sure that the new crew can do much better.

Photo credit: REUTERS/Issei Kato (top)

August 28th, 2009

No Obama moment in Japan

Posted by: Yoko Nishikawa

Opinion polls show the opposition Democratic Party of Japan is set for a runaway victory in Sunday's general election, but voters are showing none of the enthusiasm that swept Barack Obama to the U.S. presidency last year.

When I talked to more than a dozen voters in a small town near Hiroshima, western Japan,  they were interested in the election and had a lot to say about it. And most were looking for change -- but not with a great deal of fervour.

Perhaps that's because I was in Higashihiroshima, a conservative rural area surrounded by rice fields and known for its sake. The district has always voted for the Liberal Democratic Party (LDP) that has ruled Japan for all but 10 months during the past half century.

JAPAN-ELECTION/

The voters were also well aware of the raft of challenges, such as growing social welfare costs, facing a new government, and seemed to have low expectations for the Democrats.

"We can go back to the old way if the Democratic party fails," 69-year-old Hiroaki Yamashita told me.

Still, they were pondering a once-unthinkable Democratic Party victory, not due to any wild enthusiam for the opposition Democrats but more so because they were fed up with the LDP.

"In the countryside, many people have been bound by personal connections with the LDP. But it is time for change," 60-year-old Reiko Nishihashi told me.

"We have to let the Democrats take power," she said at a rally by Democratic Party leader Yukio Hatoyama outside a shopping mall, adding she had always voted for the LDP in the past.

It is a common story when talking to voters in Japan, who look past claims that the Democrats have yet to say where they will get the money to fund their campaign promises.

It may not be an Obama moment, but it may deliver a landslide for the opposition party on Sunday.

Photo credit: REUTERS/Kim Kyung Hoon

August 26th, 2009

Merkel softens up and talks baking, makeup and clothes

Posted by: Sarah Marsh

Between running an election campaign and trying to save European carmaker Opel at the weekend, German Chancellor Angela Merkel was baking a currant cake and writing out a shopping list for her husband.

Merkel has sought in recent months to soften her business-like image by opening up about her life at home, hoping to reach out to more voters ahead of the federal election on September 27.

(Photo: Merkel attends the inauguration of the Oslo Opera House, April 13, 2008, Reuters/Bjorn Sigurdson)

As Germany’s first woman chancellor, Merkel used an interview with feminist magazine Emma this week to illustrate her down-to-earth approach to juggling work and family.

According to the Allensbach Institute, a leading pollster, Merkel did not score better with women than she did with men in the last federal election in 2005.

But her gender may be playing a role this year — some 41 percent of women plan to vote for her conservatives next month compared to 34 percent of men.

Merkel, ranked by Forbes as the world’s most powerful woman for a fourth straight year, said she really enjoyed cooking and did so whenever she got the chance, sharing other domestic chores with her husband when their housekeeper was on holiday.

“My husband doesn’t cook, mostly he shops and on Friday I write him a list so he can do the shopping for the weekend,” she said.

Merkel, 55, also divulged details about her look, which was the topic of a hot debate during the federal election campaign in 2005, when she traded a low-maintenance page-boy cut for something more stylish.

“At home I prefer wearing jeans and a jumper or a cardigan,” she said. “As Chancellor I have a make-up artist. But I still have a very pragmatic style: the hairdo must last for 12 or more hours, and I can’t be powdering my nose every two hours.”

August 24th, 2009

Athenians lament Attica forest destruction

Posted by: Dina Kyriakidou

Dark smoke covered the Athens sky over the weekend, its thick plumes rising over the Acropolis and rekindling memories of the huge, deadly fires of 2007 that nearly cost Greece’s ruling conservatives their re-election.

For Athenians glued to TV pictures of frantic residents trying to battle flames reaching their backyards with buckets and garden houses, it was much more than a dramatic struggle to rescue property.

What they were watching was some of the last remaining patches of green around the metropolis of nearly 5 million people going up in smoke, the capital’s “lungs” giving up.

From a small town at the foot of the Acropolis in the early 1800s, Athens has grown into a huge bustling capital with heavy traffic and pollution. It relies heavily on its surrounding green hills to provide oxygen and cool it down in the difficult summer months.

Long the victim of greedy developers, the forests of Attica have been receding as buildings replace what was once pine and fir trees. Amid suspicions that arson was behind the weekend fires, a public prosecutor has ordered an inquiry.

“Despite the huge destruction wiping out Attica’s forests in recent decades, no measures are taken,” said the liberal Eleftherotypia daily. “How much more destruction must Attica suffer to shake a corrupt system?”

Greek blogs like http://press-gr.blogspot.com/ and http://fimotro.blogspot.com/ also decried the illegal construction that has sprouted in the forests around Athens after every big fire. They say many of the homes razed during the weekend blazes should have been have torn down by the state.

“Nobody said that many of the houses destroyed were illegal,” said press-gr.

Environmental groups blame the lack of enforcement of strict zoning legislation for the chaotic development that has expanded the capital in recent decades. If a developer sets fire to a forest and the state turns a blind eye to the buildings that appear there afterwards, they ask, what is to prevent a repeat of this weekend’s destruction?

(A fire-fighting helicopter drops water over a home in Anatoli village northeast of Athens August 24, 2009. Fire-fighters battled wildfires on Monday that swept through homes and huge swathes of forest near Athens, forcing thousands to flee, and were beating back the main front of the inferno on its fourth day. REUTERS/Yiorgos Karahalis (GREECE DISASTER ENVIRONMENT))

August 7th, 2009

Is Malaysia’s net clampdown at odds with knowledge economy?

Posted by: David Chance

The opposition wants to cut the sale of alcohol in a state that it rules and now the government wants to restrict Internet access .

Malaysia is a multicultural country of 27 million people in Southeast Asia. It has a majority Muslim population that of course is not allowed to drink by religion. Yet clearly some do as shown by the sentencing to caning for a young woman handed down recently

(Photo: Prime Minister Najib Razak leaving the National Mosque as he prepared to mark his first 100 days in office in July. Reuters/Bazuki Muhammad)

Proposals by the Pan Malaysian Islamic Party, which wants an Islamic state, could effectively end the sale of alcohol in the country’s richest state, Selangor, which is next to the capital Kuala Lumpur.

Its rules would penalise not only Muslims that consumed alcohol, but also for example Muslim shop assistants in say Tesco’s who could be fined if they sold alcohol.

This is coming from a country whose most celebrated film maker, PJ Ramlee, made movies featuring alcohol, smoking and night clubs as well as cross-racial relationships and whose first premier Tunku Abdul Rahman, a Muslim of course and a member of one of Malaysia’s royal families, was fond of  whisky. 

And the Internet?
If you want to find out anything in Malaysia, you need to read the net. The country’s newspapers, largely owned by the political parties that have run this country for 51 years and which need to be licensed annually, feed their readers a steady diet of pro-government propaganda.

All of the mainstream Malaysian media ignored the Internet restrictions story. The government insists it is only targeting porn with its proposed Internet filters, though few believe them.

That’s not to say the Internet here is perfect - it is as prone to rumour and exaggeration as anywhere else - but sites like Malaysian Insider, Malaysiakini and the Nutgraph provide a critical view.

Numerous blogs both anti- and pro-government provide views and news. Though it must be admitted that the opposition has been far more nimble than the sometimes clumsy government efforts. Leading opposition MP Lim Kit Siang tweets avidly as does the government’s Khairy Jamaluddin, while ex-prime minister Mahathir Mohamad maintains a blog that is acerbic, witty and can appear vindictive.
Whether you take all of them seriously is another matter.  

For that matter, Reuters maintains a Twitter presence here too. 

The most famous, or infamous, blogger Raja Petra Kamarudin has been detained, charged with sedition and sued. Though he appears to have skipped the country to avoid new charges.
He alleged that Prime Minister Najib Razak had been involved in the murder of a Mongolian model. Najib says the allegations are opposition lies and strongly denies them.

One of Najib’s first moves was to try to set up an effective Internet presence to promote his premiership. The site is called 1Malaysia. The brand has spawned a foundation, of which Najib is unsurprisingly the patron, and recently a savings scheme.
Najib’s wife, Rosmah Mansoor has followed suit and went online this week, urging web users not to be seduced by defamatory and seditious websites. 

Malaysia  wants to be as economically advanced as Singapore and South Korea, wants foreign investment and to produce a high-skilled “knowledge economy”. Can it do this and seemingly adopt political restrictions on a par with China and moral restrictions like those of Saudi Arabia?

 Can it bridge huge divides between the opposition and the government or will Najib continue with crackdowns on dissent  as he seeks to maintain a grip on power beyond elections due by 2013?

July 31st, 2009

Argentine president’s gender card wears thin

Posted by: Karina Grazina

 Since she became Argentina’s first elected female president at the end of 2007, Cristina Fernandez has often complained that things are tougher for her because she is a woman.

 Some analysts and historians say that while women in power do face sexism, Fernandez’s frequent playing of the gender card can be detrimental because it emphasizes a perceived position of weakness.

Only a few months after taking office,  Fernandez got into a messy conflict with farmers over taxes, which did lasting damage to her approval ratings.

“It is harder because I’m a woman,” Fernandez said frequently during the farm dispute, which persists more than a year after it began.

In one speech, she said she had committed two sins that explained the ferocity of the attacks against her and her government: first, winning office with lots of votes and second, being a woman.

Since her party was defeated in a June midterm election, the president has kept using the gender issue as sort of a safe-conduct pass.

Last Friday, when she arrived half an hour late to a South American summit in Asuncion, Paraguay, she complained that the media unfairly pick on her when she is late.

“I’ve attended three international summits in which men arrived late and we had to wait for them for half an hour and nobody reported that story,” said Fernandez, who followed her husband, Nestor Kirchner, into the presidency.

Women in power are often more closely observed than men regarding their looks, emotions and families, and Fernandez is no exception. Even prestigious media outlets in Argentina have criticized her makeup and hair, and during her campaign for election she denied reports that she had had cosmetic surgery. She has also been critized for tearing up during speeches or having a masculine attitude. Her inauguration outfit was scrutinized and criticized for copying Spain’s Princess Leticia.

In neighboring Chile, President Michelle Bachelet was said to have too masculine a style, and when she was campaigning there was media speculation over whether she could combine the presidency with raising her children as a single parent. She complained about machismo in the political system when she took office and said women were judged differently from men. But nowadays, with her popularity high, she has been silent on the gender issue.

German Chancellor  Angela Merkel has never blamed gender for bad treatment, although her clothes and a low-cut dress she wore to the opera have been criticized.

German media sometimes refer to her as Angie, an informality that Fernandez also faces. Newspapers often call her “Cristina,” although no male president has ever been referred to by his first name.

PHOTO CREDIT- Argentine President Cristina Fernandez de Kirchner waves (2nd L) during a group photo at the Fifth Summit of the Americas in Port of Spain April 19, 2009. REUTERS/Chris Wattie

July 29th, 2009

Austria’s Graf gets grief over “united Tyrol”

Posted by: Mark Heinrich

Breaking into the summer holiday lull, Austrian politics has gotten into a lather over a far-right populist’s call for a referendum on whether a mainly German-speaking region of northern Italy should rejoin Austria.

No matter how far-fetched, his proposal raised a hue and cry by challenging the taboo of old unreconstructed nationalism in a country restlessly determined to live down its Nazi past.

South Tyrol - Alto Adige in Italian - is an autonomous, Alpine province of Italy bordering Austria. It was annexed by Italy from defeated Austria-Hungary at the end of World War One.

Italy granted increasing self-government to South Tyrol in the decades after World War Two, defusing separatist unrest by Austro-German speakers. It is now among Italy’s richest regions, with an open border to Austria thanks to EU integration.

But Martin Graf, a rightist deputy speaker of Austria’s parliament, declared on Sunday that South Tyrol was actually “part of overall Tyrol”, and only “currently” within Italy.

The universal right of self-determination should apply for all “the German people” in Europe - just as those in old Communist East Germany got their wish to merge into one Germany at the end of the Cold War in 1990. “It’s time to ask the people if there should be one Tyrol,” Graf said.

Graf owes his parliamentary post due to the fact that his far-right Freedom Party replaced the Greens as Austria’s No. 3 party in last year’s parliamentary election.

Some Freedom members have called into question an Austrian law that prohibits neo-Nazi activities. Graf has links to a rightist fraternity, Olympia, that nurses old German nationalist causes and has acted as a platform for Holocaust deniers.

So his South Tyrol remarks were unsettling and drew swift fire from mainstream conservative and centre-left politicians protective of Austria’s delicate democratic reputation.

Some pointed out what they deemed the absurdity and danger of redrawing borders or re-championing national differences in a 21st century European Union that has largely done away with frontier barriers in a spirit of common peace and prosperity.

“(Graf) should avoid such ill-considered and unrealistic statements,” said Guenther Platter, conservative People’s Party governor of Austria’s (North) Tyrol province. “Borders have long since fallen and we live today in the heart of a common Europe. Cooperation between (the two Tyrols) is better than ever.”

Austrian Foreign Minister Michael Spindelegger said Graf’s “radical, unrealistic” comments were at odds with good neighbourly relations with Italy and invited misunderstanding.

Social Democratic party general secretary Laura Rudas accused Graf of “political pyromania”.

A defiant Graf retorted: “None of my attackers are in the position to explain why there should be a self-determination right for Tibetans and Kurds, but it is still being withheld from South Tyroleans after 90 years.”

The solid front of criticism was briefly punctured by a statement of support for Graf from the South Tyrol Freedom faction in the provincial assembly in Bolzano (Bozen in German).

Unconvinced, Austrian media sought out the ethnically German governor of South Tyrol, Luis Durnwalder. He said he was convinced that if a vote were held tomorrow, most South Tyroleans would choose to stay as they are now within Italy.

 ”If parties had six months to campaign on this, you might see a small majority for ‘Anschluss’ with Austria,” he told Austrian state television, using the discredited word for Austria’s enthusiastic accession to Nazi Germany in 1938.

“But it wouldn’t be realistic. Italy would never consent. Violence or terror naturally would be no option. And, given existing treaties, we would never get a majority (for rejoining Austria) in the United Nations.”

Austrian Chancellor Werner Faymann said he would try again to have parliament dismiss the rightist from the speaker job over what he called behaviour damaging to Austrian interests.

But Finance Minister Josef Proell said that while Graf’s remarks were “totally unacceptable and scurrilous”, his conservatives would not contribute votes crucial for a two-thirds majority needed to topple Graf.

He said it would be wrong to turn Graf into “a martyr via parliamentary manoeuvre” and he should resign himself.

Graf ruled that out, saying he could not be punished for exercising his right to free speech.

(Photo: Martin Graf drinks beer during a Fraternity Group meeting in Innsbruck June 20, 2009.  REUTERS/Dominic Ebenbichler)

July 27th, 2009

Austrian subprime woes turn into political hot potato

Posted by: Boris Groendahl

The Austrian government debt agency’s two-year old foray into subprime investments has turned into a political hot potato and sparked an increasingly heated debate between the Social Democrats and conservatives, caught in an uneasy but coalition government without viable alternative.

Austria’s audit court last week revealed that the agency, which in its staid day job issues government bonds and makes sure state coffers are full when they need to be, started to moonlight on money markets in 2002 to earn a little extra money on the side.

Its cash position ballooned from an average 4.5 billion euros in 2002 to a peak of 26.8 billion euros in October 2007. This level “was not only determined by economic necessities, but was also meant to generate additional revenues,” the audit court said in its report.

Sure enough, as much as 10.8 billion euros went into asset-backed commercial paper (ABCP), a class of structured investments that became disreputable when the subprime crisis broke out in 2007. Luckily, the debt agency got away only slightly bruised, with up to 380 million euros in possible losses from those investments.

Even though the loss looks manageable (it equals 0.13 percent of Austria’s GDP), and no rules seem to have broken, two former and the current finance minister – all conservatives – as well as the agency itself find itself at the centre of a debate seeking someone to blame.

The conservatives were caught slightly wrong-footed. Still basking in election successes based on voters’ perception that they, rather than the Social Democrats, were the safe pair of hands to steer the country through the economic crisis, they suddenly faced charges of gambling away taxpayers’ money.

Karl-Heinz Grasser, under whose reign as finance minister the agency’s side business started, and whose life after politics mainly consisted of modelling and launching an ill-fated joint venture with coffee-roasting heir and banker Julius Meinl, said the losses didn’t happen under him – dodging the question why the side business was started in the first place.

His successor Wilhelm Molterer – one of the possible Austrian candidates for European Commissioner – said he stopped the investment when the losses occurred – leaving unanswered why he presided over the greatest expansion of the play money purse. And incumbent Josef Proell, who took office only in 2008, had no convincing explanation why he didn’t mention the losses when he answered a parliamentary inquiry about the agency’s investment policy earlier this year.

The opportunity to milk the incident has not been lost on Social Democrat Chancellor Werner Faymann. "If more than 300 million euros in tax money are at risk you cannot pretend this is business as usual, everything’s alright. This is an insult for taxpayers,” he told Austrian radio. Faymann has summoned Proell, central bank governor Ewald Nowotny – who had to cut short his holiday – and the audit court head to discuss the case next Friday before the occasion to present himself as the true guardian of taxpayers’ money goes away.

Photos: 1) Chairman of Meinl Power Management Karl-Heinz Grasser listens during a news conference in Vienna July 1, 2008. REUTERS/Heinz-Peter Bader. 2) Austrian Finance Minister Wilhelm Molterer addresses a news conference in Vienna April 12, 2007. "Holen Sie sich Ihr Geld zurueck" reads "Retrieve your money". REUTERS/Heinz-Peter Bader

July 8th, 2009

Peace is no kiss, Israeli aide says

Posted by: Allyn Fisher-Ilan

A top adviser to Israeli Prime Minister Benjamin Netanyahu used an odd turn of phrase to explain what some see as a puzzling demand put to Palestinians by the right-wing leader as a condition for any any Israeli agreement to establishing a state in the occupied West Bank.

Netanyahu wants Palestinians to recognise Israel explicitly as a Jewish state, in addition to their having recognised Israeli sovereignty as part of an interim peace deal in 1993. He feels this would symbolise an historic end of conflict, his aides have explained.

At a briefing summing up Netanyahu’s first 100 days in office, advisor Uzi Arad and several other officials rejected criticism from centrist Kadima party leaders who accused the Israeli leader of achieving little on the diplomatic front since his government was sworn in late in March.

Netanyahu had clearly laid out the terms for any future peace deal, they said.  Arad emphasised what he saw as the importance of seeking further Palestinian acceptance of Israel’s existence, before Israel would agree to Palestinians achieving statehood in territory Israel captured in a 1967 war.

“Palestinian recognition of Israel as the state of the Jewish people, which they have so far refused to do, is not a matter of a kiss on the forehead, but a declaration of intent,” Arad said.

“If they don’t do it, they will have a serious problem, something everyone understands,” Arad added, alluding to what would be Israel’s refusal to reach the two-state deal the United  States and Europe have been seeking, unless the condition were met.

Palestinians dismiss Netanyahu’s condition as inconsistent with international law and say it isn’t up to any nation to define the nationality of another.

Another official in Netanyahu’s office said he doubted the Palestinians would ever accept the demand, averring, “because they’re not interested in making peace.”

“If you think that someone stole your house, then you’re never going to make peace,” the official said.

Israeli-Palestinian peace talks are stalled anyway over the issue of Jewish settlement building in the West Bank. Palestinians insist on a building freeze before any return to the negotiating table, while Netanyahu is negotiating with Washington for a partial continuation of the construction.

To read more blogs from Israel and the Palestinian territories, check out AxisMundi Jerusalem.