Heads begin to roll in aftermath of European election shock

As might be expected after some shocking showings in the European Parliament (EP) elections, the heads have begun to roll – and rightly so, some would say.

The most high profile resignation so far is that of the Spanish opposition Socialist leader Alfredo Pérez Rubalcaba (pictured) who stepped down yesterday after his party’s vote share dropped to 23% from 39% in the previous EP election. His decision is not exactly a surprise as many have been scratching their heads over the opposition’s lack of penetration despite numerous opportunities including (but not limited to) the Spanish economic malaise, austerity and Partido Popular’s top level corruption scandal. Where the party goes from here remains to be seen but with the rise of regional (particularly Catalan) parties and the new Podemos movement (see our profile here) the party needs to reassert itself as the primary opposition.

Similarly, a poor showing by the Romanian opposition party saw its leader Crin Antonescu resign along with all the party’s executive bureau. Interestingly, the party has also voted to switch from the liberal ALDE grouping in the EP to the centre-right EPP.

Meanwhile, in Ireland, Labour leader Eamon Gilmore jumped before he was pushed after his party secured barely 7% of the vote – likely paying the price for being the junior coalition partner during a difficult period of government (similar to Lib Dems in the UK or PASOK in Greece). This paves the way for a cabinet reshuffle, but again his replacement is also still unclear.

Other scalps include Igor Lukšič, President of the Slovenian Social Democrats, who has bitten the bullet and stepped down, as well as the leader of the Hungarian Socialists, Tibor Szanyi, who offered his resignation (subsequently accepted) after his party was comfortably beaten by the neo-fascist Jobbik.

There could still be more to follow as the dust settles. But more importantly than those who have lost their heads is for those that just clung on to theirs to get the message and begin pushing for some serious reform across Europe and offering a clear alternative to those who still do not.

Hungarian Commissioner says anti-immigration sentiment in Europe is a "non-issue" - days after a neo-fascist party gets 21% of the vote in Hungary

A bigger threat to the EU
than the UK's 'right to reside test'?

The Barroso Commission's term is rapidly coming to an end and Viviane Reding and Laszlo Andor are neck and neck in a pulsating contest for who will claim the wooden spoon - the award for worst Commissioner. Reding held the lead for a long time but Andor may have just caught up after his comments about immigration at an event yesterday on engaging the youth in EU politics.

According to EurActiv, when asked by an audience member about the rise of anti-immigration in EU member states, specifically towards Bulgarian and Romanian nationals, Andor replied that this was a “non-issue” raised mainly in the UK and Denmark, who were not founding members of the EU. He went on to say that:

“Discussions there are really annoying because they are discussing on non-issues like benefits tourism which is largely a myth.”

Leaving aside the extent of so-called benefits tourism - which we can debate - is a Commissioner from Hungary really saying that anti-immigration sentiment isn't a problem? A bit rich given that an outright fascist party - Jobbik - won almost 21% of the vote in last weekend's Hungarian parliamentary elections, a higher vote share for a similar party than in other EU country, and an increase from around 16% in 2010. Remember, this is a party that even Marine Le Pen from Front National has refused to cooperate with as she considers them to be too nasty.

There are plenty of unpleasant parties around Europe but aside from Greece's Golden Dawn, Jobbik really are in a league of their own. Despite running a more restrained and professional campaign, the party is at its core fundamentally anti-Semitic and anti-Roma, espousing a Hungarian nationalism that sees the inter-war dictatorship under Miklós Horthy when the country was aligned with Hitler and Mussolini as a source of pride. The party also has strong links with fascist paramilitary groups that have been involved with violent street clashes with Roma.

In 2012, the party's deputy parliamentary leader Márton Gyöngyösi infamously argued that

“I think now is the time to assess…how many people of Jewish origin there are here, and especially in the Hungarian parliament and the Hungarian government, who represent a certain national security risk for Hungary.”

The party's 2010 election manifesto meanwhile claimed that:

"The coexistence and cohesion of Magyar and Gypsy is one of the severest problems facing Hungarian society... a segment of the Gypsy community strive for neither integration, nor employment, nor education; and wish only that society maintain them through the unconditional provision of state benefits... certain specific criminological phenomena are predominantly and overwhelmingly associated with this minority, and that as a result such phenomena require the application of fitting and appropriate remedies."

Given their general outlook we imagine Jobbik wouldn't be too keen on large scale EU migrations into Hungary (other than of ethnic Hungarians from bordering countries which they have actively called for).

It is frankly ludicrous for Andor to single out the UK and other member states struggling to address the political and economic ramifications of unanticipated large scale immigration for criticism when a full blown fascist revival appears to be underway in his own backyard.

Hungarian government accuses EU Commissioner of being "extremely ignorant or lying"

EU Justice Commissioner Viviane Reding has been mentioned as the potential nominee of the European People's Party for the post of Commission President when Jose Manuel Barroso steps down next year (of course, gaining the approval of EU leaders is another matter).

One national capital that won't be queueing up to endorse her is Budapest, following Reding's escalating row with the Hungarian government over the country's changes to its judicial system, which it has been claimed allow for too much political interference.

A bitter sub-plot in this argument has been the fate of Francis Tobin - an Irish national found responsible for a fatal road accident in Hungary in 2000 - whose extradition the Irish Courts have refused to sanction despite the issuing of a European Arrest Warrant. Reding seemingly backed the Irish position, claiming she was "not surprised" by the decision.

The latest chapter in this row has been sparked by comments Reding made during a visit to Bulgaria yesterday. We haven't been able to find the original source, but it appears she suggested the Hungarian Supreme Court had been dissolved. The Hungarian government's reaction did not pull any punches:

"These actions and lies of Viviane Reding cause great harm to the public image and reputation of the European Commission. Viviane Reding is either extremely ignorant, or she is lying out of political interests."  

"We call on her to make the data on which she has based her attack public, or failing that, to make an immediate apology."

Ouch!

So where does EU money come from?

Ahead of our impending paper looking at the effectiveness or otherwise of the EU’s structural funds (watch this space) we came across this timely comment from Hungarian PM Viktor Orban - who has been subject to some (ehum) controversy over recent weeks (he took a roasting in the European Parliament on Wednesday).

During an interview with German tabloid Bild, he was asked that given Hungary’s economic crisis, with the country trying to obtain a “safety net” from the EU and IMF, was it right that Hungarians enjoyed a 16% tax rate on their income while Germans had to contribute up to 47% of theirs - which is sort of a silly question.

When Orban pointed out that Hungary didn't owe Germany any money, the interviewer asked about the €2 billion Hungary receives from the EU’s structural funds every year. Orban’s answer:

“Correct, but this money does not come from German taxpayers, but from the EU. This money is available to us as a member of the EU.”

Hello Mr Orban. Where does "EU money" come from?

Here at Open Europe we argue that less wealthy member states such as Hungary should continue to receive EU structural and cohesion funds (though the funds need serious reform). But the money doesn't come from the EU’s magic plant, but from taxpayers - and around 1/5 of the EU's budget just so happens to be financed by German ones.

Incidentally, in our forthcoming paper, we'll present a solution that will make both Hungary and Germany fare better from the EU budget.

Just to whet your appetite.

The EU in 2011

For those of you who can't wait to see what 2011 has in store for European politics, Open Europe has published a briefing looking at the issues facing the EU - and most importantly the eurozone - next year. Read it here.

Let's put it like this: EU leaders better be ready to hit the New Year running...

Hungary declares "economic freedom fight" with EU and IMF

The new Hungarian government, and its Prime Minister Viktor Orbán, has decided it's had enough of being dictated to by the EU and the IMF, which both recently halted bailout-loan talks, saying Hungary wasn't doing enough to make durable cuts in state spending.

Orbán's government has said it will adhere to the 2010 budget-deficit target - 3.8% of GDP - set under the terms of its current loan agreement with the IMF and EU. But it insists how it goes about it shouldn't be the IMF or the EU's concern.

"It's an economic freedom fight," said a senior official in Mr. Orbán's administration. "We are getting back the financial independence of the country."

This will certainly prove to be an interesting backdrop to the ongoing EU discussions regarding 'economic government'.