Farage wraps up his European Parliament group faster than Le Pen...thanks to a Front National defector

Nigel Farage has managed to form a new Europe of Freedom and Democracy (EFD) group in the European Parliament. The group comprises 48 MEPs from seven EU member states. The anti-immigration Sweden Democrats and the Latvian Farmers' Union both joined forces with UKIP. But the story of the day is that the seventh nationality Farage needed to wrap up his group has been provided by...a French MEP who defected from Marine Le Pen's Front National.

Joëlle Bergeron (see picture) was elected to the European Parliament with Front National last month. However, according to her, she came under pressure to give up her seat to another member of the party deemed as more 'orthodox' and closer to Le Pen. A couple of days before the European Parliament elections, Madame Bergeron had raised a few eyebrows in Front National's leadership by speaking out in favour of giving immigrants the right to vote in local elections in France. She eventually decided not to step down as an MEP, but she quit Front National and joined UKIP's group.   

How these parties will coexist remains uncertain. For example, UKIP wants to quit the EU, and Beppe Grillo’s Five-Star Movement is a rather unpredictable quantity that doesn’t want to leave the EU and supports a financial transaction tax. Indeed, the fact that parties will be allowed to vote independently on each specific issue could help make the alliance more sustainable.  

As we noted in a recent briefing, European Parliament rules mean the EFD group - as all the others - will be entitled to millions of subsidies every year. According to our estimates, based on 2012 figures, Farage's new alliance could claim in total around €5.6 million a year - €3.8 million for the group in the European Parliament, and €1.8 million for the affiliated pan-European political party and foundation. UKIP is not a member of the latter two, so it will only be entitled to a portion of the money specifically devoted to the European Parliament group.

So Nigel was faster than Marine, but Le Pen still has a good chance of forming her own group. She was in Brussels yesterday for a meeting with her new allies, and Polish MEP Janusz Korwin-Mikke was sitting at the table (see picture) - most likely a sign that Poland's Congress of the New Right (KNP) is on board. This means Le Pen only needs one more national delegation to finish the job. Difficult, given that the deadline to register new groups expires next Tuesday, but definitely not impossible.  

Farage suffers another defection: can he still put together a group in the European Parliament?

With the deadline for the registration of European Parliament political groups set to expire early next week (the European Parliament's equivalent of a transfer window), even the moves of individual MEPs can be decisive.

Nigel Farage suffered an unexpected blow yesterday, as Dutch MEP Bastiaan 'Bas' Belder (see picture) announced that he would leave UKIP's Europe of Freedom and Democracy (EFD) group and join the European Conservatives and Reformists (ECR) - the Tories' group.

This complicates things for Farage, who now needs MEPs from at least three more member states (other than UK, Italy, Czech Republic and Lithuania) to gain the seven countries needed to keep his EFD group alive.

Time is running out, but there are still a few options out there, including:

• The Sweden Democrats (who have also applied to join the ECR group); 

• German satirical party Die Partei; 

• Poland's Congress of the New Right (who are also in talks with Marine Le Pen);

• Bulgarian MEP Angel Dzhambazki of the Bulgarian National Movement (VMRO).

Meanwhile, there has been no news from the Le Pen-Wilders front this week. They also need two more countries to wrap up their group. Given that Farage and Le Pen have both ruled out joining forces with Golden Dawn, Jobbik and the German neo-nazi NPD, the room for manoeuvre is now narrower, and the two may well end up contending for the same MEPs. The next few days are going to be interesting.

Grillo joins Farage, but UKIP's group in the European Parliament is not a done deal yet

Now it's official: Italy's anti-establishment Five-Star Movement will try to form an alliance with UKIP in the new European Parliament. Beppe Grillo launched an online survey of Five-Star members and activists on his blog yesterday, and 78% of votes went for Nigel Farage's EFD group.

The survey has drawn criticism from the Italian press, but also from some Five-Star MPs, for a number of reasons:

• Only 29,584 votes were cast, a microscopic amount when compared to the almost 5.8 million votes the Five-Star Movement won in the European Parliament elections;

• The survey only offered three options: EFD (UKIP's group), ECR (the UK Conservatives' group) or non-attached. Other groups that could have been more natural allies of the Five-Star Movement, notably the Greens and the European Left of SYRIZA and Podemos, were not included;

• The three options were presented on Grillo's blog in a way that appeared to privilege Farage's group. The description of the ECR was shorter and less enthusiastic in tone. As regards the non-attached group, the blog warned that being part of it would mean "limited or no influence on the legislative activities of the European Parliament", and would therefore prevent the Five-Star Movement from pushing its political agenda in Europe. A fair point, although it can also be quite difficult to impose your views if you are sitting in a group where no-one agrees with you on certain issues.

Still, the verdict of la rete (the internet) is sacred for Grillo and the alliance with UKIP will go ahead. It will be very interesting to see how this plays out. Although they both emphasise the importance of referenda and direct democracy, the Five-Star Movement and UKIP are not exactly soulmates. Energy policy, EU farm subsidies, financial regulation, the financial transaction tax, GMOs and the EU-US free-trade deal (TTIP) are all issues on which the two parties do not see eye to eye.   

Indeed, the deal between Grillo and Farage is that their parties will sit in the same group, but will vote independently. This could help make the alliance sustainable in the longer term.

So where does this leave Farage with the formation of his group in the European Parliament? The bad news for UKIP is that they still need two national factions to wrap up the group. At the moment, parties from five EU countries are on board: UK, Italy, the Netherlands, Lithuania and the Czech Republic.

On the other hand, though, Farage is now ahead of Marine Le Pen when it comes to the number of MEPs in the respective groups. Farage has 45 MEPs on his side, Le Pen only 38 (42 if you count the Polish KNP party, whose participation has not yet been confirmed).

Will Le Pen and Farage both succeed in putting together a group? And whose will be the largest one? We will likely get the answer over the next couple of weeks.  

Meet Podemos, the great newcomer of the European elections

The European Parliament elections have dealt a blow to Spain's traditional two-party system. Together, Prime Minister Mariano Rajoy's Partido Popular (PP) and the opposition Socialist Party (PSOE) won 49% of votes. In 2009, their combined score was 80.9%. No wonder Socialist leader Alfredo Pérez Rubalcaba has decided to step down following his party's poor showing.

But the big story coming out of Spanish ballot boxes is the success of Podemos (We Can), a new left-wing, anti-austerity movement that came from nowhere to become Spain's fourth largest party and win five seats in the new European Parliament.

And 'nowhere' really means 'nowhere' in this case. Podemos was officially registered as a political party in March 2014 - which makes its performance extraordinary. Its leader, 35-year-old Pablo Iglesias (see picture), is a Political Science professor but also a bit of a TV star in Spain. Interestingly, his parents called him Pablo so their son could bear the same name as Pablo Iglesias, the founder of the Spanish Socialist Party.

Factoids apart, we have been flicking through Podemos's European elections manifesto. The following bits give a good feel for what Podemos stands for in a number of policy areas:

• "Citizens' audit of public and private debt to find out what parts of it can be considered as illegitimate...and declare that those won't be paid back."

• "Creation of democratic and parliamentary control mechanisms for the European Central Bank...Creation of a European public credit rating agency."

• "Regain public control over strategic sectors of the economy: telecommunications, energy, food, transport, health, pharmaceutical and education."

• "Budgetary support for and increased development of public R&D centres, in order to favour the return of Spanish researchers and scientists from abroad."

• "Right to a basic income for each and every citizen, for the mere fact of being citizens" - which sounds a lot like the 'citizenship wage' advocated by the Five-Star Movement in Italy.

• "A moratorium on mortgage arrears for the first houses of families with difficulties in paying their loans back."

• "Increase the EU's social budget, and establish a levy on capital movements within its boundaries" - which basically means saying adiós to free movement of capital. Podemos also calls for a "bigger levy" on movements of capital from the EU to third countries.

• "Establishment of trade agreements among small producers in Southern European countries. Development of specific cooperation mechanisms among Southern European countries." On the other hand, Podemos wants to "abandon" negotiations over the EU-US free trade agreement (TTIP), and calls for a "substantial revision" of the existing EU-Latin America free trade deals.

• "A derogation from the Lisbon Treaty so that public services are exempted from the competition principle." 

• "Stop the use of Memoranda of Understanding" - which set out the conditions attached to EU-IMF bailout loans to struggling eurozone countries.

Call it left-wing, anti-establishment, anti-austerity (but clearly not anti-EU), the rise of Podemos is significant because - similar to what the Five-Star Movement has done in Italy - it can give Spaniards a channel through which they can voice their dissatisfaction with the political establishment (and the current eurozone economic policies), something which has been lacking at the peak of the eurozone crisis.

In an interview with today's El Mundo, Pablo Iglesias has refused to reveal whether he and his movement will stand in next year's Spanish general election. For now, though, it seems Beppe Grillo may just have found someone to work with in the new European Parliament.

And Italy's new President is...the old one! What happens next?

It took the Italian parliament almost three days and six ballots to elect a new President of the Republic. Well, newish. Incumbent Giorgio Napolitano, who will turn 88 in June, eventually caved in to pressure and agreed to serve a second term. This is unprecedented in Italian history and shows how deep the country's political crisis is. Unable to overcome the stalemate and agree on a new President, the main parties have turned to the old one and begged him to stay.

The good news is that, following Napolitano's re-election, Italy looks set to have a new government in place sooner rather than later. The big news is the new government would undoubtedly include Silvio Berlusconi's party.  

What happens next? 

• Napolitano will take his second oath this afternoon. From that moment, he will re-gain the power to dissolve parliament and call new elections.

• Crucially, Napolitano has said he will "clarify the terms" under which he agreed to stay on in his (second) inauguration speech. The Italian media are speculating on at least two conditions. First, a shorter mandate than the seven years set out in the Italian Constitution - otherwise Re Giorgio would be leaving office at 95. Second, and most important, the formation of a national unity government - backed by the centre-left Democratic Party, Mario Monti's centrist group and Silvio Berlusconi's People of Freedom party.

• The markets seem to take the formation of a new government for granted, with Italy's borrowing costs going down this morning. 

• The latest from the Italian media is that Napolitano will hold a swift round of talks and could give someone the mandate to form the new government as early as tomorrow. There are reportedly two clear favourites to lead the new government. One is Giuliano Amato, 75 years old, who already served twice as Italian Prime Minister. The alternative is Enrico Letta, Pier Luigi Bersani's right hand. We would put our money on Amato, especially since not everyone within Letta's own Democratic Party is enthusiastic about him being appointed as Prime Minister.

• The new government is likely to be a mix of politicians and technocrats. It will focus its efforts on bringing home 5-6 key reforms, based on the proposals put forward by the ten 'wise men' earlier this month. We expect the new government to give priority to political, rather than economic reform. Top of the agenda will be changing the electoral system, along with reforming a pretty dysfunctional institutional structure where the two houses of parliament have perfectly equal powers.

• In any case, the new government is unlikely to remain in charge for the entire five-year parliamentary term.

Winners and losers of Italy's presidential election

Silvio Berlusconi: Big winner

Whether you like him or not, Berlusconi's handling of the presidential election was masterful. He avoided 'hostile' candidates being elected (think of former European Commission President Romano Prodi or left-wing Law Professor Stefano Rodotà, Beppe Grillo's man). Any new government will be dependent on his party's support - exactly what Il Cavaliere wanted since the beginning. The centre-left is in disarray, and his centre-right alliance is now ahead in all opinion polls. No surprise Silvio was so radiant when Napolitano's re-election became official on Saturday evening.

Beppe Grillo: Winner

Beppe Grillo also comes out as a winner, although his victory is likely to become more obvious in the longer term. The Five-Star Movement's presidency candidate Rodotà was a high profile one. Yet, Rodotà was ignored by Bersani's Democratic Party - which never really considered backing him without giving any plausible explanation for doing so. Ideal conditions for Grillo to claim "a clever institutional little coup" was materialising. We would expect a surge in popular support for the Five-Star Movement - though maybe not in the immediate future.

Pier Luigi Bersani: Big loser

With a couple of poor strategic decisions, Bersani has pushed his party to the edge of a break-up and lost his left-wing ally SEL. After kissing goodbye what could be his once in a lifetime opportunity to become Italian Prime Minister, he also had to step down as party leader. And his party looks set to be in government with Berlusconi again - an option Bersani firmly opposed. Bersani burst into tears the moment Napolitano was re-elected. Some of that may just be relief at his ordeal being over.

So this is where we are at, but things are moving quickly. Keep following us on Twitter @OpenEurope or @LondonerVince for real time updates from Italy.

The election of the new Italian President: Has Silvio just scored another one?

The Italian parliament starts voting to elect the new President of the Republic today. Centre-left leader Pier Luigi Bersani has agreed with Silvio Berlusconi and Mario Monti to back the candidacy of Franco Marini - an 80 years old, pipe-smoking former trade unionist and Senate speaker (see picture).

Bersani faced a clear political choice. He could either support the candidate put forward by Beppe Grillo's Five-Star Movement (law professor Stefano Rodotà) or go for a more Silvio-friendly name. The decision to back Marini is a clear sign that Bersani does not want to burn all the bridges with Il Cavaliere - given that talks on the formation of the new Italian government will resume after the election of the new President.

However, Bersani may have overlooked the knock-on effects of the decision in his own camp. This is what happened after he told his party about his decision yesterday:

• The party split over Marini's candidacy. Florence Mayor Matteo Renzi, regarded by many as Bersani's successor as party leader, called Marini "a candidate from the past century". Italian papers estimate that up to 90-100 members of Bersani's party will not vote for Marini.

• Bersani's left-wing ally Nichi Vendola said Marini's candidacy was "the end of the centre-left". His MPs will vote for Grillo's man instead.

Needless to say, all this plays into Berlusconi's hands. His centre-right alliance looks far more united at the moment, and is ahead in opinion polls. If Marini is elected as President and the split in the centre-left remains (admittedly two big ifs), Il Cavaliere could be tempted to push seriously for a return to the polls - this time with a good chance of victory.

Finally, a quick reminder of how the voting works. There are 1007 'great electors' (all the 630 MPs + all the 319 Senators + 58 regional delegates). There will be two ballots a day - the first one is currently under way. A two-third majority (672 votes) is required in the first three ballots. A simple majority is sufficient from the fourth ballot on.

Ballots are secret, so it's hard to predict whether Marini will make it in one of the first three ballots. Expect the vote to be very tight anyway. If Marini fails to achieve the two-thirds majority, Bersani may consider putting forward another name to try and repair some of the damage made to his party.

Follow us on Twitter @OpenEurope and @LondonerVince for all the updates on the vote.    

A grand coalition with Silvio is hard to swallow for Bersani, but...

The leader of Italy's centre-left Democratic Party, Pier Luigi Bersani, is in an unenviable position right now. He has been asked by Italian President Giorgio Napolitano to go and meet pretty much everyone (trade unions, employers' associations, political parties) and see if he can get the support he needs to command a majority in Italy's hung Senate. Bersani will report back to Napolitano on Thursday, and is due to meet a delegation from Silvio Berlusconi's PdL party this afternoon.

Berlusconi is playing the hand he has been dealt quite well, taking advantage of Beppe Grillo's refusal to cooperate. Il Cavaliere has already set his conditions for supporting a Bersani-led government: Angelino Alfano (the Secretary General of Berlusconi's party) should be the Deputy Prime Minister, and a man close to the centre-right should be elected as the next Italian President.

Bersani has so far rebuffed Berlusconi's offers, but we have thought of at least three reasons why he may eventually change his mind:

• Bersani is probably facing a 'once in a lifetime' opportunity to become Italian Prime Minister. He is already 61 (although age is not necessarily an obstacle in Italian politics), and if Italy were to return to the polls he would likely come under huge internal pressure to step down as party leader and give way to someone else. Remember Bersani was at the front of an electoral campaign during which his centre-left alliance squandered a double-digit lead in the polls in about two months. Florence Mayor Matteo Renzi seems to be the most obvious candidate to replace Bersani in case of new elections.

• More generally, Bersani's own party is already split on this specific issue - with a group of key members close to Renzi not hostile to cooperation with Berlusconi. Reggio Emilia Mayor Graziano Del Rio, for instance, told La Repubblica that if Italian President Giorgio Napolitano were to propose a 'national unity government' (which in Italian political jargon is also known as Governo del Presidente, the President's government), Berlusconi's and Bersani's parties should not be "picky" and should work together for the good of the country. Bersani can't afford to just ignore these voices if he wants to preserve his party's unity in the longer term.   

• Italy's three largest trade unions - which have close ties with Bersani's party - have explicitly come out against new elections and urged Bersani to form a government "at any cost".

The situation remains extremely fluid, but if cooperation with Berlusconi were the only alternative to re-run elections, these are three reasons why we believe Bersani would at least think twice before sending Italians back to the polls. 

Beppe Grillo demands Five-Star Movement government and euro referendum

Remember Italy?

Looking unusually smart in his dark suit, Beppe Grillo, along with some of his Five-Star Movement colleagues, this morning opened the second day of talks with President Giorgio Napolitano on forming the new Italian government.

After the meeting, Grillo's parliamentary whips Vito Crimi and Roberta Lombardi (see picture) read a short declaration to the press. The following three points stood out:

• The Five-Star Movement's 20-point plan for government would include a referendum on Italy's membership of the euro. This now seems to have become official party policy; 

• The Five-Star Movement wants "a full mandate" to form a government of its own choosing;

• If the Five-Star Movement fails to obtain the mandate, it will request the chairmanship of two key parliamentary committees: COPASIR, which is in charge of supervising Italy's intelligence services; and the committee in charge of supervising Italy's public broadcaster RAI.

On his blog, Grillo has just ruled out supporting "political or pseudo-technocratic governments". This sounds very much like a definitive 'no' to any solution other than a cabinet led by the Five-Star Movement itself, and essentially leaves two options open:

• A national unity government backed by Silvio Berlusconi, centre-left leader Pier Luigi Bersani and possibly Mario Monti. Such a government could be led by either Bersani himself or someone from outside of politics. Incumbent Interior Minister Anna Maria Cancellieri and newly-elected Senate speaker Pietro Grasso (a former anti-mafia prosecutor) are the names doing the rounds in the Italian media at the moment;

• New elections. These could, however, only be called once the next Italian President takes office in mid-May (we explained why in our response to the Italian election results).

Bersani is due to meet President Napolitano this evening at 5pm (GMT). The prevailing view in the Italian media is that the President may announce the name of the (first) person tasked with forming the new government by tomorrow evening, or Saturday morning at the latest.

We'll keep you posted with real-time Twitter updates from Italy. Follow us @OpenEurope or @LondonerVince.