European Politics

While US and European leaders are trying to put together a large coalition against the fundamentalist supporters of terrorism, the Italian prime minister Silvio Berlusconi has caused a diplomatic incident with his declaration on the supremacy of the western civilization. Berlusconi, a media tycoon running Italy since May, is not at his first blunder. Italian voters know his loquacity, but still this didn’t keep them from sending him to government with the elections held in May. Since, Italy’s prime minister, who is also on trial for bribery, has not resolved any of his numerous conflicts of interests, among them his fear of international investigations, which are now necessary to seize the terrorists’ financial resources. Yet, as a traditional friend of Arab nations, Italy could still play an important role in the current diplomatic game due to the presence of the former Afghan king Zahir Shah in Rome.

Oct 6, 2001 - Peter Weber

The attack on the World Trade Center in New York has introduced a new quality in the history of international terrorism, aiming directly at the very heart of all that represents American excellence and leadership in the world. Defending the liberty of all people in the world can have a tremendous cost, but there should be no doubt that this battle will be fought by all friends of a free humanity. Thus, when this fight will be over, the supporters of the terrorists shall recognize that the only effect of their criminal action has been to increase the unity and strength of the alliance of free and civilized nations.

Sep 11, 2001 - Peter Weber

At mid-term of the legislation period German chancellor Gerhard Schröder has already lost seven ministers of his cabinet starting in fall 1998. The latest were the minister of sanity Andrea Fischer (Greens) and the minister for agriculture Karl-Heinz Funke (SPD) who resigned in January amid the mishandling of the crisis following the cases of Mad Cow Disease (BSE) found in Bavaria and Schleswig-Holstein. As a consequence of the news about ill cattle found all over Western Europe, worried consumers have almost stopped buying beef. Schröder has reacted to the crisis nominating two new ministers, among them Renate Künast (Greens), responsible for consumer protection and agriculture, who will try to introduce a new kind of natural agriculture in Germany. Unfortunately for Schröder there are other ministers at risk, first of all foreign minister Joschka Fischer, a Green, who has been questioned over his past as a street-fighter in Frankfurt in the early 70s. Defense minister Rudolf Scharping (SPD) is much criticized for having exposed his soldiers serving in Kosovo to excessive health risks from uranium-tipped munitions used by U.S. forces. Several NATO peacekeepers have died of leukemia since serving in the Balkans, adding yet another concern to the European agenda.

Jan 22, 2001 - Peter Weber

With parliamentary elections held on 23rd December Serbia has made an important step towards democracy, kicking away the remaining representatives of the Socialist regime and paving the way for a new breed of reform-minded leaders. After the triumph of presidential candidate Vojislav Kostunica over Slobodan Milosevic in October, parliamentary elections were now easily won by the new president’s allies of the Democratic Opposition of Serbia (DOS), an 18-party coalition which got 64% of the vote. DOS-leader Zoran Djindjic will be Serbia’s new prime minister. He will need all his political philosophy to rebuild his country’s institutions and economy as well as good friendship with the neighbors. Then a new economic union should be prepared in order to gain real stability for the Balkan region.

Jan 15, 2001 - Peter Weber

After four bloody conflicts Slobodan Milosevic, the “terror of the Balkans”, has met his final defeat. Sixteen months after his last war in Kosovo his criminal regime was finally swept away by a people´s revolt. Beaten in presidential elections by opposition leader Vojislav Kostunica, Milosevic has tried every trick to stay on, but when he ordered to annul the elections, the Serbian people marched upon Belgrade and stormed the Parliament. Yugoslavia´s new president Vojislav Kostunica was warmly welcomed by the European democratic leaders, who have quickly removed most sanctions against the country. But after the forthcoming elections in December the new democratic governments of Yugoslavia and Serbia have the difficult task to reconstruct the economy as well as the democratic institutions and a good neighborhood in the Balkans. First of all the new president must renegotiate the status of Montenegro and Kosovo, two regions trying to pull out of the Federation. Another critical question is the fate of the war criminals, first among them Milosevic, who would not like it to be processed at the Hague.

Oct 22, 2000 - Peter Weber

Twenty months after its start the new Euro currency's reputation is not at its best. In less than two years its cross rate against the Dollar has lost more than 25%. Thus Wim Duisenberg of the ECB has clearly lost the first round in the challenge between the world’s most powerful central bankers. But the economy in Euroland might be better than it seems. Thanks to the progress in integration, growth rates are rising beyond expectations. Important financial reforms are underway in Germany and France and will soon develop their positive impact on private demand. Even on the stock markets Europe has finally found an answer to the NASDAQ challenge, creating its own circuit of most dynamic “New Markets” for technology shares. Started in 1997, the New Market has received an enthusiastic welcome by investors and is now present in six countries with over 400 companies. The Swedish OM Gruppen´s bid on the London Stock Exchange is another surprising episode in the process that sees Europe’s major financial places preparing to merge into one or two integrated stock exchanges. Thanks to the effects of integration, competition is growing for companies as well as for governments, producing benefits for consumers and citizens. Thus the next decade in world economy could as well be a European one.

Sep 3, 2000 - Peter Weber

During its last meeting on Friday 14th July in Bonn the Bundesrat has approved the biggest financial reform in German history. The reform bill was prepared by finance minister Hans Eichel, while chancellor Gerhard Schröder did his best to guarantee its passage in parliament. Facing growing pressure from public opinion, the opposition Christian Democrats were not able to block the reform in the chamber of regions. Schröder’s SPD-Greens coalition has lately realized a whole line of important political successes and is now expected to arrive in pole position at the next general elections in 2002. Their chances will even grow, if the fiscal reform works like expected and the economy takes advantage of the new favorable business conditions. The Frankfurt stock exchange and several industry leaders have already given an enthusiastic salute to the reform which will lessen fiscal pressure by 60 billion DM a year. The economic and political consequences of this breakthrough will soon be felt all over the continent, where the competition for the best fiscal favor has just begun.

Jul 24, 2000 - Peter Weber

After the party finance scandals that hit his predecessor Kohl and the opposition CDU, Gerhard Schröder's SPD-Greens coalition has recovered from its disastrous first year. Thus the Social Democrats have recently defended their positions in the regional elections in Northrhine-Westfalia. But Schröder has even used the opportunity to finally put his government on the right tracks in reform policy: together with his finance minister Hans Eichel he has presented a project for fiscal reform that should prepare the German economy for growing competition in the globalization era. In the meantime the Christian Democrats have been concentrating on getting clear of the scandals. In April the CDU, once a party of catholic patriarchs, has elected its new leader giving a unequivocal signal of renewal: Angela Merkel is a woman, she is protestant and she comes from Eastern Germany, the former DDR.

Jun 8, 2000 - Peter Weber

With the resignation of Massimo D'Alema the Italian Republic has used up its 57th government since 1945. Used up is even the prime minister whose nine-party coalition has been quarrelling without a pause for over a year. Now D’Alema has stepped down after the negative results of his center-left coalition in regional elections. The opposition "Freedom-Pool" led by media-tycoon Silvio Berlusconi won in eight of fifteen regions. Berlusconi´s alliance with his former rival Umberto Bossi of the Northern League has worked particularly well in the productive north asking for devolution. A week after D'Alema's resignation the center-left coalition agreed on the previous treasury minister Giuliano Amato to lead the new government. Due to massive party interference the new prime minister, a Socialist, has presented only a poor cabinet and program. Clinging to power, the party leaders of the center-left coalition don’t seem to have the slightest clue on how to prepare for the general elections early next year.

May 3, 2000 - Peter Weber

Franjo Tudjman will probably be remembered in history as the father of Croatian independence. His secret pact with Slobodan Milosevic for the partition of Bosnia between Serbia and Croatia has given the signal for the definitive dissolution of former Yugoslavia. With his successful offensives against the Serbs castled in Krajina and Slavonia he has restabilized the territorial integrity of the Croatian Republic. But after ten years of quasi dictatorial regime president Tudjman's death in December 1999 has come as a relief for Croatia's democrats. In January parliamentary and presidential elections have sentenced the victory of the democratic opposition. State president in Zagreb is now Stipe Mesic. New prime minister is the Social Democrat Ivica Racan who has formed a center-left coalition. Both agree to drag Croatia away from Balkan absolutisms towards democracy and cooperation. After ten years of international isolation their ambition is joining the EU and NATO.

Apr 25, 2000 - Peter Weber

The general elections in Greece have confirmed the government of Costas Simitis. The prime minister's Socialist party PASOK has won an absolute majority, but the Conservative opposition ND has come a lot closer. Under Simitis' leadership Greece has made large progress in many fields. In foreign affairs the relations with Turkey and Macedonia have improved and the country has finally learnt to keep at distance its traditional ally Serbia. Concerning the economy inflation and debt have been reduced, growth has been steady and the stock market has soared. Simitis has reached these results focussing all efforts on the country´s struggle for joining the euro zone, an ambition that could soon be accomplished. Thanks to the prime minister's sober and steady style Greek democracy has finally left behind large part of the embarrassing scandals and muck that characterized the government of his predecessor Andreas Papandreou. Democracy has returned to where it started and it starts looking quite respectable.

Apr 16, 2000 - Peter Weber

The general elections in Spain have been a triumph for Jose Maria Aznar and his Popular Party. For the first time in modern history a party of the Spanish right has conquered an outright majority in democratic elections. Under Aznar´s leadership the Popular Party has abandoned the remainders of its authoritarian legacy and moved on a more pragmatic, laic and definitely democratic ground. The result confirms therefore also the coming of age of modern Spanish democracy. Aznar´s personal triumph is mainly founded on his pragmatism in economic policies, where he has succeeded in reducing significantly the unemployment rate and privatizing large parts of the state held industries. The Socialist opposition has not convinced the voters with their critics against the policies of privatization, but even worse did the Communist led United Left. Liberated from the need to ask for parliamentary support from some of the minor regional parties, Aznar can now govern the country with a stable majority in the Cortes, but the most difficult problem of Spanish politics will remain the regional question.

Apr 9, 2000 - Peter Weber

After four months of party haggling Austria has finally a new government: a coalition of the Freedom Party FPÖ led by the xenophobic populist Jörg Haider and the Christian Democrat ÖVP under the new chancellor Wolfgang Schüssel (ÖVP). The inclusion of Haider’s far-right Freedom Party has led to Austria’s international isolation. Alarmed by the violation of an unwritten taboo the EU’s prime ministers have downgraded relations with Vienna and many ministers from other European countries refuse to meet with their Austrian counterparts. Austria’s Federal president Thomas Klestil and chancellor Schüssel have tried to tranquilize the Community, but the triumphant FPÖ-leader Haider has made things even worse by pronouncing several offensive statements against the partner countries. The European Union is now in trouble, trying to handle its sanctions against Austria in a rational manner and without making a hero of the Austrian outlaw. On 29th February Haider has stepped down as FPÖ-chairman, but many fear that Austria’s most popular leader is only preparing for the chancellor’s office.

Mar 4, 2000 - Peter Weber

The scandal over slush funds of the German Christian Democrats has turned into a national crisis of democracy. The scandal started when the public prosecutors discovered evidence of secret accounts in the office of a party counselor. Testimonies involved former chancellor and party chairman Helmut Kohl, who has admitted that he has received about 2 million DM, but refuses to reveal the donors. Later more illegal funds were discovered, leading to first political consequences. By effect of the German party finance law the revelations risk to completely ruin the party of Adenauer, Erhard and Kohl. The crisis could topple even the new party chairman Wolfgang Schäuble, though a plausible successor is not yet in sight. In opinion polls the Christian Democrats have sharply fell. Hence, chancellor Schröder's coalition is strengthened, but the Social Democrats must fear to be involved in the scandal, too.

Feb 15, 2000 - Peter Weber

The United Kingdom, Europe’s oldest democracy, is going through a serious process of institutional transition. Devolution towards the new regional parliaments in Scotland and Wales is one significant aspect of the changes. The turn of a centuries-old tradition of centralism shows, however, the determination of Tony Blair’s governing Labour Party to reform the very heart of British politics. Many other projects are yet underway, such as a reform of the House of Lords and of the electoral system. Many of the new concepts, such as people’s sovereignty, federalism and proportional rule, have swapped over to Britain from the Continent, especially through the influence exercised by the EU-integration. Many of the reforms planned by Labour are therefore moving the British democracy closer to its counterparts on the Continent. Thus, the world’s first and unique model of parliamentary democracy could soon lose many of its former peculiarities. All together these changes are going to transform almost any aspect of the British political tradition as we knew it, with the risk to jeopardize even the unique stability, pragmatism and efficiency that has always distinguished the Westminster model.

Dec 20, 1999 - Peter Weber

After half a dozen of downfalls in regional elections Gerhard Schröder's government is at risk. During its first year in power, the coalition of Social Democrats and Greens has shown only limited will and little capacity to reform. Especially left wing Social Democrats have hesitated to fully support liberal reforms of the labor market. Schröder has some responsibility in this situation, since he didn't succeed in defining a clear and straight direction to government action. In sight of the next regional tests in spring 2000, which could make a continuation of the current coalition impossible, the German chancellor has now turned to fight. Emphasizing on traditional symbols of the labor movement, Schröder hopes to regain the lost confidence, but first of all he should enter in a new "direct dialogue" with the German citizens.

Nov 22, 1999 - Peter Weber

Since 1945 the development of post-war Austrian democracy has been characterized by surprising stability, thanks to the responsibility and collaboration of the two major parties, the Christian Democrat ÖVP and the Socialist SPÖ, which often governed the country in a grand coalition. With the recent elections of 3rd October 1999, however, the post-war era of Austrian politics could be turning. Winner of the elections was the opposition FPÖ led by Jörg Haider, the xenophobic enfant terrible of Austrian politics. With a margin of only 400 votes Haider's National Liberals passed by the Christian Democrats, thus becoming the second party in the "National Council". The possibility of the FPÖ entering a coalition has generated serious concerns in the European partner countries as well as in Israel. The shape of the next government in Vienna is not yet in sight, since a simple continuation of the severely punished grand coalition under chancellor Viktor Klima (SPÖ) would appear as a betrayal of the voters' will. Austrian democrats could be challenged to find the courage for significant political change.

Oct 18, 1999 - Peter Weber

Since the start of the "cohabitation" with the Socialist prime minister Lionel Jospin (PSF) in 1997, France's Conservatives led by state president Jacques Chirac (RPR) have been in continuous decline. A bottom line was reached now with the election of the EU-Parliament in June, when Chirac's Gaullist Party RPR reached only 12,7 %, its worst result ever. The biggest problem of Chirac's, who is still very popular among the French people, is now the growing party fragmentation in his conservative alliance, where Nationalist and Europhobic forces proved their strength. In the government coalition the Socialists, reaching 22,0 % of consensus, were at least able to consolidate their leadership, although even in the center-left-alliance some minor parties advanced. In view of the next presidential elections in 2002 both sides and both candidates, Chirac and Jospin, could find it now harder to reorganize their forces. All these difficulties seem to confirm the crisis of the French Presidential System, which has lately evidenced its growing tendency towards distributing the two major political offices to two opposing leaders.

Aug 3, 1999 - Peter Weber

With the German Bundestag and Government moving from Bonn to Berlin, this summer a historic circle will be closed: German politics have returned to where they started in 1871, after the foundation of the Reich by Bismarck. Unlike Bonn, Berlin had been a symbol for some of the worst episodes in German history. But the city that paved the way to disaster was Weimar, the former cultural capital of Goethe and Schiller. In the year 1919 the Assembly of Weimar approved contemporarily the Constitution of Weimar and the opprobrious peace treaty of Versailles, thus laying the grounds for the first unlucky democratic experience in modern Geman history. Fortunately the Germans have learned from the catastrophe of the Weimar Republic and the Basic Law approved in May 1949 has proven a solid ground on which the new democracy in Bonn could establish a stable democratic culture. The achievements of the Basic Law will even guarantee the stability and reliability of the new Berlin Republic.

Jul 6, 1999 - Peter Weber

Due to political disaffection and distraction by the Kosovo conflict only 49 % of European voters found the way to the ballot box in the recent elections to the EU-Parliament held between June 10th and 13th. In most countries the voters used the occasion to chastise the Socialist parties in power. The biggest block in the Strasbourg parliament is now the European Popular Party which surpassed for the first time the Party of European Socialists. Good results obtained even the Liberals and especially the Green Parties, while the Communists suffered a major set-back. The next president of the EU-Commission, Romano Prodi, who is preparing to form the new European executive, must now consider the proposals of the Socialist national governments as well as the requests of the Popular majority block in the EU-Parliament. In September the new Commission must face a confidence vote in Strasbourg.

Jun 28, 1999 - Peter Weber

After 78 days of relentless aerial bombing peace has finally arrived for the harassed populations of former Yugoslavia. On 10th June NATO-airplanes have finally stopped their raids against Yugoslavian military and infrastructure, while the Serbian troops have started to retreat from the Kosovo province, accompanied by many Kosovar Serbs who fear the revenge of the Albanians. Peacekeepers (K-For) from NATO countries and from Russia have occupied the province and the Kosovar refugees are returning to their homes. But many questions remain still unsolved: Can peace be guaranteed by the Kosovo-Force and will the cooperation between NATO and Russian forces work ? How many Kosovar civilians were slain by the Serbian militia during the conflict ? Can the murderers be put on trial ? Is a peaceful living together of Serbs and Kosovar Albanians still possible ? What will be the future status of Kosovo ? Will Serbia find the way to a democratic regime ? What will be the destiny of Slobodan Milosevic ? Who will pay for the reconstruction of the destroyed countries ? Which impact will this war have on the international system and especially on the relations between the European Union, the United States and Russia ?

Jun 21, 1999 - Peter Weber

With the swift election of the new state president Carlo Azeglio Ciampi Italy's political class has given a rare and surprising example of efficiency and responsibility. The former prime minister, finance minister and central banker has been elected due to an agreement between the majority and the opposition. In the past Ciampi has always proved master of a new style of consensus policy and therefore his election has now grown new hopes for the long awaited Constitutional reforms. Before that, however, parties have to run the test of the European elections on June 13th, which could even jeopardize the government stability. Meanwhile in Rome the historic terrorist group "Red Brigades" has made an unexpected return, killing a high government official.

Jun 9, 1999 - Peter Weber

The resignation of the German finance minister and leader of the Social Democrat Party, Oskar Lafontaine, has liberated chancellor Schröder from his major rival and his government from the principal opponent of cuts in the welfare state and radical reforms in the labor market. Albeit the chancellor's success in foreign politics, his party's popularity among voters is in strong decline. A deregulation of the German labor market is overdue, but up to now Schröder's cabinet has done all the opposite. Many Social Democrats are still opposing the idea of a more flexible labor market and try to save the public social security system by forcing more people into it. Chancellor Schröder, who has also taken his party's presidency, has now elaborated some interesting plans, but first he has to convince his own party officials. Meanwhile the opposition stands ready to take advantage from the coalition's difficulties.

May 25, 1999 - Peter Weber

After almost 300 years Scotland has elected a new Parliament. With the regional elections in Scotland and Wales the United Kingdom has made an important step towards devolution of political power. In both regions voters preferred the Labour Party for its reforms in favor of regional resurrection. Nationalist parties arrived second in both assemblies, while the Conservatives and Liberal Democrats found themselves third and fourth. After its victory in Great Britain´s general elections in 1997, Tony Blair's governing Labour Party had accelerated reforms by two referendums for regional autonomy for both Scotland and Wales. The popular decisions in favor of the reform and now the elections of regional assemblies represent only a first step in a wider reform process that is going to change institutions in the UK.

May 17, 1999 - Peter Weber

After a nation-wide series of corruption scandals in 1992/93 and an electoral shift that replaced large part of the political class and parties in the following elections of 1994, Italian politics seems still all the same. Fifteen years of discussion and three inter-parliamentary commissions have produced - nothing but mountains of worthless paper. The Italian people and the European partners are still waiting for the long overdue reform of the Constitution of 1948, but parties won't agree, because they fear to lose part of their extra-large power extent. Thus the only institutional change in the last twenty years has been imposed by popular decision through referendum. But even this instrument has shown less successful, as a new referendum held in April was thwarted. Now Italian parties prepare to elect a new State President just the traditional way: let's talk about it!

May 12, 1999 - Peter Weber

After six weeks of military conflict the news and pictures arriving from Yugoslavia and Albania have recalled to our memory that war means above all an endless chain of immense human suffering. Committing atrocities of all kind, the Serbian militia has expelled almost the whole Albanian population of Kosovo. Helping the refugees has therefore become the most important thing to do. While NATO bombs continue destroying Yugoslavia's infrastructure and economy, Milosevic's army has remained almost intact. NATO's last military option of sending in ground troops is risky for both military and political reasons. Anyway, it could become inevitable, if diplomatic efforts still lack success. Since too many things depend on the outcome of this conflict, NATO cannot give in half way, permitting Milosevic to save his regime. The noble Serbian nation has already paid an extremely high price for its leader's criminal plans. Will Milosevic understand or will he follow Hitler's footsteps, trying to carry his people to his own grave?

May 5, 1999 - Peter Weber

After a legislation period full of turbulent changes in government, with several corruption scandals and a final coup such as the arrest of the Kurdish leader Abdullah Ocalan, a landslide could have been expected by the Turkish general elections. The surprise, however, was not so much the good result of prime minister Bulent Ecevit, whose Democratic Left reached 22,3 %, but the strengthening of the extreme right, the National Action Party (MHP) of Devlet Bahceli which reached 18,1 % and became the second party in the Turkish Parliament. The Fundamentalist, instead, have lost consensus as well as the two conservative parties, Motherland and True Path. Bulent Ecevit is now supposed to form a coalition with True Path and the Nationalists. Though considered one of the more hawkish among Turkish politicians, Mr. Ecevit is largely respected. He has firm democratic and secular convictions and should be a guarantee. But if the MHP, whose paramilitary wing is known as the "Grey Wolves", enter cabinet, Turkey might as well be moving into the unknown.

May 3, 1999 - Peter Weber

With the resignation of the European Commission led by Jacques Santer, the European Union has finally experienced, after 41 years, its first real government crisis. Mr. Santer, a former prime minister of Luxembourg, fell over allegations of fraud and mismanagement against some of his commissioners, accusations which were confirmed by the report of an independent commission engaged by the European Parliament. To resolve the crisis of the European executive, a decision of the European Council, the assembly of the prime ministers of the partner states, was necessary. Under the chairmanship of German chancellor Gerhard Schröder Europe's prime ministers met in Berlin and nominated their former Italian colleague Romano Prodi as the next President of the Commission. Prodi will take his office after the European elections in June. Guiding Europe into the next millennium he will also have a leading role in the necessary reforms of the European institutions.

Apr 20, 1999 - Peter Weber

Since 1989 the Serbian leader Slobodan Milosevic has always had a leading role in the painful dissolution of the Yugoslavian Federal Republic. With the NATO air strikes against Belgrade and the Serbian troops in Kosovo, Europe is witnessing now her first air battle since WW II. Without the employment of ground troops, however, the bombs of the NATO will not impress the Yugoslavian president. In fact, with the NATO attack, Milosevic has already killed two birds with one stone: While his people in Belgrade are distracted by the bombs and forced to back their unloved president, the closing down of communications and the lack of witnesses in the Kosovo province have given him the opportunity to finally carry out his ethnic cleansing program with all his might and cruelty.

Mar 29, 1999 - Peter Weber

The odyssey of the Kurd leader Abdullah Ocalan came to an end when the Turkish secret service kidnapped him on February 16th in Nairobi, Kenya. Reaction of the Kurdish minorities spread all over Europe and the Middle East already caused dozens of victims. European politicians showed themselves very concerned about the disorders and the risks of the forthcoming trial, which could end with a death penalty and the execution of the Kurd leader. Meanwhile in Ankara, prime minister Bulent Ecevit has bettered his prospects for the forthcoming elections in April. But after the elections Turkey's leaders would be wise to be lenient with their prominent prisoner.

Mar 1, 1999 - Peter Weber

The arrest of the Kurd leader and presumed terrorist Abdullah Ocalan in Rome has caused a complicated international row involving several European nations, among them the NATO partners Turkey, Italy and Germany as well as Russia. The dispute about Ocalan's destiny has represented to the European public opinion the drama of the Kurd nation divided between four states. Meanwhile in the Turkish parliament in Ankara even this difficult affair couldn't keep the parties from overthrowing the government of the conservative prime minister Mesut Yilmaz. Threatened by the growing strength of the Islamic Fundamentalists Virtue Party, the Turkish democracy risks falling into turmoil once again. The new government of Bulent Ecevit should prepare the country for the next general elections in April, but the Turkish military stands ready to defend its Kemalistic tradition and interests.

Dec 13, 1998 - Peter Weber

The euro is going to be the new European currency starting January 1st 1999 and it could be a revolution ... While the European Central Bank (ECB), under the presidency of Wim Duisenberg is preparing to step into action as the new guardian of monetary stability, some European governments are showing considerable nervousness. The politicians of the new center left governments in Germany, France and Italy seem to consider the bankers' independence a threat to their expansive economic programs. After their electoral successes, the European socialists, led by the German finance minister Oskar Lafontaine (SPD), are trying to overthrow the politics of austerity and financial rigor in favor of a new Keynesian demand side oriented economic policy. Meanwhile, the central bankers are bracing themselves for resistance.

Dec 7, 1998 - Peter Weber

The start of the new German Government, the Delusions of the New Center and the ambitions of finance minister Oskar Lafontaine... The new German chancellor, Gerhard Schröder (SPD), entered office at the end of October, but his government has had anything but a brilliant start. The conservatives in his Social Democratic Party of Germany have given an impressive proof of their power and will to resist against radical reform projects. The indisputable protagonist of the coalition-negotiations was the SPD leader and new finance minister Oskar Lafontaine, who appears to be more determined and even more powerful than his chancellor.

Nov 19, 1998 - Peter Weber

The crisis of the Prodi-government and the new cabinet of Massimo D'Alema (DS), the first former communist Italian prime minister... In 28 months Romano Prodi's Olive-coalition (center-left) had led Italy from an almost hopeless financial situation to become a fully respected partner in European Currency Union. Then a coalition crisis caused by the Communists and a negative confidence vote in parliament forced the successful prime minister to step down. Unwilling to face new elections, the major government forces proposed an enlargement of their coalition to forces of the right center, excluding at the same time the most unreliable part of the Communist Party. New prime minister Massimo D'Alema is the first ex-communist leader to govern in a Western European country. The circumstances of this crisis highlight the reasons for the enduring political instability in postwar Italy, a country that has seen 55 different governments in 53 years.

Oct 30, 1998 - Peter Weber

The end of the era Kohl and the chances of the new government coalition lead by Gerhard Schroeder... Helmut Kohl (CDU), one of the great protagonists of European politics, has left the scene after sixteen years in power. His electoral defeat in the Federal Elections of September 1998 signs the end of an era. For the first time German voters have imposed a complete change between government and opposition. Thanks to this outcome the new government coalition between Social Democrats and Greens has now a stable majority in parliament and should be able to realize the substantial change demanded by voters. If the winner Gerhard Schroeder (SPD) succeeds in giving new swing to Germany's economy and reform politics, he can become a great chancellor.

Oct 6, 1998 - Peter Weber