Sunday, April 22, 2012

Czechs protest against their government - while Lagarde parades her pocketbook full of promises yet to be fulfilled or ratified , the Eurozone is collapsing


Sunday, April 22, 2012 1:57 PM


European Splintering Escalates: Dutch Government Falls; Slovakia Government Collapsed in March; Czech Government Collapse Coming Right Up


The Netherlands government has officially collapsed in a dispute over austerity measures. Elections likely in September. Meanwhile, the Czech government is also on the verge of collapse, for the same reason: austerity measures.

The Financial Times reports Dutch government falls over budget talks
The Dutch governing coalition collapsed on Saturday when far-right politician Geert Wilders pulled out of budget cut talks, saying it was not in the Netherlands’ interest to meet the deficit limit of three per cent imposed by the new European fiscal pact.EU-imposed austerity measures have cost leaders in southern European countries, including Greece, Italy and Spain, their jobs. With the fall of the conservative Dutch government, and the possibility that Nicolas Sarkozy may lose the French presidential election that begins on Sunday, the damage seems to have spread to Europe’s prosperous north. 


Highlighting widespread voter anger over EU-imposed budget cuts, Mr Wilders said he could not allow Dutch citizens to “pay out of their pockets for the senseless demands of Brussels”.

“We don’t want to follow Brussels’ orders. We don’t want to make our retirees bleed for Brussels’ diktats,” Mr Wilders said.

The loss of Mr Wilders’ support left the conservative government of Mark Rutte, prime minister, with just over a third of the seats in parliament.


Highlighting widespread voter anger over EU-imposed budget cuts, Mr Wilders said he could not allow Dutch citizens to “pay out of their pockets for the senseless demands of Brussels”.

“We don’t want to follow Brussels’ orders. We don’t want to make our retirees bleed for Brussels’ diktats,” Mr Wilders said.
The loss of Mr Wilders’ support left the conservative government of Mark Rutte, prime minister, with just over a third of the seats in parliament.

Mr Rutte and other party leaders said that made new elections inevitable. He is expected to offer his cabinet’s resignation to the Dutch Queen on Monday, but leave the cabinet in place as a caretaker government until elections are held, probably in September.

Exiting the government at this stage will allow Mr Wilders to disclaim any responsibility for unpopular budget cuts. But the biggest winner in elections could be the far-left eurosceptic Socialist party, which has seen its support rise to as much as 20 per cent of the electorate over the past year.

Meanwhile, Dutch analysts said the inability of even the prosperous, deficit-averse Netherlands to generate voter support for Europe-directed budget cuts called the sustainability of the EU fiscal pact into question.
Czech Government Collapse On the Way

Please consider Czech protesters stage anti-government rally
The Czech government faces a test of its ability to continue governing after an ambitious fiscal tightening programme splintered the ruling coalition and brought tens of thousands of protesters on to the streets of Prague at the weekend.
Petr Necas, premier, has set a Monday deadline for a breakaway group from Public Affairs – the smallest of the three parties that made up his centre-right coalition – to demonstrate that it has the support of at least 10 MPs, which would give him a working majority in the 200-member parliament.

Mr Necas has sacrificed much of his popularity after introducing a series of tax increases and benefit cuts in order to keep the budget deficit below 3 per cent next year. The additional measures were brought in after the Czech Republic posted worse than expected growth numbers – largely a consequence of the slowdown in the eurozone, the country’s largest export market.

“We cannot behave in a populist way and we must continue our policy of budget responsibility and debt reduction,” Mr Necas told reporters after one of the largest demonstrations in the Czech Republic’s post-communist history filled the streets of the capital on Saturday to protest at his policies and to show disgust with political corruption.

Organisers estimated that about 120,000 people attended, many of them jangling keys as a signal for the government to go – an echo of the protests that ousted the communists in 1989.
Slovakia Government Collapse

In case you missed it, the right-wing Slovakia government collapsed in March.The Guardian reports Central Europe's centre-right teeters under corruption claims
Austria, Slovakia, Croatia and Czech Republic gripped by sleaze allegations involving senior politicians and governing parties.

Ruling parties, political elites and former ministers in a string of EU countries are embroiled in cash-for-influence scandals that are exposing widespread allegations of corruption, triggering public revulsion and a voters' backlash.

Hunting parties, expensive gifts, drunken car crashes, secret police wiretaps, paper bags stuffed with money and public budgets being treated as private accounts all feature in the lurid revelations and allegations being leaked daily on to the front pages of central Europe.

Austria, Slovakia, Croatia and the Czech Republic are in the throes of sleaze allegations involving senior politicians and governing parties said to be funded by dirty money.

Tales of criminality, thuggery, and vast amounts of cash flowing to politicians from companies, lobbyists, and middlemen are dominating the newspapers and blogosphere across central Europe. In contrast, successful prosecutions are extremely rare for a political class that often seems to operate with impunity. Austria, Slovakia, Croatia, and the Czech Republic are in the throes of major sleaze allegations involving senior politicians and governing parties said to be funded by dirty money.
In Austria a special parliamentary committee investigating political corruption is questioning serving and former ministers this week about a convoluted web of alleged bribery and profiteering from government tenders and skewed legislation.

In an election this month next door in Slovakia, the new prime minister, Robert Fico, won a landslide after support for his rivals on the right collapsed when secret police files about the buying and selling of MPs were unearthed by a Canadian journalist and posted on the internet.

The secret police files, codenamed Gorilla, featured wiretaps of leading financiers meeting discreetly with centre-right governing politicians to trade government tenders for cash.

the latest scandal to rock the region centres on a Czech businessman and a former Prague mayor who are accused of in effect controlling the city's €2bn budget between them.

The businessman, Roman Janoušek, had long been labelled the "shadow mayor" owing to his close links with city hall, but it was not until transcripts of what are believed to be wiretaps of conversations between him and his long-time ally, former Prague city mayor Pavel Bém, were published in the daily Mladá Fronta Dnes that the scale of their alleged rigging of the city finances started to come to light.

The conversations appear to include discussions about influencing sales of city and public property, arranging expensive gifts for city officials and fixing high-ranking official posts.
On May 6 the Greek government is likely to collapse, and Nicolas Sarkozy will be ousted as president of France.

Meanwhile New "Temporary" Border Controls are tantamount to a Vote of No Confidence in Europe

Other than four ousted governments, Troika imposed governments in Greece and Italy, huge budget misses in Spain, increased protectionist measures in France, border controls, bickering between the ECB and the German Central Bank, the Bundesbank proclamation "Not ECB's Job to Tackle Spain's Problems", Europe is holding together quite nicely.


and....


http://www.aljazeera.com/news/europe/2012/04/201242119223472324.html


Czechs stage massive anti-government protest
About 100,000 demonstrators gather in capital Prague in protest against spending cuts, tax rises and corruption.
Last Modified: 21 Apr 2012 20:47

Czech trade unionists protest against the centre-right government's austerity plan on Saturday [AFP]
Tens of thousands of Czechs have staged one of the biggest protests since the fall of Communism, marching in Prague against spending cuts, tax rises and corruption, and calling for the end of a centre-right government already close to collapse.
Police estimated that 80,000 to 90,000 workers, students and pensioners snaked through the capital to rally in Wenceslas Square. Organisers put the total at 120,000.
Chanting and whistling, the crowd held banners proclaiming: "Away with the government" and "Stop thieves". Rallies of such a scale are rare in the country of 10.5 million people.
The demonstration against Prime Minister Petr Necas's government is the third such trade union-led protest in 12 months against austerity measures, and the turnout underscored rising public frustration after a series of corruption scandals.
"This government is devastating state structures and is demeaning the unprotected with its asocial reforms," Jaroslav Zavadil, the head of the Confederation of Trade Unions, told the crowd.
The latest political turmoil was triggered by the defection of Karolina Peake, the deputy prime minister, and her allies from the scandal-ridden junior ruling party Public Affairs.
Necas gave the Public Affairs faction still backing his cabinet until Monday to secure the votes, and warned of early elections possibly in June
Peake has pledged her faction will continue to support the cabinet, but on Saturday it remained uncertain whether she could muster the 10 votes the government needs for the "safe majority" that Necas wants from her to avoid an early poll.
Social Democrats' plan
An early election, two years after the last vote, would be likely to hand power to opposition Social Democrats, who have a nearly 20 point poll lead over Necas' Civic Democrats.
The Social Democrats have pledged to undo some of the government's reforms of the pensions, healthcare and welfare sectors, and to tax companies and the rich to keep the budget under control.
"The reforms are not thought-out. The reforms are chaotic," Bohuslav Sobotka, the leader of the Social Democrats, said before marching on Saturday.
"It is essential that at this moment, Necas's government, which lost legitimacy with the breakup of Public Affairs, hand in its resignation and open the way to new elections."
Public Affairs has been riven by infighting and influential leader, Vit Barta, was given an 18-month suspended prison sentence this month for bribing party colleagues to stay loyal.


Corruption and austerity
A March survey by the Public Opinion Research Centre found that people think official corruption is worst among political parties and in government ministries.
"Corruption is quite bad and they are fighting it very little," said a protester, 30-year-old toolmaker Jaromir Tobias.
"I agree with some of the reforms, but not with how they are explaining it and feeding it to the public. Reforms are necessary but not in this style."
The government survived another crisis earlier this month by agreeing to new hikes in sales and income tax as well as spending cuts worth $3bn next year.
It says the measures are necessary to bring the deficit below three per cent of gross domestic product in order to meet EU budget rules.
Unions said on Thursday that the measures would cost the average wage earner $603 a year - the gross average salary in the Czech Republic is $1,400 per month.
With debate growing in Europe about how effective austerity measures are at reviving debt-ridden economies, the Czechs are well-placed with a state debt load about half the EU average, at 41.2 per cent of annual economic output.
However, austerity and reform have hit domestic consumption, and unemployment hovers at around 8.9 per cent.
The $202bn economy fell into a mild recession last year,despite a record year for exports.

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