COVID-19 will likely widen Spanish-Catalan divisions

Subject COVID-19 impact on Spanish politics. Significance Spain is one of the world’s worst-affected countries by COVID-19. Its economic recovery will also be slower and more disjointed than elsewhere. In order to address these unprecedented challenges, Prime Minister Pedro Sanchez is seeking to negotiate a cross-party agreement -- known as the Moncloa Pacts -- involving all non-extreme parties. The talks aim to create a broad political consensus over how to tackle Spain’s social and economic reconstruction, making it easier and faster to implement policy. Impacts A bipartisan pact would likely boost Sanchez’s public support, given that he is the leader pushing for national cooperation. The existence of a pact would strengthen Sanchez’s push for the EU to share the burden of economic reconstruction. The EU’s failure to implement a coordinated economic plan for the reconstruction period would fuel Euroscepticism in Spain.

Significance These scandals are serious for the government because they reflect poorly on dozens of Conservative MPs as well as Prime Minister Boris Johnson. In addition to undermining the government’s public support, they have also damaged Johnson’s support among party colleagues. Impacts Anger towards the government could grow in poorer regions as tax rises and spending cuts are gradually introduced. The persistence of corruption stories threatens to further damage the United Kingdom’s international reputation. Domestic pressures and ‘Brexit fatigue’ may ultimately prevent London from triggering a trade war with the EU.


Significance The three parties successfully negotiated a coalition agreement with a strong emphasis on modernising Germany’s economy. Throughout the negotiations, the parties presented a public image of stability and harmony, yet several divisive issues will test the new government's stability and effectiveness. Impacts The composition of the new government will make it harder for Berlin to win approval for the EU-China Comprehensive Investment Agreement. Chancellor Olaf Scholz will seek to prioritise more unity at the EU level when it comes to foreign policy decision-making. The spread of the Omicron variant will slow economic recovery and potentially delay the transition to a greener economy.


Significance Nevertheless, Le Pen remains the most serious threat to President Emmanuel Macron's hopes for re-election in 2022. She stands above him in some national polls, reflecting her success in broadening RN’s appeal, widespread anti-establishment sentiment and Macron’s unpopularity and mixed record on COVID-19. Impacts To revive the economy, Macron will likely campaign for reform of EU fiscal rules to enable greater levels of state investment. Further terrorist attacks or assaults on police would increase the salience of immigration and law and order ahead of the 2022 election. Ahead of the election, Macron will be reluctant to show public support for the EU-China investment agreement.


Significance As many as a dozen lockdown parties are now alleged to have been held at Downing Street, significantly damaging Johnson’s support among the public and his Conservative Party. His position as party leader and prime minister is gravely threatened. Impacts Johnson’s domestic troubles, coupled with rising economic concerns, increase the chance of an agreement with the EU over Northern Ireland. Disillusionment with Johnson, opposition to net-zero and culture wars open the door for Nigel Farage’s Reform Party to revive its appeal. Rising inflation threatens to undermine consumer confidence and slow the economic recovery over the coming year.


Significance The assassination follows months of political turmoil and rising gang violence and comes just weeks before elections, scheduled for September 26. Interim Prime Minister Claude Joseph, who has taken charge of the country, said yesterday that measures were being taken “to guarantee the continuity of the state and to protect the nation". Impacts Further political assassinations would exacerbate unrest. The Dominican Republic has closed its border, fearing a migrant surge; the situation will bolster public support there for a border wall. The UN Security Council meets today and may authorise emergency action in Haiti; any substantial redeployment, however, would take time.


Significance He did not name a new prime minister. Over July 25-26, Saied dismissed Prime Minister Hicham Mechichi, dissolved his government, suspended parliament for 30 days, lifted parliamentary immunity and declared himself chief prosecutor, triggering Tunisia’s worst political crisis in a decade. Impacts The Ennahda party could be persecuted once again, this time on corruption charges, as the reconciliation offered excludes its members. Tunisia may become a new ideological battleground, pitting Turkey and Qatar against the United Arab Emirates (UAE), Saudi Arabia and Egypt. The EU, the United States and Algeria have some influence on Tunisia and could perhaps play a moderating role.


Significance He was elected on June 9 with a record majority of nearly 68%, after stepping down as prime minister in January. The MPP now holds all the highest offices: the presidency, the office of the prime minister and the office of the speaker of parliament. Impacts Development plans and government finances will rely on rising copper prices. Despite high vaccination levels, COVID-19 is spreading and calls for more lockdowns are growing; these would threaten economic recovery. Beijing will see Khurelsukh as friendlier than his predecessors, but significant concessions to China are unlikely.


Significance The government led by the Slovenian Democratic Party (SDS) is under mounting pressure as Slovenia prepares to take over the European Council presidency. This is due mainly to hostility in parliament and society to Prime Minister Janez Jansa, who promotes a popular but divisive form of national conservatism. Impacts A successful no-confidence vote in the government followed by early elections would complicate Slovenia’s handling of its EU presidency. The fall of the current government and its replacement by the centre-left would improve Slovenia’s relations with the EU and United States. Hungarian Prime Minister Viktor Orban would lose an ally at EU level if Jansa lost office.


Significance Government formation should have been relatively straightforward but a series of political controversies have damaged VVD leader and Dutch Prime Minister Mark Rutte’s credibility with the CU and some opposition parties. Impacts The collective rise of the far-right vote means the far right will continue to worry centrist parties and thus influence government policy. Investment in nuclear energy to meet climate targets is unlikely to be a priority for the new government. Dutch influence in the EU could grow with the departure of Merkel in September, and Macron’s focus on the 2022 election.


Subject The Hungarian government's anti-immigration stance. Significance Prime Minister Viktor Orban and his government have been campaigning against the wave of migrants seeking refuge in Europe, and the EU's handling of the resulting crisis. The government hoped a referendum on October 2 would reject EU settlement of non-Hungarians in Hungary without parliament's consent. With a turnout of less than 50%, the referendum is null and void. Orban's Fidesz party nevertheless claimed victory, as 98.6% of those who cast a valid vote opposed relocation. Impacts The opposition to Fidesz will be able to frame the referendum as its first victory since 2010 and try to build unity on that basis. Fidesz will be unable to extend its popular support on the basis of these results. The EU is unlikely to react forcefully to constitutional amendments in Hungary, given Brexit and elections in France and Germany.


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