Otto Dix (photograph by Hugo Erfurth, c. 1933). Is he smirking?
Dearest chaps,
A peak in the electoral cycles of Europe. As a matter of fact, my head aches.
Otto Dix, Again. I had not choice. His works are terribly inspiring. An essay on the artist’s criticisms of capitalism here.
A rather jolly turn of events with the French Parliament’s election. The republican front against the RN's ascent to power will likely lead to a far-left government. The NFP coalition, formed to counter the far-right and Macron, secured the most seats, though not an absolute majority. The NFP is a mixed bag of 25 left-wing parties, some of which might’ve missed the electoral bus. It has been deemed by some as ungovernable, is ripe for the picking by other parties looking to form a coalition. I’ll let you know how this circus unfolds.
Source: Le Monde
New government in the UK with Keir Starmer at the helm. 412 seats of the 650 available will be hosting Labour backsides. However, this was achieved with a tiny share of the national vote. As Fraser Nelson at the Spectator: “Something pretty big is missing from Labour’s historic landslide: the voters”
In the UK, immigration remains a divisive issue. Brexit certainly appears unhelpful (See below), though one should also recall the cold-shower of Covid-19. Conservatives assert that illegal boat immigration will increase under Labour's rule (some have ominously dubbed it a “Starmada”). The new Labour PM promised zero net migration. Let’s see what happens.
The electoral offering that was presented in the UK last week. Otto Dix. Deux enfants (1921).
Remember Austerity? Where the response to the financial crisis of many European economies was to tighten their budgets. Here is a study showing how this fiscal consolidation had worsened economic growth during the euro crisis (2011-2013). The author, Philipp Heimberger, was kind enough to send through a link to the working paper. “The main empirical finding is that the depth of the economic crisis in the euro area's economies is closely related to the harshness of fiscal austerity.”
The pressure of tariffs. Turkey announced tariffs against China’s car industry of 40% last June. It has just reversed this, carving a very specific exemption for Chinese imports. This nugget dropped shortly after:
Turkey will soon unveil an agreement with BYD Co. to construct a $1 billion plant in the west of the country, Turkish officials said, boosting the Chinese carmaker’s presence in Europe at a time of escalating trade tensions.
Source: Fortune.com
Meanwhile, Germany’s level of public investment is awful among advanced economies. A surprise when considering the long-standing health of the government finances in Germany across all levels. Since the 2000s, Germany has barely been able to overtake depreciation of capital formation (investments in things like roads, bridges, schools … ect). A thorough but slightly dated explanation here. Despite its previous advantage, Germany’s public finances have not exactly recovered its deficit since the Covidian era. The IMF suggests snipping red tape.
Otto Dix: Newborn Baby on Hands (1927).