Weekly Political Compass 3.6.23 | Teneo

Weekly Political Compass 3.6.23 | Teneo

Welcome to this version of the Weekly Political Compass from Teneo’s political danger advisory crew!

This week, we’re taking a more in-depth have a look at Greece and the political implications of a current prepare crash. In the meantime, China’s progress projection seems on the low facet of expectations, whereas modifications at Japan’s Central Financial institution are imminent. Turkey’s opposition continues to maneuver forward of elections, Chile kicks off one other constitutional re-write course of, and Nigeria’s election season continues amid authorized challenges from February’s vote. Our graph of the week zooms in on divergent international views in direction of Russia.


International Snapshot

Greece’s Prime Minister Kyriakos Mitsotakis’ authorities will come below intense stress this week over the Tempe prepare crash on 28 February. Our Director of Analysis Wolf Piccoli explores the political implications.

Why is the accident inflicting the federal government issues?

Poor disaster administration and a flawed studying of the general public temper within the aftermath of the tragic accident have pressured the federal government to go on the defensive forward of an impending electoral course of. On 5 March, Mitsotakis apologized for the lack of life and the circumstances of the collision in a social media posting. Mitsotakis had beforehand stated that the catastrophe was “primarily all the way down to a tragic human error,” blaming the stationmaster at Larissa prepare station.

What are the political signposts forward?

Earlier than the accident, it was broadly believed that Mitsotakis would name elections for 9 April and that this announcement can be made earlier than 10 March. Though this stays a risk, the PM will wish to first see how the general public response evolves. A potential complication concerning the 9 April date is that it will coincide with the 40-day memorials (a Greek Orthodox custom) that will likely be held for many who died within the prepare crash. An alternate for Mitsotakis is to go away the elections till mid- or late-Could.


What to Watch



On the opening of China’s annual parliament session, the Nationwide Folks’s Congress, outgoing Premier Li Keqiang introduced a GDP progress goal of 5% for 2023, under final yr’s goal of 5.5% however nicely above precise progress of three% in 2022. The 2023 goal is on the low facet of expectations, suggesting that after the financial system missed final yr’s goal attributable to zero-Covid, the brand new slate of high officers led by incoming premier Li Qiang prefers a goal that may be simply met.


Outgoing Financial institution of Japan governor Haruhiko Kuroda will chair the ultimate financial coverage committee assembly of his ten-year tenure this week. No coverage change is anticipated when the MPC publicizes its determination on 10 March. Successor Kazuo Ueda is about to be confirmed in put up this week by the Weight loss plan forward of assuming workplace from 9 April.

South Korea/Japan

Seoul and Tokyo have reached a tentative deal to resolve the thorny problem of wartime pressured labor of Korean staff. It paves the best way for a significant enchancment in ties which were in deep-freeze since 2017. The settlement would initially see sure Korean companies donate to a basis that might compensate victims, with linked Japanese companies additionally anticipated to make voluntary donations. The rapprochement between its two treaty allies in East Asia is being warmly welcomed by Washington, amid shared trilateral issues over China and North Korea.




European Fee President Ursula von der Leyen will head to North America for conferences with the leaders of Canada and the US this week. The encounter with President Joe Biden on 10 March may open the door for extra constructive exchanges concerning the US inflation discount act. A extra structured strategy to dealing with transatlantic variations about inexperienced industrial coverage – maybe constructing on the precedent of the tech cooperation council – would already be optimistic information. US wishes for a extra forceful EU positioning vis-à-vis China may present an extra incentive.


The primary opposition alliance will meet on 6 March to announce Kemal Kilicdaroglu as its presidential candidate within the 14 Could elections. Kilicdaroglu enjoys the backing of his personal Republican Folks’s Celebration (CHP) and the 4 smaller events united below the Nation Alliance umbrella. The Good Celebration – the second largest occasion within the Nation Alliance – can be anticipated to affix the assembly after its earlier refusal to endorse the CHP chief because the joint presidential candidate. A compromise was reached, permitting the favored mayors of Ankara and Istanbul to be ‘listed’ as Vice Presidents alongside Kilicardouglu as President.


As anticipated, the governing Reform occasion gained the 5 March parliamentary elections and can lead the formation of a brand new coalition authorities. In line with preliminary outcomes, Reform acquired 31.2% of votes (37 mandates), leaving the Eurosceptic right-wing Conservative Folks’s Celebration of Estonia (EKRE) second with 16.1% (17 mandates). The Centre occasion underperformed and got here in third with 15.3% (16 mandates), whereas a liberal newcomer Estonia200 (E200) gained 13.3% (14 mandates). The final two events that crossed the 5% electoral threshold have been the Social Democratic Celebration (SDP) with 9.3% (9 mandates) and the conservative Fatherland (Isamaa) occasion with 8.2% (8 mandates).

Whereas Reform has a number of potential coalition companions, its cooperation with E200 and SDP is essentially the most believable situation, which might give the brand new Kallas cupboard a protected majority of 60 deputies within the 101-seat parliament. A brand new authorities is anticipated to be fashioned by April. General, a landslide victory by Reform means coverage continuity, together with sturdy and vocal assist for Ukraine, conservative fiscal administration, a steady tax system, and a higher give attention to nationwide protection and inexperienced power.


The Lithuanian Social Democratic Celebration (LSDP) gained the primary spherical of the municipal elections, receiving the best share of votes (17.5%) in municipal councils and securing ten mayoral positions. As the biggest occasion with an enormous regional community, LSDP normally outperforms in municipal elections. The governing TS-LKD got here in second with 16.2% and two mayoralties, which is a comparatively good outcome given its dropping approval scores. Full outcomes will likely be identified after the second-round vote on 19 March, which can see runoffs for mayoral positions in 34 areas.




The 24-member Committee of Consultants chosen by Congress to provide the draft textual content of a brand new structure begins work from in the present day, 6 March. The Committee has three months to provide its draft, which can then be taken up by a Constitutional Council whose 50 members will likely be elected in a referendum scheduled for 7 Could. The Council will begin its work correct in June and have 5 months to ship a remaining textual content. The ultimate textual content will then go to a ratifying referendum scheduled for 17 December. After the expertise of the failed rewrite of 2021-22, it appears doubtless that voters will endorse moderation in each Could’s vote for the Council after which within the ensuing referendum. Assuming all goes to plan, Chile could have a brand new structure by the tip of this yr.




At the same time as authorized challenges path the outcomes of the 25 February presidential and Nationwide Meeting elections the following spherical of polls kick off this week, with the governorship and state homes of meeting polls on 11 March. By legislation, solely events that participated within the elections are allowed to file a authorized petition difficult election outcomes, and this have to be performed inside 21 days of the declaration of the outcome – within the case of the presidential election, that is 22 March. After this, an election petition have to be heard, and judgement delivered inside 180 days from the date of the submitting of the petition.


Almost two weeks after members of parliament (MPs) demanded that the federal government current particulars of the Home Debt Trade Program (DDEP) for its approval, a date for the presentation has but to be concluded. As beforehand recommended, such a request from parliament couldn’t be dominated out as one other stumbling block within the authorities’s efforts to restructure its home and exterior money owed. The latter delays proceed to pose a draw back danger to the well timed approval from the Worldwide Financial Fund (IMF) Govt Board on the Fund’s in-principle USD 3bn mortgage to Ghana. The most recent growth could be taken as a foregone conclusion that parliament will, once more, demand that any eventual deal reached with exterior collectors be topic to parliamentary scrutiny.


Graph of the Week

International locations proceed to diverge on their views on Russia and the popular end result for the warfare in Ukraine. Whereas a majority of Europeans and Individuals see Russia as an adversary, these views are very completely different in international locations equivalent to China, Turkey, and India. Essentially the most hanging development is noticed in India, the place 51 per cent of respondents see Russia as an ally that shares their pursuits and values. In the meantime, in China and Turkey, respondents look like extra pragmatic, with a majority contemplating Russia a obligatory accomplice with which they have to strategically cooperate. A post-Western worldwide order through which a number of facilities of energy exist seems to be rising, though the US and China will nonetheless outperform the remaining.

The views and opinions in these articles are solely of the authors and don’t essentially replicate these of Teneo. They’re supplied to stimulate thought and dialogue and never as authorized, monetary, accounting, tax or different skilled recommendation or counsel.


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