Is there ever a "good" budget?
Last month the Danish government turned to the left opposition for support in passing the 1997 state budget. But this unexpected move does not reflect a general turn to the left. Nor is it the result of pressure by trade unions or other social movements. The problem for the government is simply that the right opposition in parliament considered the budget way too moderate. Age Skovrind Earlier in 1996, Social Democratic Prime Minister Poul Nyrup Rasmussen invited all the parties to participate in negotiations about the draft budget. Since the Danish economy had been doing quite well in capitalist terms, and has already met the criteria for European Monetary Union, the draft budget did not include harsh austerity measures, "only" some cuts in health, social and cultural programmes.
The invitation was above all intended for the two big right-wing parties, the Conservatives and the Liberals. The 1996 budget was the result of Conservative-Social Democratic co-operation, and one of the worst budget agreements the working class has suffered under in recent years. It included a drastic attack on the right to unemployment benefit, the exclusion of young workers from unemployment benefit, and the complete abolition of taxes on personal fortunes. Unfortunately, this unpleasant package was not resisted by extra-parliamentary mobilisations.
This time round, the government almost repeated its agreement with the Conservative Party. In late September 1996 the Social Democrats agreed to a new series of austerity measures, including a major tax reform and cuts in several social budgets. Break with tradition
Suddenly, the Conservatives backed out of the negotiations, and sharpened their demands. They warned that they would vote against the budget, unless the government proposed measures acceptable to a majority of members in the parliament. This is something new in Denmark, where normal practice is for the "responsible" opposition to speak against the budget in debate, but then vote for it, rather than call into question the legitimacy of a minority government, like the current Social Democratic administration. According to tradition, if the government cannot get approval for its budget, it must resign immediately.
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The Social Democratic Party has 62 seats, and, with two small coalition partners controls only 75 seats in the 175 parliament. Its ability to rule lies in the fact that there is no majority against it. The Conservative and Liberal parties are to the right of the Governing coalition, while the Socialist Peoples Party and the Red Green Alliance are
By walking out of the negotiations, the Conservatives probably hoped to provoke new elections. Recent opinion polls suggest that the Conservatives and Liberals could command a majority in a new parliament Although they could only do so if they won the co-operation of two small far-right
The Conservatives clearly feel pressure from the right. Support for the Liberals grew rapidly during the 1980s, under their camerafriendly leader Ellemann Jensen (Foreign Minister in the 1982-92 Conservative government). Jensen has attracted younger voters, and captured part of the Conservative electorate in the towns. And when the Conservatives made a pact with the Social Democrats to pass the 1996 budget, they effectively split the right.
The right also got a smell of power when the Social Democrats humiliated themselves by first cancelling the November ceremony at which British writer Salman Rushdie was to receive the European Union's Aristeon Prize for Literature, then backing down under protest from all sides.
### EL FaSciN
Resign, or talk to the far left
With the Liberals and Conservatives preparing to vote against the budget, the Social Democratic government began negotiations with the small Socialist People's Party. These left reformists had spent the last few years out in the cold. Prime Minister Rasmussen was now offering them an influence on Danish politics again.
The other left opposition party, the Red Green Alliance had not voted for the 1996 budget. But in August 1996 it declared that it would back the government, including in the final vote, if five budget demands were met. These included a guarantee of a real job for all unemployed workers before they loose unemployment benefit. (Under the 1996 budget, benefit is cut off after five years.
Within the Alliance, there was growing opposition to this announcement, as a matter of principle (since no-one seriously believed that the government would meet these five demands). "Can we ever vote for a state budget in a capitalist state, and, if so, in what circumstances?" members asked.
In October, the leadership of the Socialist Workers Party (SAP), the Danish section of the Fourth International, which is part of the Alliance, asked "how serious is opposition to the military, if one can vote for their expenses? And what about those young workers whose conditions were attacked by last year's budget...? The state budget is a totality of bourgeois Social Democratic policies and, for that reason, recent
January 1997#284 23
* Denmark announcements by the Alliance may undermine the impression that a credible alternative to the ruling misery exists." Time for real politics
This was the situation when the Red Green Alliance convened its annual conference in late November. If Alliance deputies abstained in the budget vote, the government would survive. The question of how to vote on the budget was no longer just a matter of principle. It had become a question of real politics. Delegates arrived at the conference carrying national newspapers with titles like "Government's future to be decided this weekend" and "Everyone is waiting for the Alliance."
The alternatives discussed were to vote against the budget, or to abstain. Delegates expressed a range of views on what to do, but well-defined currents did not emerge during the conference. The precise content of the final budget proposal was still unclear, and subject to negotiation.
The conference left the final decision to the new National Committee, but unanimously adopted a statement saying "there is no doubt that the Alliance will oppose and vote no to the budget now taking shape. Although the Alliance will vote for partial agreements, we will maintain our opposition to an overall state budget which is substantially a continuation of previous [Social Democrat] budgets passed in agreement with the Conservatives and the Liberals.
"But, if the final vote is a question of survival for the government, the National Committee will convene and decide which way the Alliance will vote. But the Alliance will only consider abstaining... if the budget contains improvements compared to last year." The Alliance Enhedslisten — de rød-grønne (Unity List - the Red-Greens) was formed in 1989 at the initiative of the Left Socialists (VS), the Communist Party (DKP) and the Socialist Workers Party (SAP - the Danish section of the Fourth International).
In 1991 they were joined by the exMaoist Communist Workers Party (KAP).
Since then, the Alliance has developed into an independent organisation, with no special privileges for any affiliated party. Despite its name, no "Green" organisation has ever joined the organisation.
In December 1990 the Alliance stood in national parliamentary elections for the first time, and won 1.7% of the vote, failing to enter parliament (which requires 2% of the
In September 1994, the Alliance won 3.1%, and has six seats in the present
Total membership, in November 1996, 24 International Viewpoint
Once we get a socialist government, things will Let's be different! hope so!
The conference also adopted a revised political programme, which defines the goals of the Alliance in more radical terms (revolution, workers" power, planned economy...) In the section on parliamentary work, the programme states that "the Alliance will... vote against any cut in social programmes. Thus, the Alliance can only vote for an overall state budget which marks a decisive break with bourgeois policies, and does not include any deterioration in conditions." Make-your-mind-up time
In the days and weeks following the Red Green Alliance conference, things moved very quickly. The Conservatives maintained their "No" position, and the government concluded a major agreement with the Socialist Peoples Party. This included a series of small improvements, and dropping all the planned social cuts.
At this point the Alliance parliamentary group suggested to the National Committee that they should abstain in the final vote,
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REASI allowing the budget to pass. If the Alliance deputies voted against the budget, alongside the bourgeois opposition, then the budget would fail, and these "important" concessions would not be realised, they argued.
These include an increase in the number and quality of student places, "green" job programmes, non-hydrocarbon energy programmes, and increased funding for programmes for children in poor conditions. On the other hand, these measures represent spending of about 500 million Danish Krøner, which is only about 0.2% of the total budget.
After debate, the National Committee voted 17:3 in favour of abstention. The three Fourth Internationalists on the National Committee voted with the majority. What now?
The political programme adopted at the November conference committees the Alliance to a decisive break from bourgeois politics. But what exactly does this mean? Can abstaining on the state budget can hardly be seen in this light?
The government had to rely on the votes of the left, and it paid a price, by dropping the most anti-worker elements in the budget. As a result, there is a general impression that severe cutbacks have been avoided, and that some social and ecological gains have been made.
Hopefully, this impression can stimulate more activity by workers, unions and social movements, and encourage them to take action for more demands.
The debate in the Alliance will continue. There will be a general debate on the political line on the state budget in Spring. No-one wants to repeat the situation the Alliance faced with the 1997 budget. *
EL FiCEN
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