Decree-o-matic: The periphery’s permanent state of exception


decree-o-matic chopper 4

The Greek Frankenstein’s monster of a coalition government – stitched together from the torso of the wounded conservative New Democracy and the decomposing, undead remains of centre-left Pasok and ex-eurocommunist Dimar – passed legislation last week raising taxes on ordinary Greeks and corporations and then this week approved another package of moves restructuring state assets for privatisation and expanding the powers of the finance ministry

I’ll not go into details of the problems with the legislation, termed ‘prior actions’, which was demanded by international lenders in return for the latest round of financing due this month. The imposition of suicidal and unjust economic policies in the European periphery is very much more ‘dog bites man’ these days than ‘man bites dog’. I’ll leave it to others to point out the errors.

Instead, what I find significant is that the different pieces of legislation have not been presented as proper bills, but as edicts in order to prevent debate, which would slow down the approval process.

The coalition felt it didn’t have time for the legislation to go through normal procedure as it wanted the bills to be already in the bag before finance minister Yannis Stournaras headed to the Eurogroup meeting (of finance ministers from the eurozone) on Monday, 21 January, where the first of three bail-out tranches worth €18 billion was to be considered and possibly approved.

Opposition parties, both the socialist Syriza party and the Independent Greeks – the anti-memorandum splinter from New Democracy – accused the government of bypassing parliament.

Their criticisms were – how should this be put politely? – let’s say ‘unvarnished’.

“You are introducing a new form of governing,” Syriza parliamentary spokesman Panayiotis Lafazanis said. “Ministers will issue edicts that will abolish parliament’s rights and will not be debated at all. You are responsible for turning a parliamentary democracy into a parliamentary junta.”

“We are observing a situation where parliament has essentially ceased working,” said Notis Marias of the anti-memorandum splinter from New Democracy, the Independent Greeks. “Your attitude is ‘Eurogroup uber alles.”

It seems strange to be talking about legislation by decree in the 21st Century. The words ‘decree’ and ‘edict’ evoke images of the Catholic Church releasing papal bulls, or absolute monarchs issuing proclamations changing the religion of a realm overnight.

The development of modern democracy placed great emphasis on ‘legislative supremacy’ (also known as ‘parliamentary sovereignty’). Whether called a parliament or congress or house, the deliberative assembly normally has exclusive authority to pass, amend or repeal laws, raise or lower taxes, regulate trade, and declare war. Western societies did not opt instead for a model of elected monarchs (athough Poland famously employed wolna elekcja, or royal elections, on occasion until the late 18th century).

Why did we do this? Well, it’s a long story and whole libraries could be and indeed are filled with discussions of theories of governance. But boiled down, the argument is that the executive branch – the body that enforces the law and carries out the day-to-day administration of the state – is the servant of the legislature, in order to ensure a separation of powers, which in turn serves as a sort of inoculation against tyrants.

By distributing power away from the executive, and maintaining the supremacy of the elected chamber, a polity is supposed to be protected against authoritarianism. In those places where there is little or no separation between executive and legislative branches, the different powers of government by definition are held by one person or one small group of people. (This situation, by the way – other than during times of national emergency, or ‘state of exception’ – is the very definition of despotism you will find in any dictionary)

Yet what happened in Greece this past fortnight is far from the first time that governments in the eurozone periphery have turned to the use of decrees to avoid parliamentary scrutiny. Indeed, though it has received little notice, the use of decrees, edicts and similar manoeuvres – a direct challenge to legislative supremacy – has been sharply on the increase in since the advent of the crisis.

Grand Duke Draghi of Frankfurt

Most controversially, the ECB’s humiliating ultimatum letter to Berlusconi in the summer of 2011 that was leaked to Corriere della Serra, the Italian daily, included not only a series of demands for legislation in return for central bank bond purchases, but the detailed timetable bills needed to be passed by and that they be imposed by edict, only later to be approved in a similar up/down fashion to this past fortnight’s Greek decrees. According to the letter, the package of austerity and structural adjustment bills had to be passed “as soon as possible with decree-laws, followed by parliamentary ratification by the end September 2011.”

The bulk of the shock therapy that unelected technocrat prime minister Mario Monti has applied to Italy have been performed by decree – the ‘Save Italy’ emergency decree, which took place days after Super-Mario took power; the ‘Grow Italy’ decree, the ‘Fiscal Simplification’ decree, the ‘Spending Review’ decree, the ‘Sustainable Development’ decree, and so on.

Some of the actions undertaken by decree any progressive could support; others decidedly less so. But whether one supports or opposes a move is immaterial – the method through which they are enacted is undemocratic.

Over in Spain, in May last year, Spain’s Mariano Rajoy used a decree to avoid parliamentary oversight of the decision to use public funds to bail out its drowning banks, offloading written-down assets into separate financial vehicles. Similarly, in February, Rajoy used the decree format to force banks to set aside certain amounts as cash buffers against losses. In March, there was a labour market deregulation decree in March, and in November an anti-tax-fraud decree and another delinking pensions from inflation.

After a woman killed herself when bailiffs tried to throw her out of her home and under pressure from protests, Madrid also passed a decree suspending home evictions for poor families with small children, the disabled and long-term unemployed. This action should certainly be welcomed, and probably did need to be instituted instantly for obvious reasons. But the question still remains, even for these sorts of measures – why is so much legislative activity now being done without parliamentary scrutiny?

By contrast, this past week, US President Barack Obama unveiled his gun control strategy. Alongside a series of legislative proposals, Obama announced 23 executive orders that are enacted immediately. Republican opponents and hyperbole-mongers have attacked the president for bypassing congress and ‘ripping up the constitution‘.

But in reality, every one of his gun control recommendations – criminal background checks for all gun sales, reinstating an assault weapons ban, a 10-round limit on ammunition magazines, outlawing armour-piercing bullets and providing mental health support services in schools – require congressional approval. The executive orders cover such matters as directing the Center for Disease Control to perform research into the causes of gun violence, requiring that federal agencies make relevant data available to the background check system, launching a national dialogue on mental health and starting a a national safe and responsible gun ownership campaign.

These are precisely the sort of relatively trivial moves that do not require parliamentary debate and oversight – the sort of direction from the directors of the executive branch of government to its officers and agents managing their operations or the appointment of senior civil servants. In France, these are called décrets (although the president may not rule by decree except during national emergencies) and in the UK Orders in Council. Not all executive actions need to be put through the legislative sausage factory.

But major policy changes with significant impacts, such as cutting pensions, radical overhaul of labour markets, bank bail-outs and so on certainly should indeed be looked over by parliaments with a fine tooth comb. And when they aren’t, if there is genuinely some sort of emergency requiring immediate executive action, there needs to be a bloody good reason, and it should be explained why this exception is necessary.

(If you want to be technical about this, what we’re talking about here is the distinction between primary legislation – crafted and approved by the legislative branch – and secondary or delegated legislation – laws made by an executive authority under powers transmitted to them by the primary legislation in order to carry it out)

Special powers

Citizens’ ears should prick up every time they read that something is being passed by decree or edict. Nine times out of ten, it is a sure sign that democracy is getting a bit of a hair-cut. An historical wander through the textbook exemplars of the use of decrees are instructive for comparison.

Famously, George W. Bush enacted a whopping 262 executive orders, the preponderance of which were a clear usurpation of congress’s position as the legislative branch. In this way, he blocked funding for stem-cell research, sidestepped the Geneva Conventions protection from torture, and offered impunity to US corporations operating in Iraq.

Those for whom the origins of Russia’s current ‘managed democracy’ remain a mystery could do worse than read up on Boris Yeltsin’s privatisation by decree and ultimate disbanding of parliament and rule by decree in the autumn of 1993. Fantastic sums in public funds were transferred to banks owned by major figures in the Soviet state and the former Communist Party higher ups. These banks then spent the effectively embezzled funds to snap up state industries on the cheap in privatisation auctions they themselves conducted.

From 1972 to 2007, governance of Northern Ireland was carried out under what was known as ‘direct rule’ – in effect rule by decree. While the people Northern Ireland still technically elected members of parliament to the House of Commons, legislation administering the region was made through Orders in Council, a situation opposed by by both nationalists and unionists for its lack of democratic accountability.

Similarly, during the Algerian War of Independence, in 1956, the governor general of French Algeria, Robert Lacoste, abolished the Algerian assembly and ruled by decree to deal with the mounting political violence. Then in 1961, President Charles de Gaulle became the only French president to rule all of France by decree during a national emergency, employing ‘special powers’ he requested from the National Assembly in the wake of an abortive rightist uprising in Algiers. Over the course of five months from April to September of that year, De Gaulle enacted 16 decrees expanding police powers, enlarging the power of the courts, banning publications, dismissing civil servants for ‘encouraging subversion’, and establishing special military courts, amongst other measures.

Now, one of the difficulties in discussing Europe’s democracy-on-a-diet approach to the economic crisis is that when anyone suggests that there has been a hollowing out of democracy, the cry immediately goes up from defenders of the strategy: “Where are the tanks? Where are the gulags? Where is the police state?”

But this is a category error, a conflation of autocracy and totalitarianism, as there can of course be creeping autocracy without totalitarianism. The advance of rule by decree does not signify the imminent appearance of a Duce or Fuhrer but with a blue and yellow flag. Mario Draghi is not Kim Jong-un.

Cindy Skach, professor of comparative government at the University of Oxford and one of the world’s leading experts on constitutional design, has described precisely this sort of legislative atrophying phenomenon as ‘constitutional dictatorship’. It comes from the use of emergency powers over a prolonged period “during which authority is transferred to non-partisan, above-party sources, leading to a loss of substance in the democratic process.”

In her work comparing Weimar Germany and the French Fifth Republic, she offers a warning of what results from this overuse of decree: “Such periods are also characterised by opaque, nonaccountable decision-making in which the democratically elected institutions of the polity, such as the legislature, have lost their controlling capacity, as presidents become increasingly less accountable.”

Such descriptions will of course be familiar to anyone who has followed the steady transfer of fiscal powers out of the hands of democratically elected parliaments – both in EU-IMF programme countries and across the eurozone.

To be clear, I am not saying that Italy, Spain, Greece and other countries are being ruled entirely by decree, but a lot of the new rules do come in the form of decree.

This state of exception is becoming permanent.

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  1. #1 by jon livesey on January 21, 2013 - 6:01 am

    A terrific analysis. Let’s hope we don’t have to look back some day and say “We were warned”.

  2. #2 by Victor on January 22, 2013 - 1:34 am

    Your “exceptions” prove the rule: “democracy” is not perfect, but far, very far from it. Both anarchy and authoritarian periods coexist with democracy.

    Your analysis tries to prove the point that we are in an exceptional period, but the evidence points otherwise. In periods of economic crisis/transformation, normal democratic channels (which are normally used to administrate rather than transform) aren’t used, usually because they are not (or are not seen to be) up to task.

    Of course, if we compare what has gone on since the Great Recession with the post-Great Depression period, it would seem legislative supremacy and/or separation of powers is undermined. But it is rather easy to administer growth or at least stability.

    The post-War consensus in favor of the welfare state also depended on the threat of Communism.

    Now the West wants to compete on a race to the bottom. This requires changes that society will not choose democratically, they have to be imposed or politicians have to be willing to lose elections. Guess which one is likelier?

    Some countries were hit by or dealt with financial and competitiveness crisis before others. Natural advantages (something nobody likes to talk about anymore) also have a crucial role.

    Ceteris paribus, which is a cornerstone of economic analysis and current policy making, is fundamentally flawed when it ignores the role of history and geography in an economy’s competitiveness and governability.

    Now we welcome most of the West into the kind of democratic ingovernability that other developing countries have experienced for decades.

    IMF intervention may be something new for most “Western” European societies, but if something isn’t done, they had better get used to it.

    Capitalist boom-bust cycles make “liberal” democracy inherently unstable. But different countries are hit in different ways depending on their institutional culture and their rung in the economic ladder (what you rightly call being in the periphery).

    The left has failed in articulating an alternative. The lack of historical perspective makes it whine about democracy because of fear of focusing on the real culprit, the flawed capitalist race to the bottom.

    Even those countries that choose kind of a different path are hardly able to escape our finance dominated world. Now even Iceland could soon send back to power the same people. The US elected Republicans hardly 2 years after the collapse of the economy. That is democracy.

    When Franklyn Roosevelt started reforming the American economy he was called an undemocratic autocrat. Democrats thought Bush was an autocrat, now the same happens to Obama with Republicans. Democratic governance didn’t stop the US from having a Civil War.

    In Europe democratic governance also didn’t stop wars. Now at least the “undemocratic” EU has helped maintain peace. Consensus can be democratic or undemocratic, depending on the context and ideology.

    In Europe the British will find whatever comes from Brussels to be undemocratic. Yet the European Commission can suffer a vote of no confidence the same way that national governments. And given that the power of legislative initiative is held by it, that means that effectively the European Parliament can halt policy making if it wants to.

    The core of most parliaments power for several decades now has been the ability to control governments. Most legislation is de facto government legislation. The UK, with executive control of the legislative agenda, is one of the best examples of this.

    Budgetary control is a relative concept. If you decide to participate in international capitalist debt markets, then you don’t really control your budget or have fiscal sovereignty. Just ask Argentina.

    Democracy is a mess. By saying that it is or could be otherwise you do more damage to democracy by inflating expectations in unrealistic ways.

    Let’s stop idealizing the past and start thinking about ways to get out of this crisis. Democracy, like capitalism, has to be saved from its excess.

    Democracy is currently in trouble in some countries because so is capitalism. But the core of neither is really being questioned. That is both good and bad.

    We really need to keep perspective on things. Troika dictates in just the past century would have been followed up by invasions, blockades, etc. In previous centuries they would have led to de jure tutelage, suzerainty or outright annexation.

    The second half of the 20th century was actually an exceptional period of peace, broad prosperity and stability in the West. We can either return to the previous “new normal” or try to build on the rather good institutional and economic legacy of that period.

    The move to dismantle the welfare state is an attempt to reform, however misguided. Whether it is approved by law or decree is secondary. People would suffer (and theoretically benefit in the medium to long term) all the same.

    The real question is why does the left have nothing positive to say. The focus on procedure just proves how hollow the response in substance is.

    The challenge for the left now that the crisis has dissipated in the core countries seems almost insurmountable. But, hey, who foresaw the Arab Spring?

    Having millions of unemployed youth is never a recipe for stability. And “stability” is always relative. A social movement can start in the periphery and spread to the core as fast as the fall of a stock exchange.

  3. #3 by jon livesey on January 22, 2013 - 9:23 pm

    Just so long as they make the trains run on time?

  4. #4 by Andre on January 31, 2013 - 10:36 am

    An intelligent and engaging argument, but rather under-contextualised. It is true that there is a systemic trend towards a Plato’s Republic-style rule by wise men — and this may be to do with the growing specialisation of minds and skills in western societies. That said, should we continue to see parliaments as the quasi-exclusive locus of popular legitimacy, just because they have been for the latter part of the modern era? The fact is, new media configurations, freedom of information legislation, and the consistently expanding body of human rights and equality law are all empowering populations (or ‘electorates’, if you wish) in a way they never were before.

    It seems, in fact, that we are constantly creating new forms of organisation, legitimacy and grassroots governance. This is not to say that parliaments will disappear, of course, but that the role and veneration with which we have traditionally invested them will continue to be adjusted. On the whole, we are arguably gaining far more than we are losing. And rulers are being held to account in a way they may never have been in history.

  5. #5 by Marc on February 2, 2013 - 4:40 pm

    This is what’s happened to national parliaments for years. Increasingly being overrruled by the Eurosoviet Union’s Politburo (comrade Barroso and his fellow members of the EU-nomenklatura) or even by government ministers who use ‘Brussels’ as a convenient path to bypass their own parliaments because those kept refusing to pass the measures they wanted.

    The EU is precisely and deliberately the structure that was designed by politicians to make bypassing national parliaments ‘ever easier’.

    In Weimar terms, we’re in 1931 and the Eurosoviet keeps clinging on, proclaiming bankers to be sacrosancts whilst (via the Euro) having reduced millions to poverty and unemployment.

    And the EU powergrabs will not only not stop, the next years they will increase, all in the name of ‘saving the system’ or against ‘terror’ which in reality means to save plush unelected income-tax exempt jobs and to protect the EU from the ‘terror’ that they believe is democracy/referendums.

    • #6 by Betterworld on February 4, 2013 - 11:56 am

      In Weimar terms we’re in worse sh1t than in 1931. This time around there isn’t a semi-organized army of 10 million anti-fascist soviets ready to give up their lives for our freedom. We also have no possibility of the USA entering the war on the side of the anti-fascists, given their unremitting slide into fascism since 1990.

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