Hedge Funds, the Deutsche Börse Affair and Predatory Anglo-American Capitalism

Boardroom trouble at Deutsche Börse, the company that operates Germany's main stock market, has recently provoked an important debate about competing capitalist models. Werner Seifert, Deutsche Börse's ousted Chief Executive, was eager to portray himself as the innocent victim of aggressive Anglo-American investors who had bought into his company but failed to understand its traditional operating ethos. In this, he was ably supported by key figures within the ruling Social Democratic Party, who, in order to shore up the party's core support, had increasingly come to blame overseas hedge funds for the development of German corporate governance models which prioritised profits over jobs. I review the SPD's structural reading of the Deutsche Börse affair, whilst comparing it to an alternative interest-based reading. The latter allows me to focus more closely on the issue which, more than any other, led to Seifert's downfall: his refusal to bow to the expressed interests of his own shareholders by pressing ahead, against their wishes, with a hostile bid for the London Stock Exchange. Seifert's eventual removal foreclosed the possibility of an integrated London-Frankfurt stock market and, somewhat ironically given the SPD's response to the affair, as a consequence it also prevented the entry of London's highly capitalised institutional investors into the German market for corporate control. The actions of Deutsche Börse's overseas shareholders might still be seen as evidence of a predatory Anglo-American capitalism. However, their successful removal of Werner Seifert may well have been responsible for temporarily keeping other financial predators at bay.     

Mapping EU agencies as political entrepreneurs

The European Union relies on decentralised agencies to implement important transnational regulations, such as certifying the safety of medicines. However, the authority of these agencies does not have ‘hard’ legal status and crucially depends on disseminating ideas and information effectively: what can be termed ‘political entrepreneurship’. This article provides the first comprehensive analysis of the political entrepreneurship of EU agencies by constructing a conceptual typology of entrepreneurial strategies. Drawing conceptually on transnational public administration, a new database is constructed of the ‘entrepreneurship’ of 33 EU agencies in 2014 based on their media communication activities, face‐to‐face networking in workshops and collaborations, and knowledge dissemination and ‘learning’ exercises. This is mapped against the political salience of agencies in the European Parliament and media. The mapping exercise shows four types of entrepreneurial strategies covering the population of EU agencies: technical functional, insulating, network‐seeking and politicised. The typology is validated through semi‐structured interviews in 11 EU agencies, showing the core characteristics of each type of strategy. The article concludes by arguing that this typology provides an important addition to existing categories of EU agencies based on autonomy and accountability, and advocates a future research strategy examining the interaction between agencies’ entrepreneurial strategies and the expectations and reactions of stakeholder audiences.     

The Birth and Rebirth of the Liberal Democrats

This article tells the story of the Liberal Democrats from the final days of the Liberal/SDP Alliance to the general election of 1992. Drawing on the author's roles as an MP and as chair of the party's communications operations, it examines the factors that contributed to the party's troubled birth in 1988, and gives an insider's view on how the party survived to grow in the years after 1990. Key issues include the branding of the party and the development of its policy of paying for improvements to education through increasing income tax. It also lays stress on the importance of the party's activist base and its central campaigns expertise in not only surviving in local elections, but also in securing key by-election victories.     

Bagehot Smiling: Gordon Brown's ‘New Constitution’ and the Revolution that Did Not Happen

The MPs expenses scandal that erupted in May 2009 has certainly rekindled interest in the next stage of constitutional reform and democratic renewal in Britain. This article examines how Gordon Brown's tenure as Prime Minister has differed from Tony Blair's in relation to the ‘new politics’ narrative. It argues that despite his long‐term personal commitment to major constitutional reforms, the role of crises in recalibrating the political opportunity structure and the manner in which electoral incentives can alter elite attitudes to institutional change that Brown's tenure can be characterised by optimism followed by timidity. Gordon Brown may have flown a few kites in relation to a written constitution, electoral reform, English devolution and the future of the House of Lords but he has left things far too late for a ‘constitutional moment’. Brown may have the political inclination but he lacks the capacity to deliver far‐reaching reform; Cameron is likely to have the capacity but not the inclination.