Tag Archives: Christian Wulff

Germany – Honorary pay and post-presidency perks: How to deal with former presidents

Recent news reports that former German president Christian Wulff had taken up the role of authorised representative of Turkish fashion label Yargici have rekindled a ‘smouldering’ debate about the role and entitlements of former presidents in Germany. The flames of this discussion, last hotly conducted following Wullf’s resignation amidst corruption allegations and attempts to suppress related news reports, have been fanned further by criticism of the new offices for former president Joachim Gauck, Wulff’s successor. Although the upcoming general election has meant that the topic received comparatively less attention, it is bound to return in the next years and changes to ex-presidents’ status are likely.

Living German ex-Presidents | image via bundespraesident.de

For a long time, post-political careers of German politicians were not a widely debated issue. Cabinet ministers often remained members of the Bundestag after serving in government and usually retired from politics – and work life – in their 60s and 70s. Chancellors usually left office at a similar age and refrained from controversial activities (the work of ex-Chancellor Gerhard Schröder (1998-2005) as lobbyist for Russian companies is a notable exception). Federal presidents on the other hand were usually already in their mid-sixties or older when taking office and had thus little opportunity to develop a new career after leaving office. This trend is mirrored in a number of other parliamentary republics, although it is not uncommon for younger former office-holders to re-enter politics (e.g. Latvian president Valdis Zatlers founded his own party and entered parliament as an MP after being denied re-election as president).

From the point of taking office, German presidents are entitled to an “honorary pay” of €236,000 p.a. for life, so that – as is commonly argued – former presidents do not need to pursue any other employment upon leaving office. Particularly the resignation of Christian Wulff after less than two years in office and aged only 53 has opened a number questions in this regard – For instance: Is a president entitled to honorary pay if they do not complete their term of office? And who is responsible for deciding about a president’s claim to honorary pay? While Wulff continued to receive his honorary pay after leaving office prematurely and the above questions remain unresolved, politicians agreed on ensuring that at least the ex-presidents’ offices – an important post-presidency perk – were run on a more cost-effective basis. Both Christian Wulff and his successor Joachim Gauck have thus not opened their offices in their former hometowns or pricey parts of Berlin, but in buildings belonging to the Bundestag (although this, too, remains controversial – see below). Furthermore, their number of staff is limited en par with offices for former chancellors.

Since Christian Wulff was cleared of corruption allegations in 2014, the majority of political commentators have quietly accepted the fact that Christian Wulff continues to receive honorary pay – also because he represented Germany at a number of occasions (former presidents frequently step in for their successors or chancellors at state funerals) and kept a relatively low public profile. Wulff, a trained lawyer, also opened a legal practice in his home town of Hanover – a move likewise regarded as largely uncontroversial as he returned to his original profession. Nevertheless, the move to become an authorised representative and thus not merely an advisor but active part of a business has changed perceptions of what might be an acceptable post-office career for a former president. Furthermore, politicians and citizens alike have been irritated by the fact that honorary pay is not reduced as a reflection of addition earnings – entitlements from state pensions on the other hand are counted against any honorary pay after reaching retirement age.

Yet Christian Wulff is not the only former president who has recently been criticised over expenditure. As mentioned above, former presidents are entitled to a fully staffed office upon leaving the office to be able to fulfil the role of ‘elder statesman’. Joachim Gauck left office earlier this year and his office has now been opened in the buildings of the Bundestag. Nevertheless, Gauck incurred charges for installing additional security on his floor (despite the building already being under the same protective measures as other parliamentary buildings) and a personal toilet with security lock for the president (costing €52,000) as well as €35,000 for new furniture. In addition, two of Gaucks members of staff have effectively received promotions and Gauck chief of cabinet in particular now earns more than he did when Gauck was still in office.

The only other living president, Horst Köhler, presents an interesting counter-example to his successors: Although Köhler claims an allowance for his office in an upscale office park in Berlin, he has refrained from claiming any honorary pay since leaving office. However, this is can hardly be an example to follow – as a former director of the International Monetary Fond (IMF), Köhler likely has a private pension that would far exceed a former president’s honorary pay.

Thus overall the question remains on how to deal with former presidents. It is clear that the traditional model predicated on the idea that the presidency is the crowning and final achievement of one’s life is – thanks to the election of younger candidates and longer life expectancy of former presidents – no longer practical. Furthermore, as the additional earnings of active politicians come under greater scrutiny it becomes even more difficult to justify expenditures for former holders of a largely representative office to the public. The next Bundestag would be in an interesting position to regulate on these questions as it is not involved in the next presidential election and parties can thus debate the issue with greater flexibility. However, viable proposals for change are still lacking as the most concrete suggestions stem from the discussions about Christian Wulff and would thus only regulate some very specific aspects of this complicated matter.

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For follow-up reading, you may be interested in my comparison of European presidents’ salaries:
Presidents and Paupers I: How much do Western European presidents earn?
Presidents and Paupers II: How much do Central and East European presidents earn?

 

Who’s in charge when the president is gone? Acting presidents in European republics

The premature termination of a presidential term – be it by impeachment, resignation or death of the incumbent – is generally a rare phenomenon so that the respective regulations belong the constitutional provisions that are applied least often in political practice. Nevertheless, in recent years a number of European republics had to activate these stipulations, often for the first time. This post compares the regulations on acting presidents in European republics and discusses the consequences for the separation of powers and potential for conflict.

Acting German Federal President, Speaker of the Federal Council and Minister-President of Bavaria Horst Seehofer in 2012 | © German Presidential Office

The resignations of German Federal Presidents Horst Köhler in 2010 and Christian Wulff in 2012 presented the first instances in which speakers of the Bundesrat had to take over presidential duties. Similarly, the tragic death of Polish President Lech Kaczyński in 2010 was the first event in post-1989 Poland that required the Sejm Marshal (speaker of the lower house) to temporarily fulfil the role of president. In Romania, the two impeachment attempts against president Traian Basescu in 2007 and 2012 also meant that the speaker of the Senate acted as president while the population was consulted in referenda. On the other hand, when Slovak president Schuster needed to receive specialist treatment in an Austrian hospital in 2000, the speaker of parliament and Prime Minister fulfilled his duties in tandem.

The above examples show that European republics show a great variation in who becomes acting president. In fact, Bulgaria and Switzerland are the only European republics with a functioning vice-presidency (although due to the collegial nature of the Swiss executive its position/relevance differs significantly) [1] and In the remaining countries it is not always obvious who takes over presidential duties in the case of presidential impeachment, resignation or death. The default option is to temporarily devolve the function to a representative of parliament (in all but Bulgaria, Finland and Switzerland representatives of parliament are involved), yet even here differences exist that have consequences for the division of power.

In France, Germany, Italy and Romania the speaker of the second chamber of parliament. As – except for Italy – the government is not responsible to the second chamber this arrangement guarantees a mutual independence of acting president and other institutions. Even though Austria and Poland also have bicameral system, presidential duties here are performed by the speakers of the first chamber and thus by politicians that are more prominent in everyday politics and usually belong to the governing party. In Austria this is partly mitigated by the fact that the speaker and the two deputy speakers perform this role together, yet in Poland the stipulation proved to be controversial – not only because the generally more political role of the Polish Sejm Marshal but also because of the fact that acting president Komorowski was the government’s candidate in the presidential elections. In the Czech Republic, likewise a bicameral system, presidential duties are also fulfilled by the speaker of the first chamber, yet in cooperation with the Prime Minister.

Map_of_EU_presidents away2_

Countries with unicameral systems cannot generally choose a more independent political candidate, yet as the examples of Iceland and Ireland show it is still possible to create less political alternative by pairing them (among others) with the Chairman of the Supreme Court in multi-member committees that jointly fulfil the position of acting president. Estonia shows another way of ensuring independence of the speaker of parliament as acting president in a unicameral system. The constitution foresees that speaker of parliament temporarily gives up their function to act as president and a new speaker is elected for that period to maintain a clear separation of powers.[2] Last, only Finland and Malta place the role of acting president in the hands of the Prime Minister which is even more exceptional when considering the great differences between the two political systems.

The comparison above has shown that variations in who becomes acting president do not vary according to the mode of presidential election or presidential powers and their origin often predate the current political system. An example for this are the regulations in the Czech Republic and Slovakia which both based their regulations on constitutional drafts that still were still designed for the countries’ functioning within a federal Czechoslovakia. Once the break-up was agreed and quick adoption of new constitutions was needed, the presidency was merely added and the actors that previously represented the republic at federation level became the designated acting presidents (Slovakia only introduced a co-role for the speaker of parliament in 1998 as it turned out that the constitution did not transfer enough power to the Prime Minister as acting president to maintain a functioning state after parliament failed to elect a new president).

The question of who is in charge when the president is gone might appear relatively insignificant at first glance given the rarity of early terminations of presidential terms or long-term absence of presidents during their term. Nevertheless, the different stipulations strongly affect the degree to which the presidency can or is likely to still fulfil its function as check-and-balance on other institutions while it is vacant. While this becomes more relevant the longer there is a vacancy in the presidential office, it still changes the balance of power within a political system already in the short term and therefore merits attention. For instance, during the one month that Slovak president Rudolf Schuster spent in hospital in Austria in 2000, Prime Minister Dzurinda and National Council speaker used their position as acting presidents to veto three bills to which Schuster had previously declared his opposition. Only shortly afterwards, the government majority passed the bills again and thus made sure that Schuster could no longer veto the bills or request a review before the constitutional court.

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[1] The Cypriot constitution also institutes a vice-presidency which is reserved for a Turkish Cypriot while the post of president is to be held by a Greek Cypriot. Initially a Turkish Cypriot vice-president served alongside a Greek Cypriot president, yet the vice-presidency has been vacant for about 50-40 years. The start date of the vacancy is difficult to establish – while Turkish Cypriots have not participated in government or parliament since the 1963 crisis, the title of vice-president appears to have been used by Turkish Cypriot leaders until the coup d’état in 1974.
[2] Estonian members of government are also required to give up their place in parliament upon appointment and another MP enters parliament in their place for the time of their appointment.