168-640: The Bulgarian Socialist Party ( BSP ), also known as The Centenarian , is a centre-left , social democratic political party in Bulgaria . The BSP is a member of the Socialist International , Party of European Socialists , and Progressive Alliance . Although founded in 1990 in its modern form, it traces its political heritage back to the founding of the BRSDP in 1891. It is also Bulgaria's largest party by membership numbers. The Centenarian moniker comes from
336-484: A People , the populist party created ahead of the anti-government protests and with the most seats. A third snap election for November 2021, this time also at the presidential level ( 2021 Bulgarian general election ), ensued to solve the crisis. Following the election, Ninova decided to step down again although she will remain the chairman of BSP until the next party congress which will be held in January. BSP agreed to be
504-607: A broad left-wing alliance led by former BSP Chairman Zhan Videnov. Tatyana Doncheva 's Movement 21 also refused to align itself with its former mother party, the BSP, and instead chose to join Stand Up.BG in creating the Stand Up.BG! We are coming! alliance. A faction of those within the internal opposition that still remained in the party formed the ' Socialism of the 21st century platform', which stated that it would fight Ninova's 'usurpation' of
672-655: A country (such as the US) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports. All of this created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend either because they had very high personal savings rates (as high as 40% in China) or because of high oil prices. Ben Bernanke referred to this as
840-506: A degree of public distancing between party and state institutions and instead resigned his membership in the party following his elections. Though the Bulgarian constitution requires the President to resign any leadership positions within political parties, it does not require the officeholder to give up his party membership completely. He instead hand-picked Sergey Stanishev as his successor for
1008-490: A forerunner of the BSP for Bulgaria , it helped form a new government in 1995, headed by BSP leader Zhan Videnov as the prime minister of Bulgaria . Large-scale demonstrations in the cities and a general strike prevented the formation of a new socialist government after its term ended at the end of 1996. The country had entered into a spiral of hyperinflation , the most serious economic and financial crisis in its recent history, after
1176-447: A further collapse, encourage lending, restore faith in the integral commercial paper markets, avoid the risk of a deflationary spiral , and provide banks with enough funds to allow customers to make withdrawals. In effect, the central banks went from being the " lender of last resort " to the "lender of only resort" for a significant portion of the economy. In some cases the Fed was considered
1344-488: A global economic shock, resulting in several bank failures . Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures . Several businesses failed. From its peak in the second quarter of 2007 at $ 61.4 trillion, household wealth in the United States fell $ 11 trillion, to $ 50.4 trillion by
1512-525: A government led by either GERB or DPS. The parties new leadership also made clear that it wished to reconcile with expelled members of BSP, as well as President Radev. One of the first contentious decisions undertaken by the new leadership, was the removal of Kaloyan Metodiev from the Parliamentary Group. Metodiev, a former head of the SDS Youth Wing in the early 2000s, was seen as a close advisor to
1680-479: A housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis. Additional downward pressure on interest rates was created by rising U.S. current account deficit, which peaked along with the housing bubble in 2006. Federal Reserve chairman Ben Bernanke explained how trade deficits required
1848-532: A long debate decided to vote against it, despite internal division about it. Former BSP leader and then-PES head Sergey Stanishev strongly supported the Istanbul Convention. Under Ninova's leadership, BSP additionally shifted to a more nationalist position. The party is the largest in Bulgaria by number of members, having 105,000 members as of 2016, down from 130,000 in 2013, 150,000 in 2012, 210,000 in 2009, 250,000 in 1996, and around 1 million members during
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#17328478485072016-468: A majority of 104 votes. The meeting of the National Council also chose to undo the appointment of Svilenski as head of the parliamentary group, instead choosing to appoint Borislav Gutsanov. In his first official statement, Zafirov denied the fact that a coup had taken place and promised to carry out fair elections for leadership positions within the party. He further confirmed that BSP would not support
2184-494: A more social-liberal worldview under Stanishev, to a socially conservative strain of socialism under Ninova. Like most Party of European Socialists (PES) member parties, the BSP has a pro-European stance, although it has taken some Eurosceptic positions and called for an end to sanctions against Russia . Some news outlets, such as Novinite , The Wall Street Journal , and The Washington Post , have described its orientation as soft Russophilia . In recent times under
2352-533: A part of the Petkov Government , together with PP , ITN and DB , receiving the ministries of social care, healthcare, agriculture and economy, with Chairwoman Korneliya Ninova also receiving the position of Deputy Prime Minister . During the January Congress, Ninova's resignation was rejected, meaning that Ninova continued on as Chairwoman of the BSP, until the end of her mandate in 2024. Founded as
2520-571: A period of Pasokification in which social democratic parties saw large declines during the 2010s, largely being replaced by far-left and right-wing populist parties. The centre-left's stance on immigration in Europe was one of multiculturalism, further pushing working class voters from the centre-left to the far-right. In some cases, centre-left and centre-right politics in these countries became less distinct as political cleavages shifted toward populist versus traditional politics. The Arab Spring in
2688-426: A post in which she clarified that together with her resignation she had tendered the resignation of the entire Executive Commission of the party and called on the National Council to not engage in revanchism, confirming that she herself would not be present at the meeting of the National Council. Following the meeting of the National Council, it was announced that MP Atanas Zafirov was elected as acting Chairman, with
2856-562: A prominent form of centre-left politics, beginning with the Australian governments of Bob Hawke and Paul Keating in the 1980s and 1990s. Similar movements developed elsewhere, including in Germany and New Zealand. Centre-left parties in Latin America also shifted from social democracy to social liberalism in a pragmatic attempt to reach voters. The most prominent adoption of Third Way politics
3024-413: A promise to "consolidate and modernise" the party, as well as "protect its socialist and social democratic ideals", adding that the party's foremost responsibility was "the rehabilitation of the social state ". However the unpopularity of the government led to a major decrease in support for the BSP, due to its association with the pro-Turkish Movement for Rights and Freedoms and nationalist Attack . In
3192-545: A really bad economy. In other words, the borrowers did not cause the loans to go bad-it was the economy. Between 1998 and 2006, the price of the typical American house increased by 124%. During the 1980s and 1990s, the national median home price ranged from 2.9 to 3.1 times median household income. By contrast, this ratio increased to 4.0 in 2004, and 4.6 in 2006. This housing bubble resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by
3360-465: A reformist alternative to the revolutionary left, arguing that societal improvements within capitalist democracy would better serve the working class. This philosophy became widely popular among the European left after World War I, which had convinced many contemporary leftists that national identity was more important to the working class than class solidarity , which would render Marxism unviable. This
3528-454: A school of thought within British and American centre-left politics in the mid-19th century. Early progressive thought developed from modernism and humanism , manifesting as calls for reform. It developed as a political movement in the late-19th and early-20th centuries as it was adopted by social liberal and social democratic parties. Unlike later social democratic movements, social democracy in
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#17328478485073696-404: A significant increase in subprime lending . Subprime had not become less risky; Wall Street just accepted this higher risk. Due to competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers. In the view of some analysts,
3864-489: A single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid
4032-457: A vast web of derivatives linked to those MBS, collapsed in value . Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and a subsequent international banking crisis . The prerequisites for the crisis were complex. During the 1990s, the U.S. Congress had passed legislation intended to expand affordable housing through looser financing. In 1999, parts of
4200-697: Is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. In the table, the names of emerging and developing economies are shown in boldface type, while the names of developed economies are in Roman (regular) type. The twenty largest economies contributing to global GDP (PPP) growth (2007–2017) The expansion of central bank lending in response to
4368-727: Is not supported by the centre-left in the 21st century. The modern centre-left distinguishes between just and unjust capitalism, advocating for welfare state policies to create what it considers to be just capitalism. Through the late 20th and early 21st centuries, the centre-left has been more likely to benefit electorally during periods of economic growth and suffer electorally in economic downturn. The core objective underlying centre-left economic policies, democratic capitalism , has largely been achieved within many economies, with further policies seeking to merely reform or improve upon this system. These may include measures to reduce poverty or to support lower-wage workers. One common dispute within
4536-705: Is the balance between egalitarianism and pragmatism. The centre-left often faces pressures from working class voters to restrict immigration to prevent competition over jobs and public services. Other centre-left policies can also be negatively impacted by immigration, as a large increase in low-skilled workers can raise concerns about the increased price of public services, prompting spending cuts and roll-backs of centre-left welfare policies. Though positions on environmentalism are not consistent across centre-left parties, they are more likely to support environmentalist policies than centre-right parties. Centre-left parties are popularly associated with environmental policies in
4704-450: Is typically associated with the centre-left ideologies of social liberalism and social democracy, though communist and centrist ideologies have sometimes been involved in progressive politics. There is great divergence within the progressive movement, with disagreement in what reforms should be attempted and how they can be implemented, though redistributive policies are a common theme within progressivism. Progressivism first developed in
4872-425: Is typically considered radical in nature and distinct from centre-left ideologies. The Third Way is a variation of social democratic politics that gained prominence in the 1990s after the decline of traditional social democracy. It advocates reform of the social democratic model to emphasize equal opportunity over equality of outcome . To accomplish this, it supports heavy deregulation and privatization for
5040-480: The 2014 Bulgarian parliamentary election the party obtained its worst result on record by that point. Mikov accepted responsibility for the result and chose to go into opposition. He nevertheless ran for re-election as Chairman of the Socialist Party, but lost to Korneliya Ninova, thus becoming the first incumbent socialist chairman to lose his bid for re-election. Ninova then became the first woman to be elected as
5208-572: The Digital Revolution altered the objectives and demographics of the centre-left, as the working class has been largely subsumed by the middle class in developed nations due to increased living standards and the establishment of a knowledge economy . Of those in service industry careers, class is not a unifying or significant aspect of personal identity. In particular, this shift has caused People's Parties based on mass mobilization to be less viable. These rapid developments in society during
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5376-575: The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed, overhauling financial regulations. It was opposed by many Republicans , and it was weakened by the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. The Basel III capital and liquidity standards were also adopted by countries around the world. The recession was a significant factor in the 2010s European debt crisis . The crisis sparked
5544-526: The Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 11 attacks , as well as to combat a perceived risk of deflation . As early as 2002, it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create
5712-604: The Glass–Steagall legislation (passed in 1933) were repealed , permitting institutions to mix low-risk operations, such as commercial banking and insurance , with higher-risk operations such as investment banking and proprietary trading . As the Federal Reserve ("Fed") lowered the federal funds rate from 2000 to 2003, institutions increasingly targeted low-income homebuyers, largely belonging to racial minorities , with high-risk loans; this development went unattended by regulators. As interest rates rose from 2004 to 2006,
5880-659: The Great Depression . This matters for credit decisions. A homeowner with equity in her home is very unlikely to default on a car loan or credit card debt. They will draw on this equity rather than lose their car and/or have a default placed on their credit record. On the other hand, a homeowner who has no equity is a serious default risk. In the case of businesses, their creditworthiness depends on their future profits. Profit prospects look much worse in November 2008 than they did in November 2007 ... While many banks are obviously at
6048-673: The Great Recession , which, at the time, was the most severe global recession since the Great Depression. It was also followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 2008–2011 Icelandic financial crisis , which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history. It
6216-461: The Middle East and North Africa supported ideals often associated with social democracy and the centre-left. Financial crisis of 2007%E2%80%932008 The 2007–2008 financial crisis , or the global financial crisis ( GFC ), was the most severe worldwide economic crisis since the 1929 Wall Street crash that began the Great Depression . Causes of the crisis included predatory lending in
6384-723: The Second Republic and the Second Empire was commonly associated with the Moderate Republicans . Thiers restored the centre-left to prominence in the Third Republic , where it was led by the liberal republican Opportunist faction. Elsewhere in Europe, centre-left movements appeared from the 1860s, mainly in Spain and Italy . In Italy, the centre-left was born as coalition between the liberal Camillo Benso, Count of Cavour and
6552-566: The Treasury Department to purchase troubled assets and bank stocks. The Fed began a program of quantitative easing by buying treasury bonds and other assets, such as MBS, and the February 2009 American Recovery and Reinvestment Act , signed by newly elected President Barack Obama , included a range of measures intended to preserve existing jobs and create new ones. Combined, the initiatives, coupled with actions taken in other countries, ended
6720-595: The United Nations considered the New International Economic Order plan that would facilitate social democratic governments in developing nations. Centre-left politics were historically unpopular in Latin America, and left-wing candidates were kept out of power through both right-wing dictatorships and through conservative victories in fair elections. In the mid-20th century, centre-left politics supported state-led development and industrialization in
6888-545: The United States House Committee on Financial Services held a hearing, at the urging of the administration, to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of
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7056-523: The centrist and social-liberal parties National Movement Simeon II and the Movement for Rights and Freedoms (DPS), respectively. In the 2006 Bulgarian presidential election , Parvanov was re-elected in a landslide, becoming the first Bulgarian president to do so in direct elections. In 2007, Bulgaria joined the European Union . The governing BSP-led coalition lost millions of euros of financial aid in
7224-498: The mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies . In effect, Wall Street connected this pool of money to the mortgage market in the US, with enormous fees accruing to those throughout the mortgage supply chain , from the mortgage broker selling the loans to small banks that funded the brokers and the large investment banks behind them. By approximately 2003,
7392-532: The pink tide . In the 21st century, centre-left politics are challenged by the developments of the Digital Revolution , the subsumption of the lower class into the middle class in developed nations, and an increase in support for populism . The ideologies of the centre-left include social democracy , social liberalism , progressivism , and green politics . Centre-left politics often incorporate elements of libertarianism and occasionally favour limited state intervention. As with all political alignments,
7560-462: The shock therapy and privatization policies, also followed to various degrees by other post-Communist countries. In the 2001 Bulgarian presidential election , party chairman Georgi Parvanov was elected the president of Bulgaria on the second round, defeating on the second ballot incumbent candidate Petar Stoyanov from the Union of Democratic Forces (SDS). Parvanov resigned as party chairman and
7728-403: The "buyer of last resort". During the fourth quarter of 2008, these central banks purchased US$ 2.5 (~$ 3.47 trillion in 2023) trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action in world history. Following a model initiated by the 2008 United Kingdom bank rescue package ,
7896-669: The 1970s. It was initially developed in Australia and New Zealand, and it first gained influence in Germany as a response to the Cold War and environmental issues . The presence of green politics in national government is mostly limited to Western Europe, Australia, and New Zealand, though green political parties briefly held influence during the postcommunist period of Eastern Europe. Green political parties have been most successful in Belgium, Finland, France, and Germany, where they integrated into
8064-512: The 19th century held socialist society as an eventual goal. The first social democratic party was established in Germany in 1863. Social democracy had developed as a major political movement in Europe by the early 20th century as a response to the strength of capitalism. Challenging the idea that capitalism was nearing an implosion , reformist socialists such as Eduard Bernstein rejected Marxist ideas of historical materialism and class conflict , and social democrats established themselves as
8232-722: The 2008 financial crisis, consumer regulators in America have more closely supervised sellers of credit cards and home mortgages in order to deter anticompetitive practices that led to the crisis. At least two major reports on the causes of the crisis were produced by the U.S. Congress: the Financial Crisis Inquiry Commission report, released January 2011, and a report by the United States Senate Homeland Security Permanent Subcommittee on Investigations entitled Wall Street and
8400-566: The BSP in April 1990. The party formed a government after the 1990 Bulgarian Constitutional Assembly election but was forced to resign after a general strike that December. A non-partisan government led by Dimitar Iliev Popov took over until the 1991 Bulgarian parliamentary election later in October. In the aftermath, the party was confined to opposition. As part of the Democratic Left coalition,
8568-485: The BSP to form a government in the aftermath of an inconclusive July 2021 Bulgarian parliamentary election , the political crisis continued, as no government without the participation of Borissov could be formed, despite an anti-GERB majority. In addition, Korneliya Ninova , the party leader since 2016, has faced internal struggle, as the party has not been in government since 2013; the BSP has hesitated, depending on public opinion, between backing and rejecting There Is Such
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#17328478485078736-790: The BSP's support for a government led by We Continue the Change , the new pro-Radev party that had won the November election . In late November 2021, BSP agreed to enter the Petkov Government . In August 2023, BSP leader Korneliya Ninova highlighted her party's role in amending Bulgaria's Protection Against Domestic Violence Act, asserting that the changes uphold the Constitution. The revised "intimate relationship" definition specifies male and female, extending protection to relationships lasting over 60 days. The amendment, adopted during an extraordinary parliamentary session, sparked debate on gender inclusivity and
8904-519: The CRA. They contend that there were two, connected causes to the crisis: the relaxation of underwriting standards in 1995 and the ultra-low interest rates initiated by the Federal Reserve after the terrorist attack on September 11, 2001. Both causes had to be in place before the crisis could take place. Critics also point out that publicly announced CRA loan commitments were massive, totaling $ 4.5 trillion in
9072-480: The Financial Crisis: Anatomy of a Financial Collapse , released April 2011. In total, 47 bankers served jail time as a result of the crisis, over half of which were from Iceland , where the crisis was the most severe and led to the collapse of all three major Icelandic banks. In April 2012, Geir Haarde of Iceland became the only politician to be convicted as a result of the crisis. Only one banker in
9240-524: The Great Depression and World War II . A post-war consensus formed among policymakers in Western Europe that rejected both classical liberalism and democratic socialism in favour of social democratic ideals. With the end of fascism, countries in Western Europe adopted social democracy and liberal democracy. Social democracy was widely adopted and implemented in much of Europe, both by centre-left and by traditionally centre-right parties. Social liberalism
9408-483: The LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis, nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending. To other analysts the delay between CRA rule changes in 1995 and the explosion of subprime lending is not surprising, and does not exonerate
9576-589: The SEC's December 2011 securities fraud case against six former executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $ 2 trillion. In the early and mid-2000s, the Bush administration called numerous times for investigations into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003,
9744-469: The U.S. housing market, were on the verge of collapse; the Housing and Economic Recovery Act enabled the government to take over and cover their combined $ 1.6 trillion debt on September 7. In response to the growing crisis, governments around the world deployed massive bail-outs of financial institutions and other monetary and fiscal policies to prevent a collapse of the global financial system . After
9912-545: The U.S. to borrow money from abroad, in the process bidding up bond prices and lowering interest rates. Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $ 650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that
10080-881: The United Kingdom and the United States during the 19th century. Green politics is an ideological movement that advocates a political focus on ecology and nonviolence . It challenges modern industrialisation and institutions through a lens of social justice while rejecting traditional political philosophy and organization. Definitions of the scope of green politics may vary; it may be limited to explicitly environmentalist parties, or it may broadly cover political movements descended from New Left or left-libertarian ideas. Besides environmentalism, green politics often includes support for disarmament , ending nuclear power , decentralized democracy, feminism , and immigration . Green politics developed from various left-wing ideologies, including social democracy and Marxism, in
10248-469: The United Kingdom in the mid-20th century, where it took the form of new liberalism . The identification of centre-left ideologies as "liberal" is most common to the United States. Liberalism is less common in regions such as Africa and Asia, where there is no individualist or liberal democratic tradition. Progressivism is the support of continuous social reform to improve society gradually , opposing revolutionary or conservative politics. It
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#173284784850710416-409: The United States did not have wealth declines at all during the crisis because they generally did not own financial investments whose value can fluctuate. The Federal Reserve surveyed 4,000 households between 2007 and 2009, and found that the total wealth of 63% of all Americans declined in that period and 77% of the richest families had a decrease in total wealth, while only 50% of those on the bottom of
10584-423: The United States served jail time as a result of the crisis, Kareem Serageldin , a banker at Credit Suisse who was sentenced to 30 months in jail and returned $ 24.6 million in compensation for manipulating bond prices to hide $ 1 billion of losses. No individuals in the United Kingdom were convicted as a result of the crisis. Goldman Sachs paid $ 550 million to settle fraud charges after allegedly anticipating
10752-534: The annual rally of the Bulgarian Socialist Party at Buzludzha, where the formation of such a left-wing alliance was announced. Ninova, for her part, called for a boycott of the rally organised by the official leadership, and carried out her own event a few days later. Centre-left Centre-left politics is the range of left-wing political ideologies that lean closer to the political centre and broadly conform with progressivism . Ideologies of
10920-504: The bailout to Fannie Mae and Freddie Mac exceeds $ 300 billion (c. $ 401 billion in 2023 ) (calculated by adding the fair value deficits of the entities to the direct bailout funds at the time). Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles and the global nature of the crisis undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA, or predatory lending were primary causes of
11088-527: The bailouts, such as in the case of the AIG bonus payments controversy , leading to the development of a variety of "decision making frameworks", to help balance competing policy interests during times of financial crisis. Alistair Darling , the U.K.'s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of "a breakdown of law and order" the day that Royal Bank of Scotland
11256-474: The bankruptcy of Lehman Brothers , the fourth largest U.S. investment bank, on September 15, the next day the Fed bailed out the American International Group (the largest U.S. insurance company), and on September 25 the government seized Washington Mutual (the largest savings and loan firm ). On October 3, Congress passed the $ 800 billion Emergency Economic Stabilization Act , which authorized
11424-467: The blame for the economic crises, and support for the centre-left declined in favour of conservative neoliberalism . At the same time, the end of several right-wing dictatorships in Southern Europe prompted support for centre-left politics among these countries in the 1970s. A decline in the relevance of trade unions , historically a prominent voter group for social democratic parties, contributed to
11592-726: The brink, consumers and businesses would be facing a much harder time getting credit right now even if the financial system were rock solid. The problem with the economy is the loss of close to $ 6 trillion in housing wealth and an even larger amount of stock wealth. ... the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity
11760-690: The bubble burst, Australian economist John Quiggin wrote, "And, unlike the Great Depression, this crisis was entirely the product of financial markets. There was nothing like the postwar turmoil of the 1920s, the struggles over gold convertibility and reparations, or the Smoot-Hawley tariff , all of which have shared the blame for the Great Depression." Instead, Quiggin lays the blame for the 2008 near-meltdown on financial markets, on political decisions to lightly regulate them, and on rating agencies which had self-interested incentives to give good ratings. Lower interest rates encouraged borrowing. From 2000 to 2003,
11928-449: The burden of welfare from the state to the family. Centre-left politics seeks equal opportunity in society. Centre-left groups are more likely to prioritize issues of long-term or abstract importance than other ideological groups. These include environmentalism, the arts, science, social equality , and foreign aid . Advocates of centre-left politics typically support laws and government programs to support marginalized groups such as
12096-525: The centre-left in Western countries. Promotion of general welfare, supporting members of the family, and the ideal of the Harmonious Society all have implications for centre-left politics. The welfare state of East Asian countries such as Japan, Singapore, South Korea, and Taiwan are sometimes described as Confucian. These welfare systems have been influenced by Confucian familialism , which shifts some of
12264-566: The centre-left include social democracy , social liberalism , and green politics . Ideas commonly supported by the centre-left include welfare capitalism , social justice , liberal internationalism , and multiculturalism . Economically, the centre-left supports a mixed economy in a democratic capitalist system, often including economic interventionism , progressive taxation , and the right to unionize . Centre-left politics are contrasted with far-left politics that reject capitalism or advocate revolution . The centre-left developed with
12432-614: The centre-left is the extent to which centre-left parties should reform markets versus regulating pre-existing markets. Centre-left parties in Europe and the United States have supported corporate governance reform to protect the investments of shareholders . The economies of Nordic countries such as Denmark and Sweden are often upheld by proponents of centre-left economic policies as successful applications of these policies. These economies heavily emphasize international trade as well as collaboration between government, industry, and labour. In post-war Europe, West Germany established
12600-511: The centre-left supported the Plan De Man . During the Great Depression in the 1930s, social democracy became a viable alternative to other left-wing ideologies, and state intervention saw popular support throughout the western world. It was also seen as a potential means to counteract rising far-right movements that were developing in Europe. The centre-left was particularly strong in Sweden, which
12768-560: The centre-right, implemented this foreign policy in Europe during the Cold War, but it has become less prominent due to the rise of anti-globalist far-right parties. The immigration policies of centre-left groups vary depending on the political circumstances of a given country, and they may seek to greatly expand or greatly restrict immigration. In principle, centre-left parties generally believe in multiculturalism and support high immigration. The key issue of centre-left immigration policy
12936-496: The committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some, such as Wallison, believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $ 467 billion of mortgage lending
13104-537: The cost of mortgages rose and the demand for housing fell, causing property values to decline. In early 2007, as more U.S. mortgage holders began defaulting on their repayments, subprime lenders went bankrupt, culminating in April with the bankruptcy of New Century Financial . As demand and prices continued to fall, the contagion spread to worldwide credit markets by August, and central banks began injecting liquidity . By July 2008, Fannie Mae and Freddie Mac , companies which together owned or guaranteed half of
13272-403: The crisis and selling toxic investments to its clients. With fewer resources to risk in creative destruction, the number of patent applications was flat, compared to exponential increases in patent application in prior years. Typical American families did not fare well, nor did the "wealthy-but-not-wealthiest" families just beneath the pyramid's top. However, half of the poorest families in
13440-446: The crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reported: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects." Denice A. Gierach, a real estate attorney and CPA, wrote: ... most of the commercial real estate loans were good loans destroyed by
13608-437: The crisis was not only confined to the Federal Reserve 's provision of aid to individual financial institutions. The Federal Reserve has also conducted a number of innovative lending programs with the goal of improving liquidity and strengthening different financial institutions and markets, such as Freddie Mac and Fannie Mae . In this case, the major problem among the market is the lack of free cash reserves and flows to secure
13776-571: The crisis. As part of national fiscal policy response to the Great Recession , governments and central banks, including the Federal Reserve , the European Central Bank and the Bank of England , provided then-unprecedented trillions of dollars in bailouts and stimulus , including expansive fiscal policy and monetary policy to offset the decline in consumption and lending capacity, avoid
13944-509: The crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Countering Krugman, Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than
14112-433: The defection of the party's leftmost wing, the 'Marxist platform'. Having decisively lost in the 2009 election , he was successful in managing to form a government after the 2013 election , however his approach backfired, as it required the parliamentary support of the pro-Turkish Movement for Rights and Freedoms and nationalist Attack , both of which proved incredibly controversial. This led to protests , culminating in
14280-409: The dominant ideology in Western Europe during the post–World War II economic expansion and it spread to Africa after decolonization . Centre-left economics declined in popularity following the 1973–1975 recession and was replaced by neoliberalism . In the 1990s, Third Way politics emerged as a centrist variant of social democracy in Europe, and centre-left politics spread to Latin America during
14448-451: The elderly, the handicapped, and the unemployed. Measures to this effect include financial assistance and anti-discrimination laws . Liberal internationalism is associated with the centre-left through its idealism , constructivism , and progressivism. Liberal internationalists seek cooperation between nations, often including support for common security and arms control between nations to facilitate peace. The centre-left, along with
14616-577: The end of the decolonization period, which had been dominated by far-left politics. Most post-colonial African political parties adopted some form of socialism or social democracy, though social democratic policies have seen limited success due to the unstable nature of democracy in Africa. By the beginning of the 21st century, the centre-left had almost entirely overtaken further left groups in politics globally, with other forms of left-wing politics seeing little support in democratic nations. Globalization and
14784-414: The end of the first quarter of 2009, resulting in a decline in consumption, then a decline in business investment. In the fourth quarter of 2008, the quarter-over-quarter decline in real GDP in the U.S. was 8.4%. The U.S. unemployment rate peaked at 11.0% in October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since
14952-600: The end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs . By March 2011, the FDIC had paid out $ 9 billion (c. $ 12 billion in 2023 ) to cover losses on bad loans at 165 failed financial institutions. The Congressional Budget Office estimated, in June 2011, that
15120-477: The entire people and the common good while rejecting the Marxist position of aligning specifically with the working class. Liberty under social democracy is defined as a collective concept based in equality rather than an individualist concept. Democratization , the welfare state , public education , and Keynesian economics are all major components of social democratic politics. Social democracy has influenced
15288-513: The exact boundaries of centre-left versus far-left or centrist politics are not clearly defined and can vary depending on context. Centre-left ideologies are common in stable political systems, which typically allow for political debate with an ideological centre. Social democracy is a reformist offshoot of socialism that supports the modification of capitalist economies rather than their total abolition. It seeks to regulate capitalism to protect social equality , advocating reforms that benefit
15456-705: The fact that the BSP is recognized as the successor of the Bulgarian Social Democratic Party , which was founded on 2 August 1891 on Buzludzha peak by Dimitar Blagoev , designated in 1903 as the Bulgarian Social Democratic Workers' Party (Narrow Socialists) , and later as the Bulgarian Communist Party . After the political changes brought by the Revolutions of 1989 , it abandoned Marxism–Leninism and refounded itself as
15624-473: The federal funds rate to drop below where it was supposed to be. However, in October 2008, the Federal Reserve was granted the power to provide banks with interest payments on their surplus reserves. This created a motivation for banks to retain their reserves instead of disbursing them, so reducing the need for the Federal Reserve to hedge its increased lending by decreases in alternative assets. Money market funds also went through runs when people lost faith in
15792-426: The financial system and got banks to start lending again, both to each other and to people. Many homeowners who were trying to keep their homes from going into default got housing credits. A package of policies was passed that let borrowers refinance their loans even though the value of their homes was less than what they still owed on their mortgages . While the causes of the bubble and subsequent crash are disputed,
15960-592: The focus on free markets. Labour-government relations and the right to unionize have been less prominent ideas in East Asia. Centre-left politics often involve transfer payment systems, such as welfare and early childhood education , with the goal of creating higher employment while avoiding a welfare trap . Closely associated with this is the implementation of a progressive tax , in which higher earnings are taxed at higher rates. Some early centre-left groups supported gradual reform toward socialism, but this position
16128-422: The form of subprime mortgages to low-income homebuyers and a resulting housing bubble , excessive risk-taking by global financial institutions , and lack of regulatory oversight, which culminated in a " perfect storm " that triggered the Great Recession , which lasted from late 2007 to mid-2009. The financial crisis began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate , as well as
16296-457: The government began collecting the data in 1964. The economic crisis started in the U.S. but spread to the rest of the world. U.S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 and the rest of the world depended on the U.S. consumer as a source of demand. Toxic securities were owned by corporate and institutional investors globally. Derivatives such as credit default swaps also increased
16464-506: The governments of European nations and the United States guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $ 1.5 trillion newly issued preferred stock in major banks. The Federal Reserve created then-significant amounts of new currency as a method to combat the liquidity trap . Bailouts came in the form of trillions of dollars of loans, asset purchases, guarantees, and direct spending. Significant controversy accompanied
16632-421: The higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, approximately 9% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%. After
16800-413: The idea that the upper class seeks to harm or exploit members of society, instead arguing that these are unintentional effects of laissez-faire economics. Left liberalism supports liberal capitalism and a mixed economy , which have been adopted by virtually all liberal nations. Political pluralism and strong social institutions are prioritized by liberalism. Social liberalism was developed in
16968-441: The ideology lost influence in other countries during the 1970s. Social democracy also became a popular ideology in many African governments after the decolonisation of Africa . Social liberalism, or left liberalism, overlaps significantly with social democracy. This form of liberalism argues in favour of capitalism and the benefits it provides for society, but it also advocates regulations to reduce wealth inequality . It rejects
17136-672: The inclusion of previously excluded groups in society through citizenship and its associated rights . Income inequality also became a major focus, and centre-left parties in the region promote redistributive policy . Liberalism in Latin America has historically been conservative and oligarchic rather than a centre-left liberalism of progressivism or egalitarianism. Several centre-left parties supported reforms toward economic liberalism in line with those supported by their right-wing counterparts, in some cases leading to backlash that saw incumbent centre-left leaders replaced by far-left populists. Ideological diversity developed in Africa after
17304-635: The late period of the People's Republic of Bulgaria . In 2020, it had 80,236 members. During the chairmanship of Zhan Videnov , the party followed the customary line for socialist parties – it rejected the large-scale privatization efforts of the SDS and instead moved toward a "mass" or "social" privatization campaign, which was intended to allow working and middle-class individuals ("the masses") to obtain stocks in various enterprises earmarked for privatization, as opposed to those shares only being sold to private investors on
17472-502: The leadership of Korneliya Ninova and unlike the majority of PES parties, the BSP has been described as more conservative on social issues, and like European Union politics it is more divided, with some leaders, such as Ninova, opposing same-sex marriage in Bulgaria . Many party leaders opposed the Istanbul Convention because they were against educating children about sexuality if it also meant same-sex relationships , and after
17640-456: The legal successor to the Bulgarian Communist Party , the BSP describes itself as a democratic socialist party, espousing socialist policies and values, while supporting a social market economy . It has also been described as a populist , and social-democratic party. The party's policies have oscillated during its existence from a customary understanding of socialism during the Videnov era, to
17808-521: The liberal-nationalist Movement Party . The centre-left was Orléanist , but supported a liberal interpretation of the Charter of 1830 , more power to the Parliament , manhood suffrage and support to rising European nationalisms . Thiers served as Prime Minister for King Louis Philippe I twice (in 1836 and 1840), but he then lost the king's favour, and the centre-left rapidly fell. The centre-left during
17976-449: The limited success of centre-left politics in the 1980s. Furthermore, centre-left policies faced new challenges that necessitated a reconsideration of the welfare state, including population ageing that threatened pension programs and women in the workforce that heavily altered the job market . Green political parties first became prominent in the 1980s when they became influential in European politics. Third Way politics developed as
18144-578: The linkage between large financial institutions. The de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the solvency crisis and caused a decrease in international trade. Reductions in the growth rates of developing countries were due to falls in trade, commodity prices, investment and remittances sent from migrant workers (example: Armenia ). States with fragile political systems feared that investors from Western states would withdraw their money because of
18312-489: The loans. The Federal Reserve took a number of steps to deal with worries about liquidity in the financial markets. One of these steps was a credit line for major traders, who act as the Fed's partners in open market activities. Also, loan programs were set up to make the money market mutual funds and commercial paper market more flexible. Also, the Term Asset-Backed Securities Loan Facility (TALF)
18480-428: The losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans—generally with low or no downpayments. Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy
18648-626: The majority report of the Financial Crisis Inquiry Commission, conservative American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by the United States Department of Housing and Urban Development (HUD) in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Based upon information in
18816-590: The market. To keep it from getting worse, the Fed said it would give money to mutual fund companies. Also, Department of Treasury said that it would briefly cover the assets of the fund. Both of these things helped get the fund market back to normal, which helped the commercial paper market, which most businesses use to run. The FDIC also did a number of things, like raise the insurance cap from $ 100,000 to $ 250,000, to boost customer trust. They engaged in Quantitative Easing , which added more than $ 4 trillion to
18984-615: The minds of voters, which earns them support in good economic conditions but loses them support in poor economic conditions. Environmentalism is a major component of green politics. Centre-left groups generally support a mixed economy with moderate economic interventionism . Keynesian economics has historically seen support among the centre-left. This is an interventionist economic philosophy that emphasizes income rather than pricing. These ideas have since declined in popularity in favour of balanced budgets and low government spending. Closely related to centre-left politics are concepts of
19152-437: The national party system. In addition to the most common centre-left ideologies, other ideologies are sometimes described as centre-left or have centre-left variants. Democratic socialism supports the abolition of capitalism in favour of socialism, though it opposes the creation of a communist state . It was historically seen as a centre-left position, and may sometimes be described as such, but modern democratic socialism
19320-576: The parliament support of the BSP and the DPS. The appointment of the controversial media mogul Delyan Peevski as head of the state security agency DANS sparked large-scale protests on 14 June. Protests against the Oresharski cabinet continued until the government resigned in July 2014. In the 2017 Bulgarian parliamentary election , the BSP made big gains but not enough to govern, as GERB made smaller gains as well, and
19488-571: The parties former leader, Korneliya Ninova. Therefore, the vote to remove him created a division within the parliamentary group between the old and new leadership. On 29 June, the parties control commission made a number of decisions which similarly seemed to attack the old leadership. For one, the Control Commission officially decided that Korneliya Ninova could not contest the upcoming Chairperson elections, as she had already served two terms in that capacity. The Control Commission further repealed
19656-498: The party and work to 'restore the public image of socialism as the path to a more just and secure society'. According to this internal platform, the party under Ninova had become a leaderist power broker party, separated from its 150-year history. Due to these and other reasons, the BSP obtained poor results during three consecutive snap parliamentary elections held in 2021, with the party obtaining its worst electoral result in its history. Due to this bad electoral performance, Ninova
19824-482: The party for "damaging its prestige", which he condemned as an authoritarian decision by the party's authorities. He then became the first former chairman to found his own separate party – the Alternative for Bulgarian Revival . Sergey Stanishev was noted in his policy shift away from the traditional understanding of the left, and toward a more pro-Western, pro-European and social-liberal worldview. Having formed what
19992-410: The party membership of Todor Zhivkov , who ruled the country for over 30 years during the socialist period and who was still very popular among socialists. After having successfully completed two presidential terms, he re-joined the socialist party and initially put himself forward for another mandate as chairman, but withdrew it before the party's congress in 2012. Two years later, he was expelled from
20160-543: The party remained in opposition to the Third Borisov Government , which included the far right United Patriots . The BSP supported the 2020–2021 Bulgarian protests and led the left-wing opposition for a failed non-confidence vote . The protests ended when the prime minister Boyko Borisov resigned, but results after the April 2021 Bulgarian parliamentary election proved to be fragmented. After failed attempts from
20328-545: The party suffered numerous defections. Several party branches disassociated themselves from the party, Maya Manolova refused to renew her membership and instead went on to form her own party Stand Up.BG , a significant portion of the party's parliamentary caucus left to form the Bulgarian Progressive Line , while a portion of the party's old-school membership left to form the Left Union for a Clean and Holy Republic ,
20496-511: The party's chairperson. Ninova's initial approach to managing the party was to present for election independent popular candidates, who nevertheless shared much of the socialists' worldview, as the party's candidates. This was exemplified by her decision to back Rumen Radev , previously the non-partisan head of the Bulgarian Air Force in the 2016 Bulgarian presidential election . Radev, though nominally running as an independent candidate,
20664-408: The party's philosophy also proved very internally divisive, and many factions formed to oppose Ninova within her own party, further galvanized by the fact that Ninova had taken part in privatization deals during the 90s. This internal opposition also accused Ninova of acting in a very authoritarian manner in attempting to crush internal dissent, comparing her to SDS leader Ivan Kostov . Because of this,
20832-481: The party, clasifying the parties electoral results as "catastrophic". Ninova announced that an acting chairperson from within the ranks of her deputies would be chosen in the following days by the parties National Council, who would be tasked with carrying out direct elections of the Chairperson in the autumn. She refused to confirm or deny if she would present her own candidacy in such an election. The National Council
21000-476: The political spectrum, with centre-left and centre-right variants both being common. Christian democrats often support the welfare state, and social justice has been a frequent theme among Christian democracy parties in Latin America. Christian democracy in Europe is not usually associated with the centre-left, instead favouring the centre-right. Though it is often associated with conservatism, some elements of Confucianism invoke ideas that are associated with
21168-399: The politics of nearly every major democracy, though it has historically been most successful in the European Union , where it was the predominant ideology from 1945 to 1973. Sweden in particular has historically been closely associated with social democracy, as it was the first country to be led by a social democratic party, and social democrats in Sweden continued to be relevant even after
21336-451: The position of Mayor of Sofia , with the party's candidate Maya Manolova narrowly losing out to the incumbent Yordanka Fandakova . However and much more controversially, around this time Ninova began to shift the party's orientation toward traditionalism and social conservatism , advocating against same-sex marriage and the Istanbul Convention , as well as taking a harsh stance against perceived 'gender ideology'. These changes to
21504-513: The position. During his chairmanship, however, he opposed the NATO bombing of Yugoslavia . He stated that this was not a position against NATO , but only against its military operation. He stated that he would support Bulgaria's entry into NATO, but insisted that such an accession should only happen after negotiations with Russia. Though he was considered a member of the party's liberal wing, Parvanov also reached out to its more left-wing members and restored
21672-573: The precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis , which occurred due to a high default rate and resulting foreclosures of mortgage loans , particularly adjustable-rate mortgages . Some or all of the following factors contributed to the crisis: The relaxing of credit lending standards by investment banks and commercial banks allowed for
21840-528: The previous BSP-led government communist even though, as written in Jacobin by sociologist Jana Tsoneva, that government "had introduced some of the most radical neoliberal policies." In the 2013 Bulgarian parliamentary election , the party took 30.6% of the votes, second is GERB with 26.5%. Plamen Oresharski , the party's candidate for prime minister, and the Oresharski Government were elected with
22008-501: The price appreciation. In a Peabody Award -winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as
22176-647: The progressive Urbano Rattazzi , the heads respectively of the Right and Left groupings in Parliament. This alliance was called " connubio " ("marriage") for its opportunist characteristics. Liberalism was typically associated with the centre-right in the late 19th century, but liberal parties in France, Switzerland, and the United Kingdom adopted left liberal policies through coalitions of middle and working class voters that survived until World War I . Progressivism developed as
22344-451: The promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide . Depending on how "subprime" mortgages are defined, they remained below 10% of all mortgage originations until 2004, when they rose to nearly 20% and remained there through the 2005–2006 peak of the United States housing bubble . The majority report of the Financial Crisis Inquiry Commission , written by
22512-419: The purpose of increasing economic growth to fund public goods such as education, healthcare, and pensions. The Third Way may be defined as centre-left or as centrist . Christian democracy is an ideology that incorporates Catholic social teaching into a secular political philosophy. Though most enduring Christian democratic parties are centrist, those in Latin America have historically ranged across
22680-400: The pyramid suffered a decrease. The following is a timeline of the major events of the financial crisis, including government responses, and the subsequent economic recovery. There is a really good reason for tighter credit. Tens of millions of homeowners who had substantial equity in their homes two years ago have little or nothing today. Businesses are facing the worst downturn since
22848-447: The region, which allowed redistributive and socially inclusive policies to be implemented. In East Asia, interventionism and developmental policy were adopted by right-wing parties rather than centre-left parties. Keynesian economics declined in popularity after the end of the post-war consensus, spurred by the 1970s energy crisis and the subsequent recession . The centre-left parties that had held power to that point received much of
23016-416: The relatively conservative government-sponsored enterprises (GSEs) policed mortgage originators and maintained relatively high underwriting standards prior to 2003. However, as market power shifted from securitizers to originators, and as intense competition from private securitizers undermined GSE power, mortgage standards declined and risky loans proliferated. The riskiest loans were originated in 2004–2007,
23184-566: The removal of Ivan Takov as head of the Sofia City organisation of the party, thus officially restoring him to that position. Takov's reinstatement was opposed by the recently elected leader of the BSP-Sofia organisation, Diana Toneva, who noted that she had already been legally registered as the leader of the organisation and argued that the Conference of the cities organisation which had elected her
23352-502: The resignations of both Stanishev and the government. Following the end of his chairmanship, the party adopted what was popularly dubbed the "anti-Stanishev amendment", which effectively barred him from returning to this position in the future. Stanishev then left Bulgarian politics and instead moved to the European level, where he was elected as the chairman for the Party of European Socialists . Mihail Mikov entered into his chairmanship under
23520-527: The rest of the left–right political spectrum in 18th and 19th century France, where the centre-left included those who supported transfer of powers from the monarchy to parliament or endorsed moderate republicanism . Early progressivism and left liberalism evolved in the late-19th and early-20th centuries in Western Europe and the United States, while social democracy split from revolutionary socialism , which became associated with communism , and advocated reformist socialist positions. Social democracy became
23688-610: The six Democratic appointees, the minority report, written by three of the four Republican appointees, studies by Federal Reserve economists, and the work of several independent scholars generally contend that government affordable housing policy was not the primary cause of the financial crisis. Although they concede that governmental policies had some role in causing the crisis, they contend that GSE loans performed better than loans securitized by private investment banks, and performed better than some loans originated by institutions that held loans in their own portfolios. In his dissent to
23856-453: The socialists were not able to overtake GERB and Ninova handed in her resignation, only to withdraw it shortly before it was due to be voted. The party also improved its results in the 2019 Bulgarian local elections , increasing its support across the board in the Bulgarian local scene and even winning some districts of the capital Sofia , a city known as a bastion of centre-right and right-wing politics. The socialists even nearly managed to win
24024-474: The socioeconomic model of a social market economy , a regulated market economic system that promoted free markets and fair competition with regulation for social policies and a welfare state . The centre-left is descended from left-wing politics, which originated in the French Revolution and in the response to early capitalism. In France, the early centre-left was led by Adolphe Thiers , head of
24192-518: The stock market. The party under Videnov opposed what was perceived as the strong political and economic over-reliance on the United States, and instead sought to foster more friendly relations with the neighbouring PASOK -ruled Greece and SPS -ruled FR Yugoslavia . Parvanov, who had also been on the Bulgarian-Greek Parliamentary Friendship Committee, and was later elected as president of Bulgaria , chose to keep
24360-464: The supply of mortgages originated at traditional lending standards had been exhausted, and continued strong demand began to drive down lending standards. The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into
24528-414: The turn of the century caused distress among voters, including increased perceptions of social inequality and fear of change, causing voters to move away from traditional centre-left ideologies toward populism . The Great Recession exacerbated this trend, bringing significant challenges to the rule of centre-left parties, particularly those with social democratic leanings. In Europe, this brought about
24696-509: The wake of allegations of widespread political corruption . The cabinet was also unable to react to the encroaching global financial crisis of 2007–2008 and its term ended with a budget deficit after several successive surplus years. In the 2009 Bulgarian parliamentary election , the BSP was defeated by the new conservative party GERB , obtaining 37 out of 240 parliamentary seats (18%), and went into opposition. GERB assumed power through an anti-communist and anti-Turkish platform, calling
24864-620: The welfare state and regulated labour markets . In the 20th century, trade unions and their working class constituency were closely associated with social democratic and labour parties, especially in Scandinavia, the United Kingdom, and former British colonies in the Pacific. These associations generally lessened by the end of the century as union membership declined and centre-left parties shifted toward Third Way politics, which introduced elements of neoliberalism into centre-left politics, increasing
25032-545: The worst of the Great Recession by mid-2009. Assessments of the crisis's impact in the U.S. vary, but suggest that some 8.7 million jobs were lost, causing unemployment to rise from 5 percent in 2007 to a high of 10 percent in October 2009. The percentage of citizens living in poverty rose from 12.5 percent in 2007 to 15.1 percent in 2010. The Dow Jones Industrial Average fell by 53 percent between October 2007 and March 2009, and some estimates suggest that one in four households lost 75 percent or more of their net worth . In 2010,
25200-617: The years between 1994 and 2007. They also argue that the Federal Reserve's classification of CRA loans as "prime" is based on the faulty and self-serving assumption that high-interest-rate loans (3 percentage points over average) equal "subprime" loans. Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio magazine, Michael Lewis spoke with one trader who noted that "There weren't enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for
25368-464: The years of the most intense competition between securitizers and the lowest market share for the GSEs. The GSEs eventually relaxed their standards to try to catch up with the private banks. A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy-to-qualify automated underwriting and appraisal systems, by designing no-down-payment products issued by lenders, by
25536-524: Was among the five worst financial crises the world had experienced and led to a loss of more than $ 2 trillion from the global economy. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. The increase in cash out refinancings , as home values rose, fueled an increase in consumption that could no longer be sustained when home prices declined. Many financial institutions owned investments whose value
25704-442: Was asked, but refused to resign from her post. However, many party organizations, including the BSP's own youth wing demanded that she resign, which she agreed to do the following day. However, Ninova later stated that her resignation was not yet valid and she would remain the party's chairperson until a congress approved it at an undefined later date. Nevertheless, the BSP's national council gave Ninova its approval for her to negotiate
25872-450: Was bailed-out. Instead of financing more domestic loans, some banks instead spent some of the stimulus money in more profitable areas such as investing in emerging markets and foreign currencies. In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the United States to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted worldwide. Since
26040-542: Was based on home mortgages such as mortgage-backed securities , or credit derivatives used to insure them against failure, which declined in value significantly. The International Monetary Fund estimated that large U.S. and European banks lost more than $ 1 trillion on toxic assets and from bad loans from January 2007 to September 2009. Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009. The crisis rapidly spread into
26208-415: Was developed in the United Kingdom by liberal politicians such as John Maynard Keynes and William Beveridge , who advocated market restrictions to the benefit of the public. Keynesian economics became the mainstream in Western Europe during the 1950s and 1960s, while the social market economy was developed by social democrats in Germany at the same time. As social democracy became influential in Europe,
26376-494: Was dubbed a 'liberal' tripartite coalition, he signed the accords for Bulgaria's entry into the European Union and NATO , while also implementing economic reforms that were criticised as being neoliberal and contrary to socialism, such as the flat tax that replaced progressive taxation in the country. Because of this, he became highly polarizing within the socialist party, generating harsh internal opposition and leading to
26544-458: Was legitimate. Throughout July, the conflict between supporters and opponents of Ninova and conversely the new leadership intensified. Svilenski, a key Ninova ally, called on BSP members to support Ninova's nomination in spite of the control council decision. For their part, the new leadership intensified efforts to create a new left-wing alliance which would include political projects formed by dissident BSP members. This effort culminated prior to
26712-550: Was made by Community Reinvestment Act (CRA)-covered lenders into low and mid-level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all subprime lending occurred at CRA-covered institutions and another 25% of subprime loans had some connection with CRA. However, most sub-prime loans were not made to
26880-451: Was met with criticisms regarding the timeline of protection. Following the parties poor performance in June 2024 Bulgarian parliamentary election , a number of figures within the party, including the leader of the youth wing, Gabriel Vulkov, called on Ninova to resign. On the 11th of June, two days after the elections, Korneliya Ninova announced her intention to resign her position as Chairwoman of
27048-508: Was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that
27216-515: Was put in place thanks to a joint effort with the US Department of the Treasury. This plan was meant to make it easier for consumers and businesses to get credit by giving Americans who owned high-quality asset-backed securities more credit. Before the crisis, the Federal Reserve's stocks of Treasury securities were sold to pay for the increase in credit. This method was meant to keep banks from trying to give out their extra savings, which could cause
27384-559: Was reinforced by the wave of democracy that followed, allowing socialists to participate in electoral politics. Social democrats made up the centre-left during the interwar period in Europe, advocating government regulation and intervention in opposition to the passive policies of the predominant Marxist and classical liberal parties. The centre-left and the centre-right in this period were primarily divided by their stance on trade unions, with social democracy advocating greater powers for unions in collective bargaining. In Western Europe,
27552-405: Was scheduled to convene to discuss the question of electing an Acting Chairperson, among other questions relating to internal party affairs, on the 15th of June. Prior to the convention of the National Council, deputy-chairman of the party, Georgi Svilenski claimed there was a conspiracy within the party among the previous leadership in order to carry out a coup. Additionally, Korneliya Ninova wrote
27720-427: Was still nominated by the socialists and ran with Iliana Iotova , a leading socialist, as Vice president . This proved to be a recipe for success, as Radev convincingly defeated GERB candidate Tsetska Tsacheva in the election and was elected as President of Bulgaria . Ninova then managed moderate improvements in the party's electoral performance during the 2019 European Parliament election in Bulgaria . Despite this,
27888-522: Was succeeded by Sergey Stanishev . It was a break of the two-party system between the BSP and the SDS. After two full terms out of power ( 1997 – 2001 ), the BSP-led Coalition for Bulgaria won the 2005 Bulgarian parliamentary election with 31.0% of the vote but without a governing majority, and formed the Stanishev Government , headed by the prime minister and BSP chairman Stanishev, with
28056-449: Was that of New Labour in the United Kingdom. Centre-left politics remained unpopular in much of Continental Europe at this time. Third Way politics lost support among the centre-left after the early 2000s, and neo-Keynesianism regained popularity. Centre-left ideologies were among those uplifted by the pink tide in Latin America in the late 1990s. Early centre-left politics and progressivism in Latin America has focused heavily on
28224-615: Was the only country at the time to have ruling party that was explicitly social democratic, the Swedish Social Democratic Party . Other European countries with social democratic governments included Denmark, Norway, and Czechoslovakia. The Democratic Party in the United States also implemented centre-left policies with the New Deal , as a lack of ties to socialist groups allowed for a stronger centre-left relative to other countries. Centre-left ideas proliferated rapidly after
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