New Delhi:
The Congress has survived the crisis scripted by Mamata Banerjee, but the ruling party needs a canny political strategy to ensure that it is stable even as the government it leads steps up on reform measures like allowing foreign direct investment in multi-brand retail, which are unpopular with Opposition parties and existing allies alike. The party's highest decision making body, the Congress Working Committee (CWC), met today to discuss how to complete its term and reach 2014 with least dissonance.
Finance Minister P Chidambaram briefed the CWC on the economic reforms and explained the need to take tough measures. He also said that the government was compelled to take such a decision because of the fluctuating value of rupee against the dollar.
Addressing the media after the meeting, Congress leader Janardhan Dwivedi said that the CWC too backed the government's decision with party president Sonia Gandhi saying reforms were essential. Mr Dwivedi also said that Mrs Gandhi slammed the BJP for not behaving like a responsible Opposition.
In a televised address to the nation last week, the Prime Minister had explained the rationale behind taking difficult decisions like allowing FDI in multi-brand retail and the move to reduce fuel subsidy - the country's fragile economic situation needed that push, he said, and asked for his hands to be strengthened in a tough hour. The party has made it clear that it will back the PM, but it will also need to tackle the issue politically and be seen to address the concerns of its allies.
Ms Banerjee pulled out of the Manmohan Singh government last week in protest against the series of reforms that it announced, including a hike in diesel prices, a cap on supply of subsidised cooking gas and FDI in retail. She will now lead a protest rally in New Delhi on October 1, Monday next. The man who stepped in to the save the day by declaring that his external support to the government continues, Mulayam Singh Yadav, too is opposed to the FDI decision and has said he will protest against it. These parties argue that allowing big foreign chains like Walmart to set up shop in India will hit farmers and small retailers.
The Congress' argument is that the decision had to be taken for the long-term benefit of farmers and for economic growth. It has its eye on numbers - Mamata Banerjee pulling out the support of her 19 MPs meant that the UPA government became well short of the 272 half-way mark in Lok Sabha that it needs to have. Mr Yadav and Mayawati's BSP, which too provides external support to the government, have ensured the government is safe for now with the 44 MPs that they together add. Like Mr Yadav, Ms Mayawati has protested against the recent reforms.
The BJP and the Left have been joined by Ms Banerjee's Trinamool Congress in the demand that a special session of Parliament be called to debate FDI in retail, which has already been notified and is now law. The government does not need Parliament to endorse the FDI move as it is an executive decision, but the Opposition parties are holding the government to a promise it made last year that it would consider the views of all political parties before making that decision.
The CWC includes Chief Ministers of Congress-ruled states, general secretaries and special invitees - the CMs will bring to the table their own concerns as the government moves to cut back on subsidies. Today's meeting will be presided over by Congress president Sonia Gandhi.
Today's meeting was also significant as it is the first since "Coal-gate" rocked the government after the national auditor tabled a report on coal block allocation alleging that private companies were allowed "undue benefits" of Rs 1.86 lakh crore. The BJP stalled the entire Monsoon Session demanding the PM's resignation; the Congress has consistently rejected charges of any wrongdoing in the matter and has accused the Comptroller and Auditor General or CAG of having a political agenda.