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Governing coalition clashes over possible ban on insider tradingThe agreement between CSD and UnitedLeft may collapse
February 21, 2025
Tensions within Elthize’s governing coalition are rising substantially as the Congress for Social Democracy (CSD) and the UnitedLeft alliance clash over the Political Etiquette Act’s insider trading ban. The law aims to prevent elected officials from using confidential government information, such as upcoming policy changes, economic forecasts, or regulatory decisions, to influence their personal financial investments. Lawmakers found guilty could face removal from office, hefty fines, and imprisonment, making it one of the strictest measures against political corruption in Elthize’s history.
Zoe Allen, leader of CSD, the largest party in Parliament, has raised concerns about the law’s broad scope, arguing it could unfairly punish lawmakers for routine financial decisions. “We all support transparency and accountability, but we cannot create a system where politicians are afraid to make standard investments,” Allen stated in a press briefing. Sources within CSD suggest some members are pushing for amendments to clarify what constitutes insider information, introduce exemptions for certain financial activities, weaken penalties, or simply remove the ban altogether.
UnitedLeft, meanwhile, rejects any changes. President Melissa Chai, also leader of the Democratic Socialists of Elthize (DSE), called public office a “position of trust,” stating that "any lawmaker who prioritizes personal wealth over the people should have no place in government". Leon den Hollander, leader of the Communist Party of Elthize (CPE), took an even stronger stance, accusing CSD of “protecting corrupt elites".
The insider trading ban is part of Section 5 of the Political Etiquette Act, titled "Prohibition of Political Favoritism Toward Corporate Interests".
"No elected official, government employee, or political candidate shall propose, support, or enact policies that prioritize corporate profits, private financial interests, or economic entities over the fundamental rights and well-being of Elthic citizens."
The law considers the following to be a violation of this principle:
Supporting legislation that provides financial benefits, tax breaks, or deregulation for corporations at the direct expense of public services such as healthcare, education, workers' rights, or environmental protections.
Accepting bribes, gifts, or financial incentives from corporate entities in exchange for favorable political treatment, including campaign donations that result in policy influence.
Engaging in insider trading or using privileged government information for personal financial gain.
Allowing private entities to monopolize essential public services or infrastructure in ways that diminish affordability, accessibility, or public oversight.
Entering into government contracts with private businesses without transparency, competitive bidding, or consideration for public interest.
Section 5 of the Political Etiquette Act has become a major point of contention among Elthize’s political parties. While it has seen full support from the UnitedLeft alliance, other political parties have various issues with what is considered a violation of the proposed principle. Liam Zachary, leader of the Business Party, argued that the law is "anti-growth" and proposed the removal of Section 5 altogether. Wirt Harland, leader of the Progressive Conservative Party (PCP), stated that they would observe the discussions around Section 5 "with great concern".
The most interesting reaction came from Lorraine Devi, leader of Harmony, who has recently got in legal trouble over her role in recent lethal protests against the Political Etiquette Act. While Devi reiterated her staunch opposition to the proposed act, she stated that she fully supports an insider trading ban, calling it "a betrayal of the people". Devi also stated that she would vote for an insider trading ban if it were delivered separately from the Political Etiquette Act.
With both sides of the governing coalition stubborn over their vision on the bill, the future of the bill is uncertain. it is rumoured that the bill may be withdrawn from consideration, at least until the next general election. Nonetheless, the Political Etiquette Act does seem to enjoy popularity among Elthics: According to recent polling from the Polling Institution of Elthize (PIE), 45% of responders thought of the bill positively, compared to 27% of responders who thought of the bill negatively.
