Italy, Germany and the EU's Future
More than a quarter of a century ago, much of the European center-left made a course change, edging away from its working class base, accommodating itself to the globalization of capital, and handing over the post World War II social contract to private industry. Whether it was the "New Labour" of Tony Blair in Britain or Gerhard Schroeder's "Agenda 2010" in Germany, social democracy came to terms with its traditional foe, capitalism.
Today, that compact is shattered, the once powerful center-left a shadow of its former self, and the European Union -- the largest trading bloc on the planet -- is in profound trouble.
In election after election over the past year, social democratic parties went down to defeat, although center-right parties also lost voters. Last year's election in the Netherlands saw the Labor Party decimated, though its conservative coalition partner also took a hit. In France, both the Socialist Party and the traditional conservative parties didn't even make the runoffs. September's elections in Germany saw the Social Democrats (GPD) take a pounding, along with their conservative alliance partners, the Christian Democratic Union and Christian Social Union. And Italy's center-left Democratic Party was decisively voted out of power.
It would be easy to see this as a shift to the right. The neo-Nazi Alternative for Germany (AfG) has 92 seats in the Bundestag. The Dutch anti-Muslim Party for Freedom picked up five seats. The extreme rightist National Front made the runoffs in France. The racist, anti-immigrant Northern League took 17.5 percent of the Italian vote and is in the running to form a government.
But the fall of the center-left has more to do with the 1990s course change than with any rightward shift by the continent. As the center-left accommodated itself to capital, it eroded its trade union base. In the case of New Labour, Blair explicitly distanced the Party from the unions that had been its backbone since it was founded in 1906.
In Germany, the Social Democrats began rolling back the safety net, cutting taxes for corporations and the wealthy, and undermining labor codes that had guaranteed workers steady jobs at decent wages.
The European Union -- originally touted as a way to end the years of conflict that had embroiled the continent in two world wars -- became a vehicle for enforcing economic discipline on its 27 members. Rigid fiscal rules favored countries like Germany, Britain, Austria and the Netherlands, while straitjacketing countries like Greece, Italy, Spain, Portugal and Ireland, particularly in times of economic crisis.
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