The rise of the right wing in Europe is bad news for the economy. I have purposely referred to the right wing as this is the way the alliance forged in Milan this week by parties from Italy (Lega), Germany (Alternative for Germany), Finland (the Finns Party) and Denmark (People’s Party) has styled itself. These parties have since been joined by the Austrian Freedom Party.
So far, conspicuous by their absence in this alliance is National Rally of France (led by Marine Le Pen), Poland’s governing PiS (Law and Justice party) and Hungary Prime Minister Viktor Orban’s Fidesz party. This means that the attempt to unify the right-wing parties (currently grouped under three headings in the European Parliament – ENF, ECR and EFDD) has been so far ‘unsuccessful’. However, it does not mean that eventually they will not be successful to really present one alliance at the forthcoming European Parliament elections.
The target that has been set for this alliance is to win enough seats from the European People’s Party, the Progressive Alliance of Socialists and Democrats, and the Alliance of Liberals and Democrats for Europe, to become the largest political grouping in the European Parliament and thus become kingmakers in the appointment of the key roles in the EU structures. Their slogan, “To the Europe of Common Sense” cannot be more misleading.
It needs to be stated clearly that this reference to the right wing of the political spectrum is rather a cliché and should not be given the same meaning as the distinction we had in the past between left and right, where the right tended to represent very liberal economic policies, in contrast with the left that favoured significant state intervention in the economy. Today’s right wing parties are certainly not liberal in their outlook. And this is why I consider them to be a danger to the European economy.
The stance of these right wing parties would destabilise the economy of the eurozone and the wider European Union
They have claimed that they want to “change the rules of Europe”, and to “shake up the European Union”. These parties have often been described as populist parties because they have stated very often what they are against but not really what they are in favour of. They are appealing to the anger of people across Europe resulting from the economic measures put in place to address the international economic crisis, rather than proposing any concrete economic measures.
They have spoken against the euro. However, they have not really stated what would replace the euro. They have spoken against the rules that impose restrictions on member state governments with regard to their national budgets, but have not explained what the consequences would be of an unsustainable fiscal deficit. They have spoken about trade protectionism, ignoring the fact that this would in effect work against the interests of each member state, if import tariffs were imposed.
The core issue is that the stance of these right wing parties would destabilise the economy of the eurozone and the wider European Union. It would destabilise relations between member states and between the EU and other countries. It would certainly hinder economic growth and not support it.
It needs to be remembered that even if such an alliance were not to make such a big headway in the EP elections, some member parties actually form part of the government in their respective countries, such as Italy. This could mean that some persons nominated by the member states for the role of European Commissioner could actually embrace this populist outlook, and therefore could still be a disruptive force.
Thank goodness, in Malta we are not plagued by such right wing (or populist) parties. Our two main parties have steered away from such policies. As such we may assume that the danger is not close to home. We would be wrong in assuming this, as we need to appreciate that the EU has forged ahead in the last 60 years thanks to the equilibrium and stability that its leaders have created. If the right wing parties disturb this stability and equilibrium, we will be that much worse for it, and our economy will suffer as well.