Italy, Germany and the EU’s Future

Photo by Eric Fischer | CC BY 2.0

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 Schroder’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…

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