The
economic elites on both sides of the Atlantic have
suddenly seen their plans for the future run into a volatile foe: democracy.
I say sudden because who would have thought, say five years ago, that
an aroused popular will would be shaking the foundations of the political
order from Los Angeles to Bucharest?
Said elites do have plans. They are intent on - amongst other things -
using the current economic crisis to dive down wages, curtail public spending
on things like healthcare and education, compel people to work more years
before retirement and reduce social benefits available to the elderly
and the poor. It’s been called the Berlin Consensus, which University of Missouri law and economics professor,
William K. Black, writes rests on “austerity today, austerity tomorrow,
austerity always” and is “a road map to ever
greater inequality.”
Then, along came Occupy and the mass
protests in the streets of Europe calling attention
to the gross inequalities the system has already produced. Now this year,
resistance to the cutback schemes began to take the form of protest at
the ballot box.
“Europe is experiencing
a process of political renewal.” the editors of the Financial Times
declared last Friday. “Voters in Greece,
Italy and, to a lesser extent, France, are understandably
turning away from a disconnected political class and looking for those
offering new ideas and solutions. This sentiment is acute among the young,
whose opportunities have been damaged by the crisis and feel particularly
excluded from political discourse.”
At the moment there is dismay and
consternation in European political circles, particularly in Germany where government policies
have been most in tune to the interest of the big banks and other multi-national
financial institutions. For months now, we have been told repeatedly that
the political conflicts on the continent were characterized German resentment
toward the neighboring nations to the south which were viewed as irresponsible
and undeserving supplicants. Then came Sunday’s
election in state of North Rhine Westphalia, which includes the cities
of Cologne, Düsseldorf, Essen,
and the industrial Ruhr region. There, German Chancellor
Angela Merkel’s Christian Democrats (CDU) suffered a humiliating electoral
defeat. At once it became clear that the program of economic austerity
her government has attempted to foist off on less-well-off European countries
won’t fly too well at home as well. Merkel “will face a harder time securing
backing for her austerity policy at home, at a time when resistance to
it is building across Europe,” said Der Spiegel.
“While CDU politicians sought to
label the SPD-Green government as irresponsibly profligate, calling it
‘pro debt’, campaigners for the coalition made a point of holding election
rallies in disused swimming pools and derelict recreation facilities to
emphasize the result of decades of under-investment and neglect in the
state, which suffers from high unemployment and declining industry,” wrote
Kate Connolly in the Guardian.
“Rejecting the conservatives’ hard-line
platform of more austerity and finger-pointing, German voters instead
voted for the Social Democrats, for a platform of more spending and, shockingly,
for more debt,” wrote Robin Wells in the Guardian Monday. “This
caps a series of defeats in state elections for Merkel and makes it increasingly
clear that her government is in serious jeopardy.”
Meanwhile, across the continent the
democratic revolt continues in earnest. In Poland,
the Solidarity union and other labor organizations are threatening to
cause havoc at the European football championships next month in Warsaw to protest a government decision to push the retirement age
up to 67 years. Last week, as the parliament was voting to approve the
measure, demonstrators rallied outside the building blocking traffic.
News reports say they set fire to pictures of government officials and
a huge Prime Minister Donald Tusk in effigy. Voter sentiment continues
to move leftward in The Netherlands and also in Sweden where Ewald
Engelen, a professor of financial geography
at the University of Amsterdam, told the Financial Times, “The
lower-educated, more vulnerable parts of the electorate are sensing that
these austerity policies are breaking down the last bulwarks that protect
them from globalization, all in the name of saving the euro.”
Meanwhile, Ireland’s May 31 referendum
on the EU fiscal treaty could well be an important indication of the democratic
response to austerity there as well.
“The
recent election results in France
and Greece are a massive
blow against the failed policies of austerity in Ireland
and across Europe,” says Sinn Fein’s deputy leader
Mary Lou McDonald. “‘A "no" vote in Ireland on 31 May will strengthen the hand of
all those arguing for jobs and growth.”
“Sunday’s regional German elections
offer a small ray of hope. Merkel’s party received a thrashing in North
Rhine-Westphalia, home to nearly one in five Germans,” economist Wells
wrote in the Guardian. “Rejecting the conservatives’ hard-line
platform of more austerity and finger-pointing, German voters instead
voted for the Social Democrats, for a platform of more spending and, shockingly,
for more debt. This caps a series of defeats in state elections for Merkel
and makes it increasingly clear that her government is in serious jeopardy.
“Perhaps, just perhaps, German voters
are waking up. And therein lies the possibility that the euro can be saved.”
“The next 100 days promise to be
the most important in a generation for Europe,” wrote
columnist Guardian columnist Will Hutton this week. “Unless Germany
can be persuaded by, primarily, the new French president, but also by
the grim march of events to change tack fast, there is now a 50/50 chance
that euro membership could be reduced to a cluster of small states around
Germany. A series of uncontainable bank runs and
financial collapses could not be handled by the current structures. The
result would be a European depression from which Britain would not be immune.
It is the one part of the world to which our exports are currently rising.”
The implications of the European
voter revolt are being noticed here on this side of the pond as well.
It’s funny how a dramatic political
crisis can focus the mind, how things like the Occupy movement and the
European voters’ revolt can shift perception - even the public expression
- of the powers-that-be in politics and the media. For instance, the editors
of the Los Angeles Times now maintain that they have “long argued
that faster growth is crucial to solving the U.S. budget problems.” Well,
they haven’t actually made that case very forcefully or urgently. But
now, they say it “may” be a “good idea to mitigate the harsh spending
cuts with stronger economic growth.” Why? Because, “If the political turmoil
in Europe derails the hard-won agreement over a rescue plan for Greece
and other teetering economies, the result could be an even deeper recession
that spreads across the continent, if not the total collapse of several
countries’ economies. Such a turn of events would inflict pain around
the world.”
American Prospect publisher Robert recently asked if the fall of French Prime Minister
Nicolas Sarkozy would “help Democrats learn
what he never could?” “Democrats should consider Sarkozy’s
fate a cautionary tale - and a call to action. If they rally around the
cause of growth, jobs, and optimism, the nation will benefit and they’ll
be rewarded at the polls,” he concluded. As Campaign for America’s Future’s Richard (RJ) Eskow put it, “When it comes to Democrats these days, you’ve
got to fight for their party against its right.”
“The United
States economy is doing better than most of Europe. But the austerity debate continues here, too,” said the New
York Times following the French election. “So is there a warning for
House Republicans who have endorsed Representative Paul Ryan’s draconian
budget? And for Mitt Romney, their party’s presumptive
presidential nominee? Controlling deficits is important, but too
much austerity too soon will stall a recovery, or worse, and wreak havoc
on lives. Europe’s grim growth numbers prove that.
And voters in Europe have figured it out.”
“There has always been a gap between
public policy and public will, but it just grew astronomically,” Professor
Noam Chomsky writes in his new book Occupy.
“You can see it right now, in fact. Take a look at the big topic in Washington that everyone concentrates on: the deficit. For the public,
correctly, the deficit is not regarded as much of an issue. And it isn’t
really much of an issue. The issue is joblessness. There’s a deficit commission
but no joblessness commission. As far as the deficit is concerned, the
public has opinions. Take a look at the polls. The public overwhelmingly
supports higher taxes on the wealthy, which have declined sharply in this
period of stagnation and decline, and the preservation of limited social
benefits.
“The outcome of the deficit commission
is probably going to be the opposite. The Occupy movements could provide
a mass base for trying to avert what amounts to a dagger pointed at the
heart of the country.”
BlackCommentator.com Editorial Board member
Carl Bloice is a writer in San Francisco, a member of the National Coordinating Committee of
the Committees of Correspondence for Democracy and Socialism and formerly worked for
a healthcare union. Click here to contact Mr. Bloice.
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