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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