Sign in Subscribe
European Union

Europe's Divided House: A Year of Turmoil Comes to a Close

Strategic Insights

— 2 min read

A tumultuous 2015 in Europe has ended with a stinging note, underscoring Germany's increasing isolation and the deepening division of the European Union. Spain's election results have followed those in Portugal and Greece, punishing a conservative government that had allied with Brussels, Berlin, and international creditors in carrying out austerity policies. This trend raises concerns about the future of European unity and the growing power of populist parties.

Key Takeaways:

  • The 2015 European elections have resulted in a shift towards the left, with Spain's Podemos party emerging as a major force, echoing similar trends in France, Italy, and other European countries.
  • The erosion of traditional political parties in Europe has contributed to a fragmented political landscape, with upstart forces like the radical left in Spain and Greece gaining momentum.
  • Germany's Chancellor Angela Merkel is facing criticism for her economic policies, which have been seen as exacerbating Europe's economic woes and contributing to growing discontent among European citizens.
  • The European Union faces a critical moment in 2016, as it seeks to convince disillusioned publics of its relevance and necessity, with Germany's foreign minister, Frank-Walter Steinmeier, acknowledging that the refugee crisis has exposed the rifts in Europe.
  • The European Commission has shifted its stance on austerity, with Guntram B. Wolff of Bruegel cautioning that while austerity may not be the sole cause of Europe's political disarray, it remains a contentious issue.
  • The loss of membership in mainstream political parties, as seen in a study led by a researcher at the University of Leiden, has contributed to a sense of disenchantment with traditional parties, leaving voters vulnerable to populist promises.
  • The rise of populist parties in Europe poses a significant challenge to the European Union, as they tap into public discontent with economic pessimism, migration, and globalization.
  • Spain's political muddle has sent a clear signal that Europe has huge economic problems along its periphery, and that Germany is not the growth locomotive for Europe that it should be.

Statistics:

  • About 2/3 of the members of mainstream parties in France, Italy, and Britain have left since the 1990s.
  • A study found that 24 million people in Europe are currently unemployed, with unemployment rates exceeding 50% for some regions.
  • A study of Franois Lafond's research group also shows that 24 million people cannot live decently from what they earn.
  • A survey found that a majority of people (or the elected officials) believe the EU is in need of reforms or to meet its demands.

Sources:

  • The Financial Times
  • The Center for European Reform
  • EuropaNova
  • The German Council on Foreign Relations
  • Der Spiegel
  • Bruegel
  • The University of Leiden
  • Reuters

Read more