(Mint Press)— The narrow victory by Socialist Presidential Candidate Francoise Hollande over the more conservative incumbent, Nicolas Sarkozy sent shockwaves through Europe over the weekend. Winning nearly 52 percent of the vote in runoff elections, Hollande has become France’s first Socialist president in 20 years, a clear rejection of previous governments supporting economic austerity.
Soaring unemployment coupled with government led economic austerity has caused a backlash among discontented Europeans pining for jobs and the continuation of once strong social programs such as universal healthcare and highly subsidized university education. The rejection of current governments is partially fueled by right-wing nationalist movements that blame economic woes on immigration and the open border Eurozone system. By creating a borderless confederation of interconnected states, the Eurozone system allows for the free movement of citizens from one country to the next.
Trade partners react
“Austerity need not be Europe’s fate,” said Hollande shortly after his victory. While previous governments acquiesced to German led economic austerity measures, France’s recent vote shows a population vexed by the neoliberal economic dictates designed by the European Central Bank and other European Union (EU) member states.
Global markets still recovering from the 2008 financial recession showed trepidation and uncertainty following Hollande’s victory, with few western leaders knowing exactly how the new president will work to reform French economic policies.
Chief among the countries cautiously observing the proceedings is the United States, a top trade partner of the EU. Following Hollande’s victory, U.S. President Barack Obama invited him to meet at the White House ahead of the Camp David G-8 summit.
A spokesman for the White House said, “President Obama indicated that he looks forward to working closely with Mr. Hollande and his government on a range of shared economic and security challenges,” demonstrating a willingness to engage the new French leader.
The main campaign promise that won Mr. Hollande popular appeal with the French electorate was his belief in maintaining critical social programs through increased taxes on France’s wealthier citizens. He has also advocated for decreases in government spending in order to decrease France’s staggering $2 trillion dollar debt. More a social democrat than a traditional Socialist, Hollande has professed his belief in a mixed economy, with strong public and private sectors of employment.
Foreign policy, while not as salient to voters as economic policies, still remained important as many in the French electorate call for a swift end to French involvement in Afghanistan. The U.S.-led NATO pullout plan has set a 2014 timetable for withdrawal, with American support extending until 2024. However, Hollande and his supporters indicate that they will push for the 3,600 French troops to leave Afghanistan by the end of this year.
The rise of right-wing European nationalism
While Europe has long been seen as a bastion of secular liberal values, a recent rise in the number of right-wing nationalist groups has undermined this European legacy.
Although constituencies in France have opted for a leftist president, other countries in recent years have blamed economic woes on immigration policies and shared, open borders with other EU member states that erode national sovereignty and strain the idea of a cohesive national identity.
While Greece mostly voted the liberal, anti-austerity line in recent elections, the surprising rise of the neo-Nazi “Golden Dawn” party could signal more conservative immigration policies. Winning 7 percent of seats in Greek parliamentary elections, the Golden Dawn Party captured 21 out of 300 parliamentary seats, making it the first ultra-right wing party to establish a foothold in Greek electoral politics since the 1974 military junta.
Speaking on the victory, party leader Nikos Michaloliakos gave an ominous warning to rivals saying, “The time for fear has come. The time for fear has come for those who betrayed this homeland.” Although the Greek Communist Party also improved its standing in elections, the victory by Golden Dawn is puzzling given the historical Greek opposition to Nazism in WWII. Michaloliakos and his party call for closed borders and an end to immigration as part of their plan to restore Greece to economic prominence.
More than 20 percent of Greece’s workforce is unemployed and half of all working age youth are without jobs. Soaring government spending and mounting debt has crippled the Greek economy, causing some to question the long-term viability of the unified Eurozone economy.
In the Netherlands, Geert Wilders rose to prominence to lead the right-wing Party for Freedom. As an ardent critic of Muslim immigration, Wilders has long blamed Islam as being a religion that incites violence. Having had a libel suit against him, Wilders is not stranger to critics who cite his record of vitriolic, hateful speech against Muslims and immigrants. Wilders leads the third most popular party in the Netherlands and has called for significant reductions in immigration to the Netherlands.
Transient groups like the stateless Roma (Gypsies) have also drawn the scorn of right wing groups, prompting concern from Jeno Kaltenbach, the chairman of the Council of Europe’s Commission Against Racism and Intolerance. “Xenophobic rhetoric is now part of mainstream debate. Resistance to racism is essential to preserve Europe’s future.” In 2010, France expelled 8,000 Roma living in the country.
Going forward: the debt crisis and the immigration imperative
Since the 1993 Maastrict Treaty, the EU has swelled to include 27 member states, several of which are lesser developed economies in the Balkans and Eastern Europe. This relatively rapid integration of countries into a single, unified economy has been problematic as individual states, like Greece, often have government spending that exceeds private sector economic output. Greece, having perpetually opted to take out loans from other nations in order to maintain a robust public sector now faces a soaring debt crisis.
The definitive elections in both Greece and France have sent a unified anti-austerity message to the EU: governments need to find a way to remain solvent while maintaining strong public sector benefits to support workers and retirees alike. Perhaps an impossible scenario by some economic forecasts; the solution, not surprisingly, may be in increased immigration.
EU countries have enjoyed strong universal healthcare programs, and as a result Europeans have some of the world’s highest life expectancies. The increasingly aged populations have put a strain on generous healthcare and pension systems in countries that tend to have smaller family sizes and dwindling tax bases incapable of supporting the increasing number of senior citizens.
Kofi Annan, former UN Secretary General, wrote an important piece in 2004, aptly titled, “Why Europe Needs an Immigration Strategy.” In the article, Annan argues:
“One of the biggest tests for the enlarged European Union, in the years and decades to come, will be how it manages the challenge of immigration. If European societies rise to this challenge, immigration will enrich and strengthen them. If they fail to do so, the result may be declining living standards and social division. There can be no doubt that European societies need immigrants. Europeans are living longer and having fewer children. Without immigration, the population of the soon-to-be twenty-five Member States of the EU will drop, from about 450 million now to under 400 million in 2050.”
Immigration, particularly from countries that can provide young, inexpensive labor would seem to be a solution to this trend of population decline. While not the panacea for broader systemic economic issues, it would seem that European countries like France should be encouraging immigration and pro-natalist policies as a means to fortify their ailing healthcare and pension systems.