Page 21 - Bloomberg Businessweek - November 19, 2018
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Bloomberg Businessweek                     The Year Ahead 2019                        Politics
  Brexit                                         fellow at the Centre for European Reform, a pro-EU

                                                 Gostyńska-Jakubowska, a Brussels-based research

                                                 policy group. “The whole election campaign will
                                                 be about what the European project is about, what
                                                 European  values mean now.”
                                                   It’s not difficult to see how we got here. A
                                                 decade of crises has taken its toll on Europe’s
                                                 political certainties. First came the debt  turmoil,
                                                 which  pitted Greece against Germany and
                                                 engulfed the whole euro area. As that subsided,
                                                 the Continent found itself dealing with the big-
                                                 gest influx of refugees since World War II. The
                                                 2016 Brexit referendum stirred the pot further:
                                                 Suddenly the dream of throwing off the shackles
                                                 of an unwelcome supranational union wasn’t as
                                                 impossible as most assumed.
                                                   Two years later, many nationalist movements
                                                 have moved away from talking openly about the
                                                 destruction of the EU. Populist parties includ-
                                                 ing Marine Le Pen’s National Rally in France
                                                 (recently renamed after decades as the National
                                                 Front) now talk about everything the EU is doing
                                                 wrong instead, from eroding national sovereignty
                                                 and identity to going soft on immigration and
                                                 being a slave to open markets and big businesses.
                                                 The Party for Freedom in the Netherlands, which               57
                                                   narrowly lost last year’s election, campaigned on
                                                 the promise of a U.K.-style referendum on mem-
                                                 bership. The Danish People’s Party, the country’s
                                                 second-biggest, wants to renegotiate its country’s
                                                 relationship with the EU, but it stops short of call-
                                                 ing for an exit.
                                                   “The extreme right is now posing as the
                                                 main defender of the welfare state, of benefits
                                                 for  working-class people,” says Michael Leigh,
                                                 a senior fellow at the German Marshall Fund        “The extreme right is now posing as
                                                 in Brussels and former European Commission     the main defender of the welfare state”
                                                 director general. “As with Brexit, it stems from
                                                 a combination of economic and identity issues.
                                                 Apart from the opportunism of radical populist
                                                 leaders, this is mainly a failure of social democ-
                                                 racy and the center-left.”
                                                   Europe’s Establishment isn’t giving up the
                                                 fight just yet. Macron’s victory in 2017 on a pro-EU
                                                 ticket, coupled with the reelection of Dutch Prime
      populists across the Continent mean many analysts   Minister Mark Rutte—who vanquished the Party
      expect them to do well. A survey of opinion polls   for Freedom’s euroskeptic, anti-Islam Geert
      from across Europe carried out by Italy’s Istituto   Wilders—has given mainstream parties some
      Cattaneo showed that the two main alliances could   heart. Despite plummeting popularity at home,
      register significant losses, with the center-left win-  Macron portrays himself as the leader of Europe’s
      ning fewer than 20 percent of seats. Nationalists   democratic bulwark. He has called for a “regroup-
      seem set to gain. “It’s likely we will see populists   ing” of European political bodies, creating an alli-
      use the EU as a scapegoat for all the  misgivings   ance of “progressive” politicians to take the battle
      they have about  politics domestically, just as we   to the energized nationalists on the May ballot.
      saw in the U.K.’s EU referendum,” says Agata   The European response to Brexit has been
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