THOUGHTS ON THE FUTURE DIRECTION OF EUROPEAN SOCIAL DEMOCRATIC MOVEMENTS
JOHANNES HÆKERRUP
European social democrats have had a difficult century so far. Since the 2008 financial crisis, European social democratic parties have faced chronic decline and some have virtually ceased to exist, such as in France, where the PS (Socialist Party) candidate Benoît Hamon only received just over 6% of the vote in the 2017 presidential election. However, Europe's political landscape is changing. Olaf Scholz's SPD victory in October in Germany, both the largest economy and most influential country in the European Union, represents the latest and perhaps greatest achievement of the European social democratic revival. Germany, Spain, Portugal, Denmark, Finland, Norway and Sweden are now governed by social democratic parties. According to the latest polls, Europe's S&D party will become the largest in the next European Parliament elections, the first time this has happened since 1994.
With their growing influence across the continent comes a rare and unique opportunity to promote wide-ranging and much-needed European reforms and policies. Social democrats should seize this opportunity and use their new influence to implement the changes that their supporters voted for. They must coordinate and cooperate with each other, as there are already opposition factions against them. Only if they unite around a common European agenda will they be able to create the change that Europe so desperately needs. Although the aims of each social democratic party may differ in some detail, there is a shared ideological commitment to building a society of equal opportunity, welfare, decency and democracy. This really unites rather than divides. The parties should
come together on the European economy, the protection of the rule of law and Europe's international role in the world, particularly on climate change. If they seize this opportunity now, they can have a lasting impact on Europe and the world.
A Fairer and More Flexible Economic Framework
It is time to reassess the economic structure of the Eurozone and the European Union, following the COVID-19 pandemic. Austerity policies following the 2008 financial crisis led to a devastating and ineffective economic recovery, with spending cuts stalling Europe's recovery. After the pandemic, most European countries adopted major economic spending plans, backed by an EU stimulus package of €806.9 billion. Countries have introduced furlough schemes, grants and loans for businesses and other demand-side measures. Now social democrats are calling for reforms to ensure that similar measures can be adopted in the future. The main point of contention is the European Stability and Growth Pact, which limits the state budget deficit to 3% of GDP and requires annual reductions in national debt if it exceeds 60% of GDP. However, these rules have been suspended since the start of the pandemic, but are due to come into force again in early 2023. These rules prevent countries with debt from introducing social democratic reconstruction plans involving long-term investment and demand-side interventions, as they are forbidden to undertake deficit spending. Instead, they must cut services and reduce
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