As Europe's economic crisis spreads northward, the traditional establishment in the region is looking for ways to deal with the rising popularity of extremist forces. Critically high unemployment levels are sustaining this development. Eurostat announced Tuesday that unemployment rates in the eurozone and the European Union remained unchanged in August compared to July (12 percent for the eurozone and 10.9 percent for the European Union, up from 11.5 percent and 10.6 percent, respectively, a year ago). But even if some members of the bloc emerged from recession in the second quarter of the year, extremely high unemployment remains by far the European Union's biggest political threat.
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In a trend that Stratfor identified in the early stages of the European crisis, Europe's problems have long ceased to be purely financial and have become political. High unemployment, particularly in Mediterranean Europe but spreading progressively to the north of the Continent, is leading to numerous demonstrations of social discontent. One of the main features of this phenomenon is the emergence of anti-establishment parties. All of these parties strongly criticize how the traditional elites have managed the crisis. Some include anti-immigration elements while others criticize the euro. At a time when several million Europeans have either lost their jobs or are afraid of losing them, the rhetoric that argues the process of European integration, the common currency or even foreigners are to blame for high unemployment is becoming increasingly attractive.
France is a clear example of this trend. Last week, French police dismantled a Roma settlement in the northern French town of Roubaix. A few days later, Interior Minister Manuel Valls said that it was impossible for France to integrate the 20,000 Roma now estimated to live in France, and some of them should be expelled. Both episodes generated strong criticism from the European Commission and, more important, by leading left-wing and Green party officials in the French government, highlighting divisions within the government itself on this issue.
However, French President Francois Hollande is aware that the anti-Roma rhetoric is popular in France even when his government is not. Last year, the far-right National Front achieved a record performance in the general elections, when it got 17.9 percent of the vote. Before the elections, the government of former President Nicolas Sarkozy was under pressure from the right to take a hard line on the Roma. In a sign of notable continuity between the Socialist government and its conservative predecessor, Paris has been one of the leading voices blocking the accession of Romania and Bulgaria to the Schengen Agreement, which eliminates border controls between member countries. This is a reminder that, independent of ideology, the European crisis is seriously undermining solidarity among member states.
The United Kingdom is going through a similar process. On Sept. 30, Interior Minister Theresa May announced that London is drafting a new immigration bill designed to create "a hostile environment" to illegal migrants in the country. May also announced that London would make it easier for illegal immigrants to be deported. London has recently said that it is studying ways to prevent the arrival of workers from Romania and Bulgaria, who will be legally allowed to work in Britain in 2014.
Since coming to power in 2010, the government of David Cameron has been under pressure from the right-wing faction of his Conservative party to take a stronger stance both on immigration and European integration. This happens as the U.K. Independence Party, Britain's traditional euroskeptical party, is gaining ground in opinion polls and local elections. The opposition party's rising popularity forced Cameron to announce in January that Britain will hold a referendum on its EU membership after the general elections of 2015. Britain's moves will be followed closely in northern Europe, as the crisis is strengthening euroskeptical sentiment in countries such as the Netherlands, Finland, Sweden and Denmark. In these countries, bailouts for southern countries are usually controversial, and anti-euro parties have similarly been gaining ground since the beginning of the crisis.
In Austria, mainstream parties are also losing ground. The country has traditionally been ruled by two parties, the center-left Social Democratic Party and the center-right Austrian People's Party. However, in the general elections held Sept. 29, the euroskeptical and anti-immigrant Freedom Party got 21.4 percent of the vote, while the populist and anti-euro Team Stronach party (which was created only a year ago) got 5.8 percent of the vote. Corruption scandals, accusations of mismanagement and the fear of a worse future are weakening the traditional elites even in Austria, the country with the lowest level of unemployment in the European Union.
These events are taking place in countries that are traditionally considered to be part of Europe's "core" — that is, countries with generally strong economies and low levels of unemployment. The crisis is clearly worsening in the periphery, as evidenced by the growing episodes of violence involving the neo-Nazi Golden Dawn party in Greece and the ongoing political paralysis in Italy. But its movement to the north, where the decision-making of the European Union really occurs, makes it particularly dangerous for the future of the bloc. Europe will hold elections for the EU Parliament by mid-2014. These elections are generally seen as a popularity test for incumbent governments. As moderate parties feel the pressure from their extremist competitors, they are likely to include anti-immigration, anti-EU or anti-euro elements in their political agendas.
The current generation coming of age in Europe is probably the first one since World War II that is not certain that its children will live better it did. People in Mediterranean Europe probably realized this some time ago. That phenomenon is now taking place in the north of the Continent. There is still some degree of political will among traditional elites to strengthen EU integration, but integration isn't solving their growing problems at home. The more the crisis keeps spreading north, the more difficult it will be for national governments to find EU-wide solutions to the crisis.