Politics a decade after the crash
THE effects of the financial crisis in 2008, the 10th anniversary of which is now, are still being felt throughout the world, Ireland included. The repercussions have been significant, not least in the political landscape, which has given rise to events unimagined a decade ago, a significant milestone in which has been the election in the US of President Donald Trump and the associated rise of other authoritarian figures and regimes worldwide, including in Europe, fuelled by a resurgence in brute nationalism that many had hoped had been confined to the dustbin of history.
At the opposite end of the political spectrum is a growing left-wing movement which defines itself as progressive and makes noble arguments in favour of prosperity and justice, but which most loudly condemns the model of social democracy which had been to the fore since the 1980s and now stands accused of being in tactical alliance with, and compromised by, a “globalist establishment” still attached to a “failed capitalist system” and associated ideology.
The increasingly polarised nature of politics has put a squeeze on centrist politics — the so-called Third Way — which has been slow to respond to legitimate questions and, when it does, has not asserted its credentials as determinedly as it should. In Ireland, more than elsewhere in Europe, the centre has mostly held in large part thanks to the deeply embedded nature of Fine Gael and Fianna Fail in society here; however, the Labour Party, in common with many social democrats throughout Europe, has so far failed to recover the position it once held.
The rise of far-right political movements in Europe, some of which hold office, many supported by an oligarchy in Russia, gives most cause for concern, however. While the threat of the far-right in Germany, Italy, France, Austria as well as Hungary and Poland, and most recently in Sweden, should not be overstated — in many cases, voters have pulled back from electing such an extreme to power — it does serve as a timely reminder in this the 10th anniversary of the great crash, that the work of centrists is far from complete. Indeed, the former UK prime minister, Gordon Brown, who warned last week that the world was ‘‘sleepwalking towards a new financial crisis’’, also said that action against financial malpractice has not gone far enough. Fianna Fail’s deputy leader, Dara Calleary and the Finance Minister, Paschal Donohoe, have also made consistent arguments in support of the centre, what Mr Donohoe has referred to as the “radical centre”, including in a recent speech where he argued persuasively in favour of moving from redistribution to ‘‘pre-distribution’’, that is, an increased focus on policies that seek to tackle income inequality before redistribution. This agenda would encompass labour market reforms, education initiatives and wider market reforms that tackle the cost of living.
The public here should also look to recent speeches by the German chancellor, Angela Merkel, who in the Bundestag last week condemned the outbreak of far-right protests in eastern Germany, and, indeed, to the European Union itself whose parliament last week voted to trigger the EU’s most serious disciplinary procedure against Hungary, saying the country’s government posed a “systematic threat” to democracy and the rule of law. While the making of such speeches is to be welcomed, and the passing of such votes significant in itself, centrists must also act with a greater sense of purpose to win the hearts and minds of Europe’s citizens: it is not enough to argue, for example, that unemployment is at a record low or that fewer people are living in poverty. While it is good that the economy is strong, the case for a fairer economy and society, with well paid and secure employment, adequate housing and proper health and education services, is also evident. Perhaps the greatest challenge to centrists everywhere, however, is to achieve real value for all from the great digital revolution around us. It is fair to say that centrists everywhere are, or should be, working towards such an outcome and that a decade after the crash, their work is not done.