Europe’s Future Depends on Reinventing its Democracies

Even if the EU and its member states have the leadership skills to weather looming storms — from a US-China trade war to rising tensions in the Middle East — the reasons for Europe's recent travails should not be forgotten.

Only through self-reflection can the EU rejuvenate its standing in Europe and the rest of the world.

Rethinking Europe's future also means looking at its democratic life. A passion for working together can only come through political participation and a shared sense of purpose.

All have been eroded, together with a weakening of democratic societies and institutions. Look no further than Hungary, Poland, Italy and Britain for living examples of democracies undermined by the challenges of our time.

To be sure, democracy has been performing badly in the Western world. After decades of improvements, the 2010s delivered the "most severe democratic setback" since the rise of fascism before World War II, in the words of US political scientist Ronald Ingelhart.

The reasons are many and complex.

The ideology of neoliberalism deprived governments of their ability to manage globalisation, with former British Prime Minister Margaret Thatcher's slogan "there is no alternative" serving as a justification for deregulation.

One consequence has been the reduction of the welfare state and pressure on the ability of governments to provide basic services, which at times of sluggish growth or economic contraction has exacerbated inequality across the OECD club of wealthy nations.

Noting that nationalism, globalisation and democracy cannot possibly all exist at the same time, economist Dani Rodrik wrote in The Globalisation Paradox that "hyper-globalisation does require shrinking domestic politics and insulating...

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