2019 European Parliament Election

Results Give Rise to Fragmented
New European Parliament

Just as the Europe of the monopolies is fragmented, so too the elections for the new European Parliament have given rise to fragmented results. Both are wracked by rival narrow private interests vying for control over peoples whose nation-states no longer represent their sovereign right to decide matters for themselves. An article in German Foreign Policy reports, for example, on the impact on the European member states of the introduction of the euro, January 1, 1999.

German Foreign Policy reports: "According to a recent study by the Bertelsmann Foundation, German industry, represented by the Federation of German Industries (BDI) is the EU's biggest winner, raking in €86 billion per year, thanks to the common market. Already last February, the Centre for European Policy (cep) pointed out that Germany is the euro's biggest beneficiary: since its launch, the single currency has generated almost €1.9 trillion for the central power, while costing Italy €4.3 trillion. Whereas the BDI speaks of the EU in glowing terms, almost one quarter of the population living in the EU is threatened by poverty and social marginalization."

The annual per capita income growth, for example in Spain (€589), Greece (€401), Poland (€382), or Bulgaria (€193) is much lower than in Germany (€1,024).[1]

"Germany is not only the main beneficiary of the common market, but also the main beneficiary of the introduction of the euro. This has been confirmed by a study published in February by the cep located in Freiburg. The study points out that in 2017, Germany's Gross Domestic Product (GDP) would have been €280 billion less, were it not for the EU single currency. Altogether, from the introduction of the euro, until 2017, Germany has gained almost €1.9 trillion -- or approximately €23,116 per capita.[2] However, cep had also discovered that, of the eight euro countries studied, only the Netherlands also shows a positive result -- a plus of €346 billion up to and including 2017, or €21,003 per capita. France and Italy, on the other hand, were dramatic losers. The French GDP would be €374 billion more, Italy's, even €530 billion more, if the common currency had not been introduced, reports cep. From 1999 -- 2017 France lost a total of approximately €3.6 trillion (€55,996 per capita). During the same period, Italy lost more than €4.3 trillion (€73,605 per capita)."

In 2017, according to Eurostat, the EU's statistics authority, 22.5 per cent of the Union's population were threatened with poverty and social marginalization[3] -- a mere 1.2 per cent fewer than nearly ten years earlier (2008: 23.7 per cent). In 2017, the proportion of those in the EU, who were still classified as poverty-threatened, after having received their social welfare payments, was at 16.9 per cent -- higher than in 2008 (16.6 per cent). Only seven EU countries had successfully lowered their 2008 proportions, while in 19 EU countries these had risen further. According to Eurostat, in 2017, 6.9 per cent of the population in the EU suffers from "considerable material deprivation." The figures refer to the nationally determined risk-of-poverty thresholds, whose low-levels are themselves but further indications of the gap in prosperity that exists within the Union. Whereas in Germany, in 2017, poverty-threatened signified having less than €13,152 annually, in Greece -- with similar living expenses in various aspects -- only those with less than €4,560 annually were considered poverty-threatened. In Lithuania the 2017 threshold was at €3,681, and in Bulgaria, €2,150. As mentioned above, the German economy's umbrella organizations refer to the EU as a "realm of prosperity [...] with a high level of social responsibility."[4]

"Many of the east and southeast European countries have become low-cost production sites for German companies, which has fueled the German industry's enormous export success, if not made it even possible. German trade with the entire region is booming. The commodity exchange between Germany and the Visegrád group (Poland, Czech Republic, Slovakia, Hungary) in 2017 was at around €256 billion -- significantly more than trade with China (approx. €170 billion). A significant portion of Germany's Visegrád trade is comprised of delivery exchanges between German plants in Germany with their subsidiaries in Visegrád countries. Thanks to its geographical location in the heart of the continent, and its historically developed relations, Germany has profited more than all other EU countries from the eastward expansion. Great Britain on the EU's western outskirts offers an example of the contrary. As experts from the German Economic Institute (IW, Cologne) reported in October, Great Britain 'benefited little' from the EU's eastward expansion. Therefore, it plays 'a significantly smaller role' than Germany in the Union's production chains.[5]"

The EU remains the German economy's most important sales market. In 2017, Germany exported around €750 billion to other member countries of the Union -- 58.6 per cent of its total exports, accumulating thereby an export surplus of nearly €160 billion.[6] These enormous advantages explain the overwhelming majority of German entrepreneurs' satisfaction with the Union -- in spite of the growing dissatisfaction spreading through sectors of Germany's medium-sized economy.[7]

Election Results

The European Union elections were held in Europe's 28 member states, compared to 12 members in 1994. Voter turnout was said to be 50.5 per cent, the highest in 20 years. The European People's Party (EPP) won 180 seats (down 35 from 2014), and the Progressive Alliance of Socialists and Democrats (S&D) won 146 (down 40 from 2014). Their combined 326 seats fall short of a majority in the 751 member parliament.

Media reports are describing a "Green Wave" with the Greens increasing their seats from 50 to 67, thanks to a strong showing in Germany and France.

In Germany, the Green party nearly doubled its 2014 vote share to take second place with 20.5 per cent of the vote.

In France, President Emmanuel Macron's La République en Marche (LREM) party and Marine Le Pen's National Rally enter the new European Parliament with 23 seats each. National Rally is said to have captured a record number of votes (5.3 million, up from 4.7 million in 2014), more than LREM's 23.3 per cent of votes cast. Yannick Jadot's Europe Ecologie les Verts took third place with 13.5 per cent of the vote, "a significant increase over their 9.9 per cent vote share in 2014 and over pre-election polling.

In Italy, "Matteo Salvini's far-right League party cemented its hold on the electoral landscape with 34.3 per cent, to the detriment of its coalition partner in national government, the Five-Star Movement, which claimed half as many votes (17.1 per cent) to come in third, France 24 reports. Former Prime Minister Silvio Berlusconi's Forza Italia claimed less than nine per cent of votes.

In Austria, the big winner of the European elections is said to be Chancellor Sebastian Kurz. "In the midst of a government crisis over a corruption scandal of his coalition partner, his party, the ÖVP, increased its share of the vote by seven per cent [and] will thus have up to seven seats in the new European Parliament. Meanwhile, in the Czech Republic, the ANO party of populist Prime Minister Andrej Babis won the most votes despite the fact that Babis is facing fraud charges involving the use of EU funds. The same goes for Bulgaria's PM Boyko Borissov whose GERB reasserted itself despite recent scandals," EURACTIV.com writes.[8]

In Greece, "Prime Minister Alexis Tsipras, following massive defeats to the conservative opposition New Democracy party (EPP) in EU and local elections, announced snap elections, most probably due on June 30."

The "whole European Left saw a drop in their representation, going from 52 to 39 seats."

"The Polish opposition movement European Coalition, comprised of the Civic Platform (PO), formerly led by European Council President Donald Tusk, and a group of leftist and rural parties reached a hefty 38.3 per cent, but was still behind the ruling PiS. The fact that the united opposition still did not manage to trump the governing party is a defeat in itself. The narrow result directly puts the two camps on a collision course for the national polls in autumn, which for now does not bode well for the opposition camp."

In Hungary, Prime Minister Viktor Orbán's Fidesz party "was virtually the only party on the continent to win an outright majority, with 52.3 per cent of the vote. The only other party to do so was the Labour party of Malta."

In Britain, Nigel Farage's new Brexit Party, topped the poll with 31.7 per cent of the vote and won 29 of Britain's 73 seats. The Conservative Party garnered only 8.7 per cent of votes, while Jeremy Corbyn's Labour Party took 14.1 per cent. The Liberal Democrat and Green parties are also said to have posted "historically strong results."

France 24 put it this way: "Sunday's election results are set to reshape the EU's governing coalition, as far-right parties and pro-European greens and liberals each make big gains at the expense of the establishment left and right."[9]

Notes

1. Giordano Mion, Dominic Ponattu: Ökonomische Effekte des EU-Binnenmarktes in Europas Ländern und Regionen. Herausgegeben von der Bertelsmann Stiftung. Gütersloh, 2019.

2. Alessandro Gasparotti, Matthias Kullas: 20 Jahre Euro: Verlierer und Gewinner. Eine empirische Untersuchung. cepStudie. Freiburg, February 2019.

3. Abwärtstrend beim Anteil der von Armut oder sozialer Ausgrenzung bedrohten Personen in der EU. Eurostat Pressemitteilung 159/2018. Brüssel, October 16, 2018.

4. Gemeinsamer Appell der deutschen Wirtschaft: Wirtschaft für Europa. bdi.eu, September 5, 2019.

5. Michael Hüther, Matthias Diermeier, Markos Jung, Andrew Bassilakis: If Nothing is Achieved: Who Pays for the Brexit? Intereconomics, May 2018, 274-280.

6. EU weiterhin mit Abstand wichtigster Handelspartner Deutschlands. handelsblatt.com May 7, 2018.

7. See also "Europas Achsen," german-foreign-policy.com, July 3, 2018.

8. "Farage tops poll and Remain parties surge as EU polls spell out UK's divide," Benjamin Fox, EURACTIV.com, May 27, 2019.

9. "Populist push, green wave, establishment in turmoil: a round-up of the EU elections," France 24, May 28, 2019.

(German Foreign Policy)


This article was published in

Volume 49 Number 22 - June 15, 2019

Article Link:
2019 European Parliament Election: Results Give Rise to Fragmented New European Parliament


    

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