Europe’s Fairness Crisis
BRUSSELS – Slowly– far too slowly – politicians in Europe are beginning to understand that the deep crisis gripping the European Union is a game changer. Even an eventual resolution of the eurozone crisis will not bring a return to the established political order. Europe’s crisis is about fairness, with widespread and growing discontent over wealth disparities now being highlighted by cases of real hardship.
The pay and privilege gap between Europe’s rich and poor has been widening since the 1980’s. Most EU countries have targets aplenty on which the public can vent its rage – whether bankers’ bonuses in the United Kingdom, or multinational corporations’ tax rate of less than 6% in Belgium, whose citizens are the most highly taxed in the OECD.
These grievances are exacerbated by austerity policies, and the political consequences are set to be far-reaching. First, the EU itself risks being scapegoated by public opinion as a source of peoples’ economic woes. Second, voters are likely to accept tough spending cuts only from newly elected governments, rather than from incumbent leaders who can be held responsible for the crisis.