Deutsche Bank Research European Elections Outlook: Profiles of Eurosceptic Populist Parties May 2014 Position Deutsche Bank Kundenlogo Research European Elections Outlook Profiles of Eurosceptic Populist Parties Eurosceptic parties on the rise Party Poll AT FPÖ 20% FR Front National 22% DE AfD 6% GR Syriza 26% IT Forza Italia 20% IT Five Stars 24% NL PVV 15% UK UKIP 25% — Overall characteristics — Criticism of EU centralism, red tape and the allegedly rising tide of regulation — Self-conception as parliamentary opposition to the national “establishment” — Europe has become a topic only in the course of the financial and debt crisis — Differentiation is necessary — Left-wing and Right-wing — Opposition degree: Moderate vs. radical Source: pollwatch2014.eu Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 1 Profiles of Populist-Eurosceptic Parties Most eurosceptic parties have only few objectives in common o Sovereignty back to nation states – strengthen intergovernmental elements o Criticism of allegedly bureaucratic, inaccessible EU policies o Involve financial institutions in bearing the costs of the crisis o Migration/immigration issues Therefore, most populist groups o are imprecise in their manifestos o are inconsistent in their allegations and proposals as most of the party manifestos are skewed towards national interests o show a low consensus orientation due to focus on national sovereignty o show a lack of professional experience: 7 out of 28 eurosceptic parties not yet in the EP, other parties only with small splinter faction without the institutional support of a parliamentary group Irrespective of the election result the future influence of eurosceptics remains open. 1 The subsequent summaries of the parties‘ positioning ahead of the European Elections were compiled from election manifestos and press reports on the parties‘ long term agendas. Forza Italia is not listed in the summary as the party has not yet published an election manifesto for the upcoming European elections. Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 2 Influence of eurosceptics in EP – don’t panic! Consensus among established “party families” in the Parliament Consensus voting in percent from 2009 to 2013 — Only formation of a political group ensures higher financial support, representation in committees and right to propose resolutions for approval Budget — Extreme-right parties intend to form a political group against “EU centralism” — FN, FPÖ, PVV, Lega Nord, Vlaams Belang, Swedish Democrats and Finns Party could ally (more than) 25 MEPs from 7 countries – the minimum requirement for a political group Institutional issues Social issues and employment Environment 0 20 40 GUE-NGL Grüne/EFA S&D EVP ECR EFD 60 80 100 ALDE Source: VoteWatch Europe/ Notre Europe Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties — Regarding current polls, a right-wing populist parliamentary group cannot be excluded. However, keeping the group together could become challenging given national particularist interests 3 European Elections 2014: Populist Election Manifestos Party Euro EU Role of the Country in Europe/Migration issues FPÖ (AT) •Return to the Shilling, preferably in a hard currency union with Germany and other core countries •Exit EFSF/ESM •Exit from EU justified if further European integration process disregards principle of subsidiarity •Return to EFTA/EEA •New major contractual agreement that will be voted on in a referendum (comprehensive proposal for new set of European institutions) •Federal Europe of nation states •No membership for Turkey •Core Europe of the Net Contributors •Rejection of multiculturalism •strict limits on immigration from countries outside the EU Vlaams Belang (BE) •Despite all advantages of the Euro (transaction cost, exchange rate risk), the cost of keeping the Euro is higher than dissolving the euro area. •Either a new limited currency union or national currencies as the only sustainable solution. •Intergovernmental cooperation in order to prevent any dominance of bigger over smaller countries •Exit from EU: Norway and Switzerland show that smaller countries can also do it alone •Flanders could become a similar political actor in the EU such as Austria, Denmark, Finland or Sweden. •Repatriation of immigrants who “reject, deny or combat Flemish culture.“ AfD (DE) •Dissolution and/or reorganization of the euro area with two options: (1) Right for single countries to exit the EMU. (2) Right for core countries to form a new exchange rate system similar to ERM II. If none of these options can be achieved, Germany should leave the EMU. •Back to No-Bailout-Principle •Dissolve ESM, end OMT •ECB voting rights according to capital key. •No TTIP that burdens Europe •No fiscal socialization of any liabilities arising from bank resolutions • 25% equity ratio for banks •Competence review: Consolidation before further enlargement Decentralization of policies wherever possible •Reduction of he Common Agricultural Policy Budget down to zero by 2024 •Sovereign insolvency mechanism • Strict adherence to subsidiarity principle •Increase of information transparency on euro bailout policies as a basis for the formation of democratic will. •Stricter asylum policies, requirement that asylum seekers remain in the countries where they applied for asylum first. Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 4 European Elections 2014: Populist Election Manifestos Party Euro EU Role of the Country in Europe/Migration issues Fins (FI) •Diminish common responsibility on economic issues in the Euro area •Respect the No Bailout Clause •No mutual guarantees for bank resolution •Aims to foster discussion of various options on the future of the Euro •Against central governance that interferes too much with day-to-day life •Competence review, redraft of European treaties •Reduce power of the Commission •Decentralized Europe of nations •Limit humanitarian immigration to refugee quotas that correspond with economic situation •Limit family unifications, deport immigrants guilty of serious or recurrent crimes •Welcome work-based immigration Front National (FR) •Calls for an ordinary plan to deconstruct EMU in order to achieve competitive devaluations •No austerity to safeguard the euro •Controls to limit financial speculation •Renegotiation of European Treaties in order to give sovereignty back to the nations •Abolish current institutional pattern, disempower the Commission which is not democratically legitimized •Zero contributions to the European budget •Decentralized Europe of nations •Mainly caimpaigns against Muslim immigration •Deportation of illegal, criminal,and unemployed immigrants •Plebiscites on immigration policy similar to Switzerland UKIP (UK) N/A • Amicable EU-Exit • Free trade deal with the EU as UK is the biggest customer of the EU • No political union • Escape from EU-regulation on business, employment, financial services, farming, energy and trade that allegedly harm the UK • re-introduce border controls • re-establish national immigration laws to ensure that domestic employees do not lose their jobs to foreigners and that the National Healthcare System is not overstrained Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 5 European Elections 2014: Populist Election Manifestos Party Euro EU Role of the Country in Europe/Migration issues PVV (NL) • EMU exit: Back to the Dutch Guilder • Exit from ESM •Exit from EU, bilateral trade agreements similar to Switzerland •Reduce net contributions to zero •Plebiscites on every EU plan that constrains national sovereignty •All former veto rights back to the Netherlands •Limit free movement of workers •No new EU members •Stop any immigration from Muslim countries, limit immigration from Eastern European countries • Contact points for reporting immigrants who commit crimes and/or squeeze out the local labour force. • Withdraw from the Schengen agreement SYRIZA (GR) •No euro Exit, but (1) relieve current victims of the crisis, (2) ensure stabilization and recovery, (3) reforms legitimized by plebiscites • Withdraw from the MoU regarding the Greek rescue packages. Renegotiation of interest payments for support loans and suspension of loan repayments until the economy has revived and growth and employment return. •Demand the European Union to change the role of the European Central Bank so that it finances states and programs of public investment. •Intergovernmental cooperation in economic affairs. •Shift the burden of economic adjustment from the society to banks and creditor countries. •Social inclusion of immigrants and equal rights protection between genders •Restoration of a strong welfare state Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 6 European Elections 2014: Populist Election Manifestos Party Euro EU Role of the Country in Europe/Migration issues Lega Nord (IT) • Immediate EMU exit: Italy needs a new currency that reflects the current economic situation of the country • Membership in the EMU harms the Italian economy • No single European rule of austerity could ever benefit Italy better than the ability of Italy to reacquire competitiveness in export markets due to competitive devaluations according to the productivity of companies • End the democratic deficit of the EU as a „medieval empire“ • Renationalize EU competences regarding (1) defence, (2) external policy, (3) monetary policies, (4) fiscal policies • Possibility of national opt-outs • No further enlargement • Migration: Give competences relating to migration back to nation states • Direct cooperation of those countries that are most affected by illegal immigration – without interference from Brussels • Rejection of the merely economic understanding of European integration: Support national and regional identities and a Europe of diverse cultures Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 7 Contact: European Policy Research Barbara Böttcher See also: Head of European Policy Research Phone: +49 69 910-31787 [email protected] Nicolaus Heinen Phone: +49 69 910-31713 [email protected] Stefan Vetter Phone: +49 69 910-21261 [email protected] Deutsche Bank Research European Elections Outlook Profiles of Eurosceptic Populist Parties 8 Disclaimer © Copyright 2014. 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