The electoral consequences of the financial and economic crisis in Europe

The electoral consequences of the Great Recession are analysed in this article by combining insights from economic voting theories and the literature on party system change. Taking cues from these two theoretical perspectives, the impact of the Great Recession on the stability and change of Western, Central and Eastern European party systems is assessed. The article starts from the premise that, in order to fully assess the impact of the contemporary crisis, classic economic voting hypotheses focused on incumbent parties need to be combined with accounts of long‐term party system change provided by realignment and dealignment theories. The empirical analysis draws on an original dataset of election results and economic and political indicators in 30 European democracies. The results indicate that during the Great Recession economic strain was associated with sizable losses for incumbent parties and an increasing destabilisation of Western European party systems, while its impact was significantly weaker in Central and Eastern European countries, where political rather than economic failures appeared to be more relevant. In line with the realignment perspective, the results also reveal that in Western Europe populist radical right, radical left and non‐mainstream parties benefited the most from the economic hardship, while support for mainstream parties decreased further.     

Increased economic salience or blurring of responsibility? Economic voting during the Great Recession

There is a puzzle which emerged following the Eurozone crisis: whereas the salience of the economy suggests an increase in economic voting, the realization that economic policies have become Europeanised may blur the responsibility of national governments, thus decreasing economic perceptions' weight on electoral choices. Do these mechanisms exclude each other? Do they refer to different groups of the electorate? We first examine the longitudinal trends of economic voting from 2002 to 2015 in three bailed out countries, namely Ireland, Portugal and Spain, to see if the economy's salience during the Great Recession increased the relevance of the economic perceptions in these countries. Secondly, making use of a unique media dataset of the last 16 years we test whether exposure to major mainstream newspapers that focus on the EU mitigates economic voting. On average, economic voting increased following the crisis. However, individuals who are more informed about the EU tend to use economic voting to a lesser extent, given they are more aware of the national government's limited room for manoeuvre.     

The impact of EU intervention on political parties’ politicisation of Europe following the financial crisis

Abstract

This article examines the effect of the financial crisis and economic intervention by the European Union on political parties’ politicisation of the EU within national elections. Data from the Manifesto Project for elections between 2002 and 2017 in 12 Eurozone countries is used to assess how the crisis and intervention altered the saliency, position and clarity of parties’ EU policies. The analysis shows that the crisis only led to an increase in EU saliency in those states not subjected to intervention whilst intervention is actually associated with a decrease in the saliency of the EU. In terms of increasing Euroscepticism, intervention appears to exhibit a greater effect than the crisis although the results display marked asymmetry between different parties on the left and right. The same is observed to be the case for the level of blurring that parties are engaged in to mask their EU positions. The implications of the findings suggest that economic intervention within the EU has negatively impacted democracy in intervened-in member states by reducing the manoeuvrability of parties to provide voters with clear choices on the direction of European integration.     

Red Europe versus no Europe? The impact of attitudes towards the EU and the economic crisis on radical-left voting

The 2014 European Parliament election saw a relatively large increase in the size of radical-left parties (RLPs), particularly in Western Europe. This article aims to provide new ways of thinking about the dynamics of radical-left voting by analysing the changing role of attitudes towards the European Union in explaining support for RLPs at European Parliament elections during the Great Recession. It is argued that the Europeanisation of economic issues during the financial crisis, together with the particular kind of Euroscepticism advocated by these parties, have enabled them to successfully attract a heterogeneous pool of voters. Using the 2009 and 2014 European Election Studies, it is shown that the effect of negative opinions about the EU on support for RLPs increased significantly during the crisis. In addition, support for RLPs also increased among voters with positive views of the EU who were nevertheless highly dissatisfied with the economic situation.     

The Elections of the Great Recession in Portugal: Performance Voting under a Blurred Responsibility for the Economy

Abstract

This article discusses the basic patterns of voting behaviour in the most recent elections in Portugal. These elections were fought under one of the most profound economic crises in the country's four decades of democracy, after a bailout agreement with the EU and the IMF, and under an unusually high level of campaign polarization around the issues of economic austerity and liberalization. First, the article examines whether this context ended up being favourable to “performance” voting or, instead, to an enhanced importance of position issues, particularly those related to the role of the state in the economy and welfare provision. Second, it examines how the context of the Great Recession and the European sovereign debt crisis created opportunities for incumbents to use blame-shifting and blame-sharing strategies, and the extent to which voters' ambivalence about who to hold responsible for the sorry state of the economy was consequential for vote choices, either by directly affecting them or by moderating the relationship between economic perceptions and the vote.     

Dynamics of protest and electoral politics in the Great Recession

This article links the consequences of the Great Recession on protest and electoral politics. It innovates by combining the literature on economic voting with social movement research and by presenting the first integrated, large-scale empirical analysis of protest mobilisation and electoral outcomes in Europe. The economic voting literature offers important insights on how and under what conditions economic crises play out in the short-run. However, it tends to ignore the closely connected dynamics of opposition in the two arenas and the role of protests in politicising economic grievances. More specifically, it is argued that economic protests act as a ‘signalling mechanism’ by attributing blame to decision makers and by highlighting the political dimension of deteriorating economic conditions. Ultimately, massive protest mobilisation should, thus, amplify the impact of economic hardship on the electoral losses of incumbents and mainstream parties more generally. The empirical analysis to study this relationship relies on an original semi-automated protest event dataset combined with an updated dataset of electoral outcomes in 30 European countries from 2000 to 2015. The results indicate that the dynamics of economic protests and electoral punishment are closely related and point to a destabilisation of European party systems during the Great Recession.     

Making Sense of Greek Austerity

The process of approving a Greek drawing on funds provided by the international community is now familiar. There is concern about the prospect of securing an agreement between the International Monetary Fund (IMF), the European Union (EU), the European Central Bank (ECB), and Greece, which satisfies all parties. This paper suggests that all parties to the agreement have interests in an orderly resolution of the Greek crisis that keeps Greece in the Eurozone. Furthermore, it argues that disagreements and delay before eleventh‐hour agreements can best be explained politically. The paper first demonstrates how Greece, the IMF, and the EU each have a clear interest in finding an orderly solution to the Greek crisis that allows it to remain in the Eurozone. It then outlines the incremental nature of the package and its strategic benefit both for the European banking sector, and governments in Greece and the Eurozone more broadly.     

Implementing Social Europe in Times of Crises: Re-established Boundaries of Welfare?

This volume examines the state of social Europe when European Union principles and policies have to be implemented in the member states while the EU legitimacy crisis and the Great Recession prevail. The volume explores diverse processes, stages and subjects of implementation in a variety of social policies to identify different institutional dynamics and actor behaviours at play. The individual contributions examine the transposition of the patients’ rights directive to the Europeanisation of pension reforms; the role of national parliaments in transposing social Europe; judicial Europeanisation; and the multi-level enforcement of EU decisions. Theoretically, the volume highlights that implementation is often conditioned by domestic politics or comes as a ‘random walk’ due to organisational and cognitive constraints. Empirically, the volume has three main findings. First, the constitutive components of the EU tend to have a contradictory impact on the EU’s social policies and the national welfare systems. Second, crises influence the implementation of social Europe, at times leading to a modification of fundamental principles and content, but not across the board. Third, as a result, there is evidence of differentiated Europeanisation.     

Economic crisis and elections: The European periphery

This paper introduces the articles in the symposium which address the issue of democratic accountability and economic voting in polities on the European periphery. The economic crisis that hit the world economy in 2008 has severely challenged the capacity of governments to steer the national economy and has had a strong impact on their electoral support. The papers discuss whether economic voting and democratic accountability are increasing or, on the other hand, they could be depressed by globalisation and by shifts of ruling competence from the national to the supranational European arena.     

Income inequality and election outcomes in OECD countries: New evidence following the Great Recession of 2008–2009

Using data on national parliamentary election outcomes in 32 OECD countries from 1975 to 2013, we investigate the importance of economic voting. We focus on the relevance of income inequality which has resurfaced to the forefront of public debate since the last global economic downturn. Additionally, we examine whether the degree of economic voting varies with the political orientation of the incumbent government. Finally, we check whether the Great Recession of 2008–2009 alters the degree to which voters hold the incumbent government, specifically left parties, responsible for poor economic performance and rising inequality. We find that economic growth is the most robust variable for economic voting, before and after the Great Recession. The vote share for left-leaning parties declines when income inequality rises during normal economic times. However, voters are more likely to vote for left-wing incumbents if domestic income inequality and unemployment rate rose during the Great Recession.     

Technocratic attitudes and voting behaviour ten years after the Eurozone crisis: Evidence from the 2019 EP elections

The onset of the Great Recession raised the profile of technocracy, or government by experts, as a contrasting model to democracy. Yet, there is little research on how attitudes towards technocracy may impact European citizens' political behaviour. Moreover, the consistency of technocracy supporters' political attitudes, especially towards the EU, is questionable. This paper uses new survey panel data collected before and after the European parliament elections in May 2019 in six countries (Belgium, Germany, Greece, Ireland, Portugal and Spain). We investigate how citizens’ technocratic attitudes affect their voting behaviour in the European elections. We find evidence that citizens with technocratic attitudes are less likely to support mainstream parties, and tend to either abstain or, if they vote, to give their vote to anti-system parties, especially from the populist right. In addition, by distinguishing technocracy supporters according to their partisanship, we conclude that technocracy is a thin ideology that can be combined with different patterns of political support: while many technocracy supporters have no party identification or support non-mainstream parties and show dissatisfaction with democracy and the EU, another subgroup of technocracy supporters identifies with a mainstream political party and show above average political support and support for the EU.     

The Europeanization of national elections. The role of country characteristics in shaping EU issue voting

Research has shown that voting in European elections is affected by domestic politics. However, in the last years, and particularly after the European debt crisis, also the EU has gained relevance and salience in national politics. In this paper we address the Europeanization of national elections and assess to what extent the characteristics of countries condition the intensity of EU issue voting. Using data from the European Election Studies and the Comparative Manifestos Project, our results demonstrate the importance of congruence between citizens' and parties’ positions on the EU for the individual vote on the national level and show how this varies across countries. We provide evidence that EU issue voting is more intense in countries with more political influence in the EU as well as in countries that are net contributors to EU funds.     

Challenging business as usual? The rise of new parties in Spain in times of crisis

The two-party system in Spain collapsed in the aftermath of the Great Recession with the appearance of two new parties, Podemos and Ciudadanos. How are we to understand the sudden emergence of these new formations? Using 2015 and 2016 post-electoral survey data to map the ideological space and model voting behaviour, it is shown that economic voting is only part of the story. This article contends that the transformations in the Spanish party system are best understood through the prism of the crisis of representation that unfolded alongside the severe economic crisis. It is dissatisfaction with the political system that drives the vote for both new parties. The results also show that a unidimensional ideological structure and a generational divide cut across these critical attitudes. The young and politically dissatisfied are more likely to vote for new parties, each on different sides of the ideological spectrum.     

Economic voting in provincial elections: Revisiting electoral accountability in the Canadian provinces

ABSTRACT

We examine the outcomes of the provincial elections having been held in Canada since the Great Recession and compare them with outcomes from past decades. Given the severity of the 2008 financial crisis, we test for whether provincial governments’ electoral fortunes over the recent period have been negatively impacted by this important economic shock. Our analyses of aggregate-level provincial electoral outcomes: (1) confirm that provincial incumbent parties are held accountable for provincial economic conditions; (2) show that this provincial economic voting pattern has been heightened during the financial crisis; and (3) demonstrate that provincial incumbents also incur vote share losses when national economic conditions worsen and their respective family party is in power at the federal level, although this referendum voting pattern appears to have been unaffected by the financial crisis.     

Parallel publics? Support for income redistribution in times of economic crisis

This article investigates the dynamics of support for income redistribution in Europe. With European Social Survey data spanning 2006 to 2012, it assesses whether the Great Recession resulted in substantial parallelism or increasing polarisation in preference change across various sub‐publics. After introducing hypotheses based on claims that social groups are affected differently by economic insecurity, the article proceeds in two empirical sections. First, whereas prior research suggests that hard times fuel diverging attitudinal patterns, it is found that income groups, ideological groups and educational groups did not shift differently over time during the first years of the crisis, thus providing strong evidence for the ‘parallel publics’ hypothesis in the European context and in times of economic turmoil. Next, the article addresses the extent to which change in aggregate support for redistribution came from changes in small minorities of the population, supposed to be more responsive to their economic environment. Using multilevel analysis, it is shown that the most educated significantly contributed to the overall change more than the others. As a result, they may have been partly driving the economic mood during the first years of the Great Recession.     

International Constraints and Electoral Decisions: Does the Room to Maneuver Attenuate Economic Voting?

Prominent studies of electoral accountability and economic voting suggest that government constraints and international financial structures decrease the economic vote. The proposed mechanism is often labeled as the “room to maneuver,” and it posits that because elected officials have limited space to propose and implement economic policy, politicians can shirk responsibility, and thus voters are less likely to place voting weights on the economy. However, results from elections that took place in Europe during the Great Recession and scholarly research on economic voting in these elections cast serious doubts on the causal mechanism. This article directly tests this mechanism with a survey experiment using data from Greece (the country most affected by the debt crisis). The results suggest that although the economic vote is strong and substantive, its size does not vary across the room to maneuver treatments. This finding informs the literature on economic voting and carries out important implications for party strategies with respect to exogenous policy impositions and their electoral effects.     

Lack of European Identity and the Failure of the Eurozone

Since late 2007, the Eurozone has been embroiled in a crisis that has seen GDP per capita stagnate, public debt soar, and unemployment reach record levels. This article argues that the Eurozone crisis will inevitably force fundamental changes in the structure of the EU. The only way to make the Eurozone work is through deeper fiscal integration of Eurozone economies. Yet wholesale fiscal integration cannot be achieved in the near term, due to the fact that EU citizens continue to identify more with their own nationalities than with Europe as a whole. The Eurozone economies of southern Europe will, therefore, continue to flounder, leading to further anti‐EU sentiment. Anti‐EU sentiment may eventually increase up to the point where one or all of these countries leave the Eurozone or the EU altogether. These propositions are supported with arguments from economic theory, and are bolstered by evidence from surveys and opinion polls.     

Understanding varieties of populism in times of crises

Abstract

This introduction presents the conceptual and analytical framework which constitutes the background for the special issue entitled ‘Varieties of Populism in Europe in Times of Crises’. More specifically, this contribution investigates how different populist parties in the European Union have been affected by the recent economic crisis and the more long-lasting political and cultural crises. Analytically, the article disentangles the role of the Great Recession vis-à-vis other factors (such as political and party system factors, but also structural social changes or cultural opportunities) in the growing strength of populist parties in various European countries. It argues that although the economic crisis has without any doubt provided a specific ‘window of opportunity’ for the emergence of new political actors, which have capitalised on citizens’ discontent, long-lasting political factors – such as the increasing distrust toward political institutions and parties – and the more recent cultural crisis connected with migration issues have offered further fertile ground for the consolidation of populist parties in several European countries. Furthermore, as confirmed by the articles presented in the special issue, the various crises have offered differential opportunities for different types of populism – both inclusionary and exclusionary.     

Democracy in crisis? The declining support for national democracy in European countries, 2007–2011

The Great Recession that started in 2007/2008 has been the worst economic downturn since the crisis of the 1930s in Europe. It led to a major sovereign debt crisis, which is arguably the biggest challenge for the European Union (EU) and its common currency. Not since the 1950s have advanced democracies experienced such a dramatic external imposition of austerity and structural reform policies through inter‐ or supranational organisations such as the EU and the International Monetary Fund (IMF) or as implicitly requested by international financial markets. Did this massive interference with the room for maneuver of parliaments and governments in many countries erode support for national democracy in the crisis since 2007? Did citizens realise that their national democratic institutions were no longer able to effectively decide on major economic and social policies, on economic and welfare state institutions? And did they react by concluding that this constrained democracy no longer merited further support? These are the questions guiding this article, which compares 26 EU countries in 2007–2011 and re‐analyses 78 national surveys. Aggregate data from these surveys is analysed in a time‐series cross‐section design to examine changes in democratic support at the country level. The hypotheses also are tested at the individual level by estimating a series of cross‐classified multilevel logistic regression models. Support for national democracy – operationalised as satisfaction with the way democracy works and as trust in parliament – declined dramatically during the crisis. This was caused both by international organisations and markets interfering with national democratic procedures and by the deteriorating situation of the national economy as perceived by individual citizens.     

The Eurozone crisis and the European corporate elite: bringing corporate actors into focus

This paper uses a framework referred to as the ‘corporate reconstruction of European capitalism theory of integration’ to analyse the European Union’s response to the Eurozone crisis. Most political economy analyses of the Eurozone crisis have focused on political leaders, clashes between creditor and debtor member states and public opinions in analysing the handling of the crisis. This paper focuses instead on the input of corporate actors. It is argued that both the setting up of the European Monetary Union (EMU) and the handling of its crisis were congenial to corporate preferences. Europe’s nascent corporate elite was concerned with eliminating currency risk when the EMU was set up and therefore did not push for fiscal federalism. When the flawed architecture of the Eurozone transformed that currency risk into sovereign credit risk, corporate preferences adapted and now favoured fiscal liability pooling and ultimately the setting up of a fiscal union.