Europe revolts against globalization

Or how those hidden behind the curtain have total disdain for the average joe.

This is an edited version of an editorial that appeared in the Washington Post.

European voters are in a testy mood. In Germany last Sunday, an election in the industrial Ruhr region rebuked Chancellor Gerhard Schroeder's ruling Social Democratic party for its economic reforms, even though the opposition conservatives are equally reformist. In France tomorrow, it's not clear whether a referendum will endorse the proposed European Union constitution, even though nearly all of the political establishment is campaigning in favour of it. A Dutch referendum on that constitution, to be held Wednesday, is expected to withhold endorsement, even though all the main political parties are urging a Yes vote.

-- where is the little guy in all of this maneouvering?

These revolts against political elites can be loosely grouped under the heading of backlash against globalization. In the Netherlands, the anti-constitution campaign is fuelled by the loss of Dutch national identity within a growing European Union and also by a fear of immigration. In Germany and France, the backlash is against "Anglo-Saxon" capitalism, meaning pro-market change. Schroeder's government has made it hard for people to collect welfare benefits indefinitely, forcing them to look for jobs; the French have backed away from their government-mandated 35-hour workweek. These reforms have produced pain before gain. Hence the voter backlash.

-- notice the emphasis on immigration, a problem about to become a bomb in Europe. The fiscal reforms as a result of the EC do not jive with the normal euro-socialistic state cares routine. But this is not an anglo conspiracy because England is an outsider in this game. The culprit is somebody else, a small rich and powerful minority.

This comes across most clearly in the case of Germany. Blue-collar workers and the unemployed turned out in record numbers in Sunday's vote to punish Schroeder's party, which had controlled the government of the state of North Rhine-Westphalia for nearly four decades. Schroeder's standing was so diminished that he felt forced to seek an early national election, which will probably take place in September.

-- Good and I hope he is smashed. When the 'hidden hand' totally ignores the average joe he will be made to pay. The hidden hand rushes to meet the deadlines of the controllers but will fail because the changes only cause the citizens pain.

Outsiders have a stake in Europe's economic and political reforms. A defensive, anti-immigrant Europe is less likely to admit Turkey as a member of the European Union, even though admission would bind a major Muslim nation to Western institutions and values. Moreover, slower economic reform and therefore slower growth will make it harder to address the imbalances in the world economy.

-- Especially true when one see's what is going on in Iraq. The Muslim world looks scary to everyone on the outside looking in.

There's a chance that Germany's economic reforms could speed up if the promised election equips one of the major parties with a fresh mandate. But the French political establishment wavers between markets and statism, and a No vote on the EU constitution is likely to damage the reformers. If on top of that a Dutch No vote is read as a revolt against immigration and Turkish accession to the European Union, there won't be much to celebrate.

-- Who is behind the reforms and when did they consult with citizens last? I don't think that Bilderbergers have the right to make all the decisions or any such group.