Why has Iceland returned to the politicians who caused their crisis?

The centre-right's victory masks growing disaffection with politics.

As Iceland re-elects the parties that led it into the financial crisis and Italy forms its broadest coalition since 1946 to the sound of gunfire, something strange is afoot in European politics. As the economic crisis rumbles on past the five-year mark, traditional party systems across the continent are under strain and contorting themselves into ever-more unusual arrangements to meet the challenge posed by the plunging living standards of their electorates.

In retrospect Britain, which elected its first coalition since World War II in 2010, now looks like a trend-setter. Everywhere one looks across the continent, the financial crisis has upended the old patterns of politics. The "grand coalition" of left and right in Italy is only the latest example of political parties closing ranks against threats to their traditional position – in this case, economic woe and a surge by the anti-establishment Five Star Movement, which may be led by a comedian but proved it was no joke by garnering over 25 per cent of the vote in February’s election.

Meanwhile in Iceland, voters have just returned the centre right to power in the form of the Progressive Party and the Independence Party. These are the parties many blame for getting them into a financial mess in the first place. It was Independence Party Prime Minister David Oddsson who gave Iceland its version of the City’s "big bang" and was central bank governor when the financial crisis struck. That voters would turn back to these old hands – much less in the biggest electoral swing in Iceland’s independent history – is, to put it mildly, a sign of some desperation.

The head of Iceland's Pirate Party – another anti-establishment force which just won its first seats in a national legislature, becoming the first Pirate Party to do so – was rueful about the return of the centre right. "It is the problem of the leftwing," said Birgitta Jonsdottir, a Pirate Party MP. "They clean up the vomit after the cocaine party of the neocons, who go into rehab and then come back to reap the benefits." But the very success of her own movement is a sign of something else – outsiders are increasingly crashing the party.

Europe's national governments all share a basic impotence in the face of the economic crisis and the austerity consensus imposed from Brussels, Berlin and the bond markets. Even Iceland, which has its own currency, is not fully ruler in its own house – and the outgoing government had received many plaudits from outsiders like the IMF. The exact party configurations ruling in each capital are, to an extent, besides the point in the face of this external pressure. Witness how France’s first Socialist government in twenty years is now planning to slash capital gains tax to attract businesses.

This impotence is leading to a general decline of established party systems across Europe. Voters are realising that none of the traditional parties can fundamentally challenge the austerity consensus, and are turning to outsiders who might. Italy's Five Star Movement is one example. Greece's Coalition of the Radical Left (Syriza), which is now the second-biggest party in the country’s legislature, is another. Even UKIP is capitalising on the mess on the continent and economic fears here at home to shake up the British political scene.

As austerity passes into its second half-decade – and as forecasts for when it will come to an end are pushed further into the future – the strain on Europe’s traditional parties will increasingly show.  If Italy’s broadest coalition since World War II and Iceland’s establishment parties cannot deliver economic security to their voters – and there seems little reason to think they can – then what happens next will be unpredictable.  Voters are running out of options near the traditional centres of their politics.

All of this poses the greatest long-term threat to the austerity consensus across Europe, as perhaps leading figures in Brussels and Berlin are starting to realise as they rhetorically distance themselves from austerity and start to talk about how, as Jose Manuel Barroso said recently, the policy has reached the limits of its popular support. But the pull of the consensus – tied up as it is with continued euro membership and the European project as a whole – remains strong.

If European governments of the traditional left and right don’t find a way to keep public confidence in both themselves and the European project alive, then we will see outsiders keep rising and rising until one day they rise all the way into power. Even more worrying is what happens when despair at the political centre becomes despair over the political system as a whole, and starts to find expression in movements like Greece's Golden Dawn or in senseless acts of violence like the shooting of two police officers in Rome. They too are warning signs on the road to an austere future.

Birgitta Jonsdottir, leader of Iceland's anti-establishment Pirate Party. (Photo: Getty.)
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"We are not going to change": Barcelona defies terror with a return to normality

After a attack which killed 14 and injured scores more, shock gives way to defiance and unity.

A perfect summer afternoon in Barcelona suddenly turned into a nightmare on Thursday evening, a nightmare that has become far too common in Europe in recent years. 

“I was having a coffee here [in Plaça Catalunya] and was about to go and walk down there like everyday, because I live just off the Ramblas”, says 26-year-old Eneko de Marcos, pointing down the promenade. “I stayed because I was waiting for a friend, and when she came we heard a big noise and then everyone was running."

Thousands of people, most of them tourists, had been ambling casually along the Ramblas, the most iconic of Barcelona boulevards, which descends from Plaça Catalunya to the old port and the sea, when a white van had mounted the pedestrianised centre of the walk and began driving into people. 

Even after the van came to a stop, leaving a trail of dead and injured in its wake, De Marcos and hundreds of others were trapped for hours inside bars, shops and hotels while the police cordoned off the area and investigated the scene.

Seeing the Ramblas and the surrounding areas completely empty of people following the attack is, for anyone used to the area, unreal and the first reaction for most has been shock. Barcelona had felt safe both to locals and tourists, which had been coming to the city in increasing numbers since last year, many perhaps trying to avoid other destinations in Europe seen as more at risk of attack. 

Shock gave way to confusion and fear during the evening. The van driver was still at large and a series of ugly images, videos and unconfirmed rumours about other attacks spread across social media and the news. The number of victims increased steadily to 13 dead and more than 80 injured of many different nationalities.

At 11pm the city centre and its surroundings were eerily quiet and dark. Few people were venturing on to the streets, and the bar terraces which would normally be packed with people enjoying the late dinners Spaniards are famous for were half empty.

The next morning Barcelona woke up to the news that after 1am that night the Police had stopped a second attack in the touristic beach town of Cambrils, an hour and a half away to the south. What was going on? The streets of Barcelona were still quiet, far too quiet in a city usually noisy and crowded, and again the terraces, so symptomatic of the Barcelona’s mood, were unusually empty.

“I always said something like this would never happen in Barcelona”, says Joaquín Alegre, 76, walking through Plaça de Catalunya the morning after with his friend, Juan Pastor, 74, who nods and agrees: “I always felt safe.”

But slowly fear had given way to defiance. “Afraid? No, no, no”, insists Joaquín. “We’re going to carry on like normal, respecting the victims and condemning the attack, but we are not going to change”, says Juan.

Little by little the Ramblas and the whole area started to fill up during the day. People came from all directions, all kinds of people, speaking all kinds of language. The day was beautiful, the sky was blue, there are no clouds in sight and it got hotter by the minute. It began to look like Barcelona again.

“It’s important not to show fear, that’s what (the terrorists) want”, says Emily, an 18-year-old from Dresden, in Germany, who landed yesterday at Barcelona airport with her mother a few minutes after the attack. She says people were checking their phones while still on the plane and then one girl said aloud there’d been a terrorist attack in Barcelona. “It’s important to come here (to Plaça Catalunya) at this time”, says her mother, Anna, 42, both of them sitting on a low wall at the square.

Next to them, where the Ramblas begins, people once again filled the boulevard full of shops and hotels, which many locals also see as a symbol of how tourism has gone wrong in Barcelona. But Catalans, Spaniards from elsewhere and foreigners mingled happily, feeling united against a common enemy. Many left flowers and lit candles at the feet of a big ornamental lamppost on top of the Ramblas, many others did the same next to the famous Canaletes fountain a little down the promenade. 

“We the people have to respond to this by getting out and taking the streets”, says Albert Roca, a 54 year old publicist, who’s decided to come against the wishes of his girlfriend, who told him he was crazy. “I took a picture of the Ramblas and sent it to her and wrote, ‘Look how many crazy people there are’.”

Just before noon the Mayor of Barcelona Ada Colau visited the Plaça Catalunya with her retinue. She is a very popular figure who comes from civil society in a country where many citizens don’t feel properly represented by traditional politicians. Many people followed her carrying roses, a symbol of Barcelona, while they made their way into the square.

Shortly after, around 100,000 people packed Plaça Catalunya and its adjacent streets for a minute of silence begins for the victims. Only the flapping of pigeon’s wings overhead can be heard. And then an applause and a loud chant break the silence: “I am not afraid! I am not afraid!”, sang the people in Catalan.

Along with Colau in the centre of the square there was Carles Puigdemont, the head of the Catalan regional government and leader of the independence movement that has called for a referendum on 1 October, and along side them, King Felipe as the head of State, and Mariano Rajoy, the Prime Minister of Spain and a bitter political rival of Puigdemont. Seeing them standing together presents an image that until yesterday afternoon would’ve seemed impossible.

Very slowly people start emptying the square, where many still remain singing defiantly. “The attacks yesterday were a disgrace”, says a doorman just outside the city centre as Barcelona began returning to normality, “but we are going to carry on, what else can we do?”