Golden Dawn fascists are not just Greece's problem

Europe will turn to angry nationalisms unless an alternative to austerity is found.

It was an unwelcome echo of Europe’s past: as black-clad henchmen barked instructions at journalists, ejecting those who refused to show “respect” by standing up, Nikolaos Michaloliakos, the greying leader of Greece’s neo-Nazi Golden Dawn, hailed his party’s unprecedented entry into parliament. Waving his fists like a practiced demagogue, he threatened retribution “for those who betray this homeland”. Then came a promise: “The Europe of the nations returns. Greece is only the beginning.”

The sudden emergence of Golden Dawn – an obscure fringe party only a year ago but which won 21 seats in Sunday's general election – is the latest symptom of political turmoil to hit Greece as it struggles to cope with EU-imposed austerity. Mainstream parties have fallen like dominoes as Greek voters, angry at being punished by a fiscal compact that protects northern Europe’s wealthier economies, look for politicians that have not been tarnished by compromise with the Brussels elite. Many have turned left, but 7 per cent of voters chose Golden Dawn, which promises to “clean” Greece of immigrants and boasts a swastika-like emblem on its flag. In the words of one Greek Jewish leader, “They don’t deny the Holocaust – they desire it.”

The spectacle has made outside observers shudder, while the millions of Greeks who did not vote for Golden Dawn are justifiably revolted. Greece has not suddenly turned to fascism – and although Michaloliakos was a supporter of the military junta that ruled the country from 1967 to 1974, there is no special darkness within the Greek psyche that lends itself to extremist politics. Golden Dawn’s gains, which can be reversed, were achieved with techniques employed by the far right in other countries. It stood “ordinary” candidates – members of the public who had been drawn to the party in recent months – for election, and it won some support  by imposing vigilante patrols in urban neighbourhoods. As in other countries, they have been challenged every step of the way by Greek anti-racists.

Golden Dawn's scapegoating of immigrants is widely shared, too. Across Europe, the financial crisis has inflamed tensions between a global market, a multinational EU, and nation states that still count on patriotism as a social glue. Migrants have thus become a lightning rod for all manner of anxieties. The difference is that Greece feels these more acutely, battered by five continuous years of recession and sitting on the EU’s porous border with Turkey. Frequently, migrants are sent back to Greece from other EU countries to rot in poorly maintained detention centres or left destitute in a country where one in five is unemployed. The fate of 200 African migrants left to drown in the Mediterranean last year by Nato forces – possibly including a British helicopter – suggests we are all capable of such callousness. This is not Greece’s dirty secret: it is all of ours.

The success of Golden Dawn is a tragedy for migrants and a painful dead end for their voters who will find them a quack cure for their country’s ills. There’s a grain of truth in Golden Dawn’s call for Greece to be freed from “the slavery of the bailout agreement” and voters will continue to seize on it until a viable alternative is found.

Left-wing parties are now struggling to find enough common ground to form a government and fresh elections may have to be held next month. The challenge is to find a solution that brings stability while fulfilling the egalitarian principles the EU project aspires to. Otherwise, the future is one of angry, reactionary nationalisms – and, perhaps, if groups like Golden Dawn are allowed to keep a foothold in democratic politics, something even more vicious.

Members of the Greek neo-Nazi Golden Dawn Party celebrate out of their office in Thessaloniki on 6 May, 2012. Photograph: Getty Images.

Daniel Trilling is the Editor of New Humanist magazine. He was formerly an Assistant Editor at the New Statesman.

Photo: Getty
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As long as the Tories fail to solve the housing crisis, they will struggle to win

The fall in the number of homeowners leaves the Conservatives unable to sell capitalism to those with no capital. 

For the Conservatives, rising home ownership was once a reliable route to government. Former Labour voters still speak of their gratitude to Margaret Thatcher for the Right to Buy scheme. But as home ownership has plummeted, the Tories have struggled to sell capitalism to a generation without capital. 

In Britain, ownership has fallen to 63.5 per cent, the lowest rate since 1987 and the fourth-worst in the EU. The number of private renters now exceeds 11 million (a larger number than in the social sector). The same policies that initially promoted ownership acted to reverse it. A third of Right to Buy properties fell into the hands of private landlords. High rents left tenants unable to save for a deposit.

Rather than expanding supply, the Tories have focused on subsidising demand (since 2010, housebuilding has fallen to its lowest level since 1923). At a cabinet meeting in 2013, shortly after the launch of the government’s Help to Buy scheme, George Osborne declared: “Hopefully we will get a little housing boom and everyone will be happy as property values go up”. The then-chancellor’s remark epitomised his focus on homeowners. Conservative policy was consciously designed to enrich the propertied.

A new report from the Resolution Foundation, Home Affront: housing across the generations, shows the consequences of such short-termism. Based on recent trends, less than half of millennials will buy a home before the age of 45 compared to over 70 per cent of baby boomers. Four out of every ten 30-year-olds now live in private rented accommodation (often of substandard quality) in contrast to one in ten 50 years ago. And while the average family spent just 6 per cent of their income on housing costs in the early 1960s, this has trebled to 18 per cent. 

When Theresa May launched her Conservative leadership campaign, she vowed to break with David Cameron’s approach. "Unless we deal with the housing deficit, we will see house prices keep on rising," she warned. "The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing instead of more productive investments that generate more economic growth."

The government has since banned letting agent fees and announced an additional £1.4bn for affordable housing – a sector entirely neglected by Cameron and Osborne (see graph below). Social housing, they believed, merely created more Labour voters. "They genuinely saw housing as a petri dish for voters," Nick Clegg later recalled. "It was unbelievable." 

But though housebuilding has risen to its highest levels since 2008, with 164,960 new homes started in the year to June 2017 and 153,000 completed, this remains far short of the 250,000 required merely to meet existing demand (let alone make up the deficit). In 2016/17, the government funded just 944 homes for social rent (down from 36,000 in 2010). 

In a little-noticed speech yesterday, Sajid Javid promised a "top-to-bottom" review of social housing following the Grenfell fire. But unless this includes a substantial increase in public funding, the housing crisis will endure. 

For the Conservatives, this would pose a great enough challenge in normal times. But the political energy absorbed by Brexit, and the £15bn a year it is forecast to cost the UK, makes it still greater.

At the 2017 general election, homeowners voted for the Tories over Labour by 55 per cent to 30 per cent (mortgage holders by 43-40). By contrast, private renters backed Labour by 54 per cent to 31 per cent. As long as the latter multiply in number, while the former fall, the Tories will struggle to build a majority-winning coalition. 

George Eaton is political editor of the New Statesman.