Alexis Tsipras in Athens, January 2015. Photo: ANGELOS TZORTZINIS/AFP/Getty Images
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Never mind the Euro: Syriza's win could threaten mainsteam politics across Europe

New Greek Prime Minister Alexis Tsipras may be the man who consigns centrist politics to history.

When Syriza’s Alexis Tsipras first surged in the opinion polls in 2012, many in the eurozone feared that his election would destroy Europe’s economic order by forcing Greece to give up its currency. Three years on, the talk is of a political rather than an economic domino effect. Now that Tsipras has been inaugurated as Greek prime minister, it seems he could be the man to save the euro by allowing it to adjust its economic policies, upending the continent’s established political order in the process.

A couple of years ago I watched Tsipras introduce himself to the American foreign policy elite. “We are psychologically prepared for a clash,” he told a startled audience at the Brookings Institution in Washington, DC, “because in politics there is no such thing as tea and crumpets: there are interests that are conflicting with each other.”

The clash is now real: battle lines are drawn between Syriza and the eurozone. The party has set out a trifecta of goals: a €2bn welfare programme, an attack on “antisocial oligarchs” and a write-down of at least half of Greece’s public debt. At the same time, Jeroen Dijsselbloem, leader of the Eurogroup of finance ministers, is already warning about the dangers of not sticking to prior agreements.

There is a danger of miscalculation because both sides think they have the upper hand. When I saw Tsipras speak, he said: “If Greece was not in the eurozone, I have no doubt that nobody would care about Greece’s situation. [But] Greece is one of the links that make up the eurozone. And if one breaks, it won’t only be bad for the link, it’ll be bad for the entire chain. We know this, and our friends in Germany know this as well.”

On the other hand, the consensus in Berlin is that the fallout from a Grexit could be contained. There is now a bailout fund for sovereign nations and a European banking union. Private banks have divested themselves of Greek debt and the markets seem becalmed.

Most analysts think there is a deal to be made by extending the length of the debt, lowering interest rates and offering more flexibility on social spending. When I spoke to a political friend in Greece who strongly opposed Syriza, even he had to concede that Tsipras had a better chance of getting a good deal than Samaras and the mainstream parties. “If he gets some resources to alleviate poverty and a symbolic way to escape the clutches of the Troika, he will be able to sell an agreement. Berlin, on the other hand, has to be very careful. Imagine if there was a Greek exit as a result of confrontation with Germany. There would be uproar across Europe.”

The markets appear to agree. Economic commentators, from the Wall Street Journal to the Guardian, seem to think that Syriza could save the euro by tempering Berlin’s self-defeating austerity.

Mainstream social democrats – including the prime ministers of France and Italy – hope to use Tsipras’s victory to persuade Angela Merkel to agree a settlement that caters to Europe’s social problems and helps avoid deflation. For much of Europe, the biggest danger of the Syriza win is less the collapse of the euro than the collapse of mainstream politics.

Tsipras’s election – and the annihilation of the once-dominant PASOK, which scraped barely 5 per cent in the election – is part of a larger trend of political fragmentation in which Europe’s established parties have been crowded out by insurgents from the left and the right. The most immediate challenge will be in Spain, with the emergence of Podemos, the Latin American-inspired party founded in 2014 with a mission “to stop Spain being a colony of Germany and the Troika”.

José Ignacio Torreblanca, who is writing a book about Podemos, thinks it significant that Syriza immediately went into alliance with the right rather than exploring alliances with centrist forces. “It shows that their goal is to change the axis of political competition from left v right to one that pits Europe against the nation,” he says. Torreblanca fears that Tsipras’s victory opens the door to a clash of populisms, with the anti-solidarity right rising in Germany, Finland, Austria and Sweden to counter southern populists of the left.

Last year’s European elections pitted insurgent parties (Ukip, Syriza, the Front National) against the technocratic elite who have driven the EU for the past few decades. But if the mainstream parties fail to find a way of reinventing themselves, politics in Europe may soon move beyond a battle between populism and technocracy.

Alexis Tsipras may be the bearer of a new settlement that confronts populism with populism, leaving the established centrist parties on the scrapheap of history. 

This article first appeared in the 30 January 2015 issue of the New Statesman, The Class Ceiling

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As a Conservative MP, I want Parliament to get a proper debate on Brexit

The government should consider a Green Paper before Article 50. 

I am very pleased that the government has listened to the weight of opinion across the House of Commons – and the country – by agreeing to put its plan for Brexit before Parliament and the country for scrutiny before Article 50 is triggered. Such responsiveness will stand the government in good stead. A confrontation with Parliament, especially given the paeans to parliamentary sovereignty we heard from Leave campaigners during the referendum, would have done neither the Brexit process nor British democracy any good.

I support the government’s amendment to Labour’s motion, which commits the House to respecting the will of the British people expressed in the referendum campaign. I accept that result, and now I and other Conservatives who campaigned to Remain are focused on getting the best deal for Britain; a deal which respects the result of the referendum, while keeping Britain close to Europe and within the single market.

The government needs to bring a substantive plan before Parliament, which allows for a proper public and parliamentary debate. For this to happen, the plan provided must be detailed enough for MPs to have a view on its contents, and it must arrive in the House far enough in advance of Article 50 for us to have a proper debate. As five pro-European groups said yesterday, a Green Paper two months before Article 50 is invoked would be a sensible way of doing it. Or, in the words of David Davis just a few days before he was appointed to the Cabinet, a “pre-negotiation white paper” could be used to similar effect.

Clearly there are divisions, both between parties and between Leavers and Remainers, on what the Brexit deal should look like. But I, like other members of the Open Britain campaign and other pro-European Conservatives, have a number of priorities which I believe the government must prioritise in its negotiations.

On the economy, it is vital that the government strives to keep our country fully participating in the single market. Millions of jobs depend on the unfettered trade, free of both tariff and non-tariff barriers, we enjoy with the world’s biggest market. This is absolutely compatible with the result, as senior Leave campaigners such as Daniel Hannan assured voters before the referendum that Brexit would not threaten Britain’s place in the single market. The government must also undertake serious analysis on the consequences of leaving the customs union, and the worrying possibility that the UK could fall out of our participation in the EU’s Free Trade Agreements (FTAs) with non-EU countries like South Korea.

If agreeing a new trading relationship with Europe in just two years appears unachievable, the government must look closely into the possibility of agreeing a transitional arrangement first. Michel Barnier, the European Commission’s chief negotiator, has said this would be possible and the Prime Minister was positive about this idea at the recent CBI Conference. A suitable transitional arrangement would prevent the biggest threat to British business – that of a "cliff edge" that would slap costly tariffs and customs checks on British exports the day after we leave.

Our future close relationship with the EU of course goes beyond economics. We need unprecedentedly close co-operation between the UK and the EU on security and intelligence sharing; openness to talented people from Europe and the world; and continued cooperation on issues like the environment. This must all go hand-in-hand with delivering reforms to immigration that will make the system fairer, many of which can be seen in European countries as diverse as the Netherlands and Switzerland.

This is what I and others will be arguing for in the House of Commons, from now until the day Britain leaves the European Union. A Brexit deal that delivers the result of the referendum while keeping our country prosperous, secure, open and tolerant. I congratulate the government on their decision to involve the House in their plan for Brexit - and look forward to seeing the details. 

Neil Carmichael is the Conservative MP for Stroud and supporter of the Open Britain campaign.