…The euro has proved to be fundamentally at odds with social democracy. In its most successful Swedish version, social democracy has been a nationally legitimate social contract to redistribute resources among those who share historical and cultural ties. The straitjacket of the euro ideology, however, places the burden of national competitiveness on lower workers’ wages; and it enforces ill-timed and excessive fiscal austerity measures that limit options in domestic economic policymaking. The euro, therefore, prevents the formation of domestic alliances that could create “a sense of national purpose.” The policy straitjacket is reinforced by the presumption that each national ship must face the risk of sinking to its own bottom, a presumption that undermines the Blair-Schröder call for a “common destiny within the European Union.”
April, 2018, Wiesbaden: Andrea Nahles, the new SPD party leader, presents former party leader Martin Schulz with a picture. Bernd von Jutrczenka/ Press Association. All rights reserved.European social democrats have continued to haemorrhage support. The conclusion seems sadly inescapable. On its current course, unable to generate a domestic consensus and powerless to counter the narratives and priorities dictated by the euro, the political practice of social democracy will continue to fail at home while divisions among member nation states deepen.