Economic Power Restraint: Why Collective Wealth Ensures Economic Vigor and Resilience Against the Extreme Right-Wing Faction
In Europe, the far-right challenge continues to loom large, fuelled by economic anxieties and a competitive economic model that prioritizes national competitiveness over shared prosperity.
Persistent inflation, high living costs, and economic insecurity have created a fertile ground for far-right populist parties. These parties capitalise on nationalist and nativist sentiments, presenting themselves as protectors of economic interests against globalization, immigration, and the established political elite.
The competitive economic model, which often sacrifices social equity for national competitiveness, deepens socioeconomic divides. When policies emphasize competitiveness without ensuring shared prosperity, large groups feel economically marginalized, fuelling resentment and openness to far-right narratives that promise protectionism, economic nativism, and a reclaiming of national sovereignty.
This "competitiveness trap" exacerbates economic and social divisions, which the far-right exploits by linking economic insecurity to cultural and identity fears. The far-right regards the economy primarily as a means to protect a perceived authentic national community from globalization and immigration, rather than as a common good for inclusive growth.
Economic frustration intersects with cultural and identity concerns, amplified via social media and political discourse, which sustains and expands far-right support across Europe. This economic challenge is not limited to specific countries, with voter anger evident in France, Italy, Spain, and Poland, among others.
The focus on shared prosperity will not make Europe "less competitive" or "weaker". Instead, a renewed belief in a prosperous future will make Europeans more dynamic, resilient, and better equipped to face both opportunities and challenges. The far-right's identity politics have filled the ideological vacuum left by the failure of competitiveness policies to deliver shared prosperity.
Marija Bartl, a Professor of Transnational Private Law at the Amsterdam Law School and Director of the Amsterdam Centre for Transformative Private Law, argues for a new "vision of prosperity" in her recent book "Reimagining Prosperity", available with free open access. This new vision should provide meaningful work opportunities for a broad range of people, rethinking society's relationship with technology.
The current competitiveness narrative uncritically embraces whatever extractive digital futures are advanced, leaving many behind. This return to "competitiveness" is likely to exacerbate public frustration and further fuel support for the far right. The new vision of prosperity should focus on ensuring broad access to basic goods such as housing, education, and healthcare for everyone.
The Brexit slogan "take back control" reflects this widespread sentiment. The 2008 financial crisis marked the end of optimistic politics, shattering the credibility of the neoliberal path to prosperity. The new vision of prosperity should recognize the importance of community and create spaces for face-to-face engagement.
Despite efforts to bolster economic resilience and strategic cohesion, the far-right challenge in Europe remains persistent. Recent elections in Portugal, Romania, and Poland have demonstrated this persistence. Voters are increasingly frustrated due to rising housing costs, concerns over immigration, regional neglect, and a feeling of powerlessness.
Cutting labour costs became a central solution in EU policy, but after a brief attempt to reverse economic policies with the European Green Deal, Europe is experiencing a shift back to the narrative of "competitiveness" that defined the post-crisis years. Competitiveness policies tend to worsen inequality, either directly through lowering labour costs or indirectly through market concentration and deregulation.
Ethno-nationalism offers a sense of safety to some but does not solve material problems and can destroy democratic institutions. The competitiveness narratives work against attention to health and healthy relationships, making it crucial to rethink the path to prosperity in Europe.
Education and self-development policies that prioritize the needs of all citizens, regardless of their economic background, could help address the economic insecurity driving far-right support. By providing equal opportunities for quality education, individuals can acquire the skills necessary to navigate the job market and secure sustainable employment.
Policy and legislation that emphasizes shared prosperity and tackles socioeconomic divides would counteract the far-right's promise of protectionism and economic nativism. A focus on equitable distribution of basic goods such as housing, education, and healthcare not only reduces economic marginalization but also challenges the far-right's identity politics, potentially limiting their appeal to voters.
