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The Guardian - UK
The Guardian - UK
Comment
Editorial

The Guardian view on Europe’s failing economic orthodoxy: social contracts cannot be renewed through cuts

French prime minister Francois Bayrou at the French National Assembly, France's lower house of parliament, in Paris on 1 July 2025.
‘François Bayrou advocated the freezing of tax thresholds, pensions and benefits, deep cuts to the welfare budget and the abolition of two national holidays.’ Photograph: Raphaël Lafargue/ABACA/Shutterstock

As European politicians begin to pack their suitcases and head to the beach, they do so against a domestic backdrop that begins to look distinctly ominous. In Britain and France, nationalist populist parties consistently lead in the polls. In Germany, the particularly extreme Alternative für Deutschland is neck and neck with the conservative CDU. Specific dynamics might vary but the unsettling pattern is the same – large swaths of voters increasingly identify with authoritarian and often xenophobic political forces.

Prolonged post-industrial malaise, wage stagnation and austerity have precipitated this wave of disaffection with the mainstream, especially among the less well-off. Yet in London, Paris and Berlin, governments of the centre-left and centre-right seem intent on alienating disillusioned electorates still further. During his visit to London last week, the German chancellor, Friedrich Merz, heralded a new strategic partnership for changed times between Germany, Britain and France. But a much-needed economic reset, which dismantles failed fiscal orthodoxies, seems as far away as ever.

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