Denmark's election: is the Left clawing its way back?

The centre-left Social Democratic Party scored a victory in yesterday's closely-watched general election in Denmark, ending the 10-year reign of a conservative coalition that had been moving steadily further and further to the right.

The campaign of the centre-left coalition, called the 'Red Bloc', was centred around a promise to raise taxes on the country's investment banks and wealthiest citizens, reversing a trend of decreasing corporate taxes led by the previous government. The victory for this message is a stinging rebuke to the current austerity crusade dominating the governments of Europe. The Social Democrats, led by Helle Thorning-Schmidt (pictured above), promised to actually expand Denmark's welfare system, which is already one of Europe's largest. They have also promised to use the proceeds from increasing taxes on investment banks and the wealthy to improve roads, schools and hospitals.

So is this a sign that Europe's hobbled left may be on it's way back? Are voters across Europe growing tired with the messages of the right and ready to turn to a new direction? Or are the circumstances of this change in direction limited to Denmark?

The mainstreaming of Europe's 'stealth far-right'

The results from yesterday’s general election in Sweden are in – and continuing the narrative of European elections over the past five years, the results are bad news for the left. The centre-left Social Democrats lost 17 seats in the parliament – just the latest blow for a party that until recently had dominated Swedish politics.

But the ruling centre-right coalition, who will hold on to power, weren’t exactly jumping out of their seats last night in celebration. Only Prime Minister Fredrik Reinfeldt's party managed to gain seats, while his three coalition partners all lost seats. This left the coalition just short of a majority, and they will have to ally with the Swedish Greens in order to put them over the threshold. So if everyone seemed to lose seats, where did the votes go? They went to the far-right Sweden Democrats (SD), who will now enter the parliament for the first time after winning 20 seats in yesterday’s election. It's a stunning development for a historically left-of-centre country like Sweden.

Europe Goes Conservative in Crisis

If you heard a soft whimpering sound Sunday night, it was likely the sad echoes of Europe's left sobbing into their beers. All across the continent, with only the exception of Greece and Slovakia, Europe's Democratic Socialists were dealt crushing blows in the European Parliament election, whether they were the ruling party or the opposition.

Considering this result has come at a time when a majority of Europeans want to see more state action in the economy and people are reeling with anger against "fat cat capitalists", the result has left Europe's socialists scratching their heads, wondering what to do next. Though there is a mood of public anger across the EU, the ruling conservative governments in Germany, France, Italy and Poland didn't see their parties punished at the polls, in fact some of them even gained seats. On the other hand, the governing socialists in Spain, Hungary and Britain all took a drubbing at the polls. The Party of European Socialists (the block of various centre-left parties in the European Parliament that includes Britain's Labour, France's Socialists and Germany's Social Democrats) lost 20 seats.

I watched the election results while in Berlin this weekend, and I can tell you that even though the Social Democrats knew they weren't going to do great, the sheer margin between them and Angela Merkel's Christian Democrats was highly depressing for them, since it now seems certain she will no longer need to ally with them after the general election in Germany in the Fall. Sarkozy's UMP also easily defeated his socialist rivals, gaining 13 seats to put the UMP representation in the European parliament over the French socialist contingent for the first time ever. In Britain Labour received its lowest vote in the history of any UK country-wide election, coming in with a shocking 15.7%. The dismal results may even have the effect of forcing Gordon Brown to call an election, which would almost certainly lead to Labour being ousted from power.

So does this mean Europeans are turning to traditional conservative economic theory to guide them out of the current crisis? Not a chance, say most analysts. The poll result is being attributed more to the chaotic and fractured state Europe's socialists find themselves in today than any kind of ideological shift for the continent. As the Socialists have been in chaos, Europe's centre-right has hijacked the traditional tenants of socialism, co-opting the ideas of the left. Sarkozy suddenly went from being "Sarko l'Americain" to Sarko the French champion against unrestrained Anglo-Saxon-style capitalism. It would seem that Europe is now asking, what is Socialism in Europe in 2009? What is it the socialists represent?

So the coming months will see the socialists regrouping, in each country, and figuring out who they are and what they represent. It's clear they have lost control of the narrative, and they have lost credibility with much of the public. Socialist floor leader Martin Schultz was probably right Sunday night when he called the result "a very sad evening for social democracy in Europe."

*Of course the election was also a big victory for extreem parties, particularly the far-right. But I'll write more on that tomorrow. Oh and yes, the Swedish Pirate Party did win a seat. Arrr, matey!

Europe's Left Falling?

It's interesting that there seem to be simultaneous blows to Europe's left happening right now. Sunday's election in Sweden saw that country's conservative coalition claim an unbelievably narrow victory over the social democrats. The coalition has been running on a platform of tax cuts and drastic alterations to Sweden's cherished social model. This historically hasn't been a popular platform, as Swedes enjoy the highest quality of life in the world due to their generous social policies. Poverty is virtually non-existent, everyone has quality healthcare.

It was only by softening his party's stance that Fredrik Reinfeldt, the 41-year-old leader of the Moderate Party, who will become prime minister, was able to win Sunday. He ran on a platform of tax cuts and other pro-business incentives, but pledged to tweak, not uproot, the Swedish welfare system. His premise is that high taxes in Sweden discourage entrepreneurship and wealth accumulation. To fund the tax cuts, Reinfeldt is going to send Sweden on the most massive sell-off in its history, privatizing a host of now government-controlled companies including Nordea, a major bank; TeliaSonera, the largest phone company; OMX, the stock exchange operator; and SAS, a Swedish airline.