When the global financial crisis hit in 2008, social democrats in Europe believed that their moment had finally arrived. After a decade in which European politics had drifted toward the market-friendly policies of the right, the crisis represented an opportunity for the political center left’s champions of more effective government regulation and greater social justice to reassert themselves.
After all, it was thanks to center-right policies that deregulated financial markets had devolved into a kind of black hole, detached from the wider global economy but exerting a powerful force on all kinds of economic activity. When the financial services industry finally collapsed, the effects went far beyond Wall Street and the U.S. economy, plunging financial markets and economies everywhere into a deep crisis that has still not been resolved.
But social democrats in Europe sensed a possible silver lining. For decades, they had argued for stiffer regulations to steady inherently unstable financial markets, to no avail. The crisis, it seemed, proved them right. Moreover, in the wake of a massive global recession, millions of people had to turn for support to the welfare systems that social democrats had built and sustained: yet another vindication, they believed.
And yet five years later, Europe’s social democratic moment has yet to materialize. Social democrats have won victories at the national level in a number of countries, including Denmark, France, and Slovakia. But these relatively modest gains have been overshadowed by a sense that Europe has fallen into a period of political volatility, a permanent emergency of sorts brought on by the flaws revealed in the euro system and the European Union as the global financial crisis morphed into a eurozone crisis. Even though social democrats have not yet been able to fully capitalize on the situation, they still have a chance to do so, but only if they come to see how the mistakes they made during the previous two decades reduced their political capital and left them ill prepared to take
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