WITHDRAWAL FROM THE EUROPEAN UNION: WHAT DOES IT MEAN?

Radical anti-EU parties such as FN in France, UKIP in England or Fivestar Movement in Italy believe that they just can walk away from the EU and/or renegotiate EU treaties. The reality, however, is that the only possibility being offered under EU treaty is to negotiate a withdrawal from the European Union and that can take many years. Neither the FN nor UKIP has worked out the details of how it would secure such an exit.

THE NEW EUROPEAN PARLIAMENT CHALLENGES

Anti-European Union and populist parties registered stunning gains in European Parliament (EP) elections over the last week, finishing first in several member states, including France, the United Kingdom, and Denmark. They will use their parliamentary presence as a platform for their Euroskeptic, anti-globalizing, and xenophobic discourse. This will affect the political climate in the EU and may weigh heavily on upcoming debates of strategic importance, for instance on the Transatlantic Trade and Investment Partnership with the United States.

EUROPEAN ELECTIONS RESULTS BY COUNTRY

Austria (18 seats)

  • ÖVP : 27.00% 5 seats (EPP)
  • SPÖ: 24.10% 5 seats (S&D)
  • FPÖ: 19.70% 4 seats (NI)
  • Grüne: 14.50% 3 seats (Greens/EFA)
  • Neos: 8.10% 1 seat (ALDE)

Belgium (21 seats)

THE MAIN STRATEGIES FOR EUROSCEPTIC MEPs AND HOW TO DEAL WITH THEM

Four main strategies for Eurosceptic MEPs

THE EUROSCEPTIC LANDSCAPE

The current economic crisis has served to galvanize oppositions to the European Union (EU) as evidenced by the electoral success of Eurosceptic parties such as the United Kingdom Independence Party, the Front National in France and most recently, the Alternative For Germany party.

There are qualitative differences of Euroscepticism which can be subsumed in two categories or forms:

THE PROTEST VOTE IN THE EUROPEAN ELECTIONS

The protest vote in the European elections is not nearly big enough to be labelled a comprehensive rejection of the EU, its political values and its economic crisis management over the five years since the last European elections. Eurosceptics, broadly defined, are projected to win about 130 of the EU legislature’s 751 seats (17.31%). Given that the EU has just gone through the biggest financial shock and recession of its 56-year history, the damage could have been greater.

CROATIA'S ECONOMIC OUTLOOK: NOT YET OUT OF THE WOODS

Croatia remains stuck in an unusually drawn out recession. The real GDP is projected to contract for the 6th consecutive year in 2014 (-0/6%). Unemployment has risen to 18 percent . Domestic demand remains depressed as corporations and households focus on reducing excess debt levels accumulated during the boom period in the mid 2000s. Exports and FDI are also feeble, reflecting poor trading partner growth and structural weaknesses. Macroeconomic policies that could revive growth rapidly are beyond reach.

EUROPEAN ELECTIONS VOTE PREDICTIONS

  1. European People's Party (EPP) 212 seats (28.2%)
  2. Socialists & Democrats (S&D) 209 seats (27.8%)
  3. Alliance of Liberals and Democrats for Europe (ALDE), 63 seats (8.4%)
  4. European United Left/Nordic Green (GUE/NGL) 52 seats (6.9%)
  5. European Conservatives and Reformists (ECR) 43 votes (5.7%)
  6. Europe of Freedm and Democracy (EFD) 39 seats (5.2%)
  7. The Greens/European Free Alliance (G/EFA) 38 seats (5.1%)
  8. NI (Non Attached) 95 seats (12.6%)

Note concerning NIs

BUSINESS LOBBYING AGENDA POST ELECTIONS

Post elections business wants the EU to take a different, more outward looking approach to policy-making. The private sector's lobbyng agenda for the next term of the European Parliament and the European Commission until 2019 is the following:

THE INSURGENT PARTIES IN THE NEXT EUROPEAN ELECTIONS

Across the EU, insurgent parties from right and left are poised to cause major upset, finishing at or near the top of their respective national votes. As a result, rejectionist parties look set to send their largest contingent of anti-European MEPs ever to the European parliament.

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