Importantly, voters in crisis countries are emphatically rejecting domestic economic populism at the ballot box, and instead are accepting welfare reforms and cutbacks on a scale previously considered likely to trigger revolutions.
Certainly, Europe has seen its share of violent street protests in recent years. Smaller populist parties have emerged in several countries, such as Finland and the Netherlands. Yet these have proved unrepresentative of general public opinion in Europe.
For instance, when Ireland and Portugal went to the polls in 2011, pro-reform parties supportive of IMF austerity programs won and formed new national majority governments.
And in every national election in the EU since 2008, the most fiscally conservative platform has carried the day. This is certainly no coincidence, as Europe’s crisis has been severe enough to convince even risk-averse electorates to choose market-oriented orthodoxy over simplistic firebrands.
Certainly, Europe still has far to go, but it has put its crisis to good use.
Jacob Funk Kirkegaard is a research fellow at the Peter G. Peterson Institute For International Economics.
