How the climate crisis is changing Europe’s economic landscape. After four decades, the pandemic and especially the climate crisis have silenced the exponents of fiscal orthodoxy. Keynes is back.

Jon Bloomfield

Image: https://www.flickr.com/photos/jmenj/

Despite the disappointments of COP26, it’s important to acknowledge the momentum the climate movement has gained. Denialists are in retreat, while all governments are under pressure to strengthen their climate targets and actions. The climate crisis, the pandemic and the outcome of the German elections are all profoundly changing the prospects for European politics. The neoliberal right doesn’t like it but, after four decades in absentia, Keynesian economics is back.

Orthodoxy shattered

The first big sign came in the summer of last year, when after several months of sharp debate the European Union agreed a €1.8 trillion budgetary and stimulus package focused strongly on ecological and digital transformation.

What is the political significance of this shift? As the economist Jeffrey Sachs crisply expressed it in the Financial Times, ‘I would say the European Commission is carrying out a social democratic programme, not in name … but in spirit.’

Growing recognition of the climate crisis, reinforced at COP26, has combined with the outcome of the German elections in late September. Leaders of the putative ‘traffic-light’ coalition parties—the social-democratic SPD, the Greens and the liberal Free Democrats—have agreed to make major investments in Germany’s creaking infrastructure and to boost public spending for green and digital transition. They are coming under increasing pressure from German business too. In a major report published late last month, BDI, the German industry association, said the next government had to act quickly—triggering large-scale, low-carbon investments and setting the right framework to ensure the country would transform its economy to reach climate neutrality by 2045.

Joint borrowing

How can the coalition partners finance such ambitious plans, when they have already promised not to raise taxes or change Germany’s constitutionally-embedded ‘debt brake’ (Schuldenbremse), which severely limits new public debt? One proposal is to use the state bank, KfW, to finance investments. But more novel is a proposal for joint EU borrowing—via a European Commission bond programme, similar to that which the EU has launched for the recovery fund.

Keynesian road

The BDI director general, Joachim Lang, indicated the association was open to the idea of EU borrowing, to help fund the massive public and private investment necessary to meet German and European climate goals. ‘To meet its climate targets, Germany needs additional investment of €860 billion until 2030,’ Lang said.

The precise outcome of the negotiations on the German coalition programme remains uncertain. Recognition of the depth of the climate emergency is however driving industrialists and centrist politicians down a Keynesian road. The new government is likely to sidestep the debt brake by giving additional leeway to the KfW. But the more dramatic step would be to call for a new, EU-wide bond programme.

The size and shape of such a programme would of course be crucial issues for EU institutions to determine. But agreement on such a move would confirm that the European Green Deal was no one-off transaction—rather a first step towards Europe adopting Keynesian macroeconomic policies.

The return of social democracy

The tectonic plates are moving. The four decades hegemony of neoliberalism and the ‘Washington consensus’ are drawing to a close. As Sachs says, these moves herald a return to social democracy.

Three huge questions arise. First, will this shift be driven by social-democratic parties or, more likely, broader coalitions as in Germany?

Secondly, will the orthodox European right embrace the climate-change agenda

or will it lapse into the climate denialism of the nationalist right, as in the USA?

Thirdly, can the citizens’ and youth movements which have been so effective in foregrounding the environmental crisis find ways to intervene effectively in this battle? They will have to shed reflex, anti-politics populism and recognise the importance of maximising the potential of the European Green Deal.  COP26, for all its shortcomings, highlighted that politics is on the move. For progressives, there is all to play for.

Jon Bloomfield runs a regular blog series on the Green Deal with Professor Fred Steward

The full text of this article is available at Social Europe.

 How the climate crisis is changing Europe’s economic landscape – Jon Bloomfield (socialeurope.eu)

Dr. Jon Bloomfield. Honorary Research Fellow, Institute of Local Government Studies, University of Birmingham.

Policy Advisor on EU Climate Knowledge Innovation Community (KIC) programme; writes on cities, governance and migration as well as climate

Being Young in Local Government

Councillor Christopher Burden

Image: risingthermals https://www.flickr.com/photos/risingthermals/50047900938/in/album-72157714745761933/

According to the Local Government Association, the average age of a Councillor is 59, with only 15% of Councillors being under the age of 45. Nationally, 88% of Councillors identify as straight. Being a young gay councillor brings with it a dual status. Not only are you an elected official, but you also become an item of curiosity.

Six months ago, I never laboured over my identity. I was who I was and questioning this self-perception never crossed my mind. But upon election, I found the world questioning that status. Briefly, I ceased being “Chris Burden” and became a nameless entity. “The Youngest Councillor”. “The Gay Councillor”.  Concepts which were previously unspoken facets of my personality, were now my entire self. This change began while I was on the campaign trail.

Getting selected as a candidate was my first experience of the battleground of local politics. Independents don’t need to face this process, of course, but the vast majority of Councillors in the UK are party political except for notable exceptions in places like Stoke on Trent or Middlesbrough. It was here I encountered the first resistance about being young and in politics.

“Do you think that you possibly understand politics at your age?”

“Won’t you be too busy with University?”

“Will people actually vote for a person younger than them?”

To an extent they’re simple valid questions. Equally, they have simple and valid answers. Yes. No. Yes. There is a distinct Wulfrunian brashness in my response. Although this stems from a fundamental and irrevocable simplicity. Young people, just as any other community, deserve to be represented in their local areas.

Selections are a curious process in local government and effectively form the first experience of gatekeeping in the sector. Candidates aren’t necessarily rewarded or encouraged for their dedication, skill, or contribution, but rather their popularity or experience. This will vary from party to party, but the general trends are pervasive. These aren’t job interviews, in which the best candidate gets the job, but rather the candidate who is most able to convince the panels are the ones who succeed. Those who have lived long lives, or previously held positions are naturally endowed with the advantage.

This is the void where the sector must intervene to encourage youth participation and progression within political structures. Parties and councils more broadly must increase their programmes of support for those seeking election. The “Be a Councillor” programme from the LGA is an exceptionally good start, but is implemented with vast differences around the country, and does little to tailor exposure or training to poorly represented groups. As with many industries there exists a fundamental roadblock. Those who have the knowledge to look for this support, are broadly those who are less in need of the support. Professionally, I started my career in the classroom, teaching French and German. It’s here that we need to instil democratic values, but to also promote the value of local government and representation. Local government influences every facet of young people’s lives, from schools to youth centres, yet they aren’t taught to understand it as a political element. Is it any wonder that youth participation in local democracy is weak?

For those young people who do want to seek election, it’s an immensely rewarding field, providing a whole host of new and transferable skills. Even candidates who do not succeed in election learn an enormous amount about political communication and local government operations. I’ve been elected for five months and I’ve already been able to make an impact on the lives of ordinary people. High-level impact like adjusting the council home inappropriately adapted for a disabled resident, all the way down to low-level issues like supporting local charities to engage with social media. Local government is a field in which your impact can be immense, and everybody has something to give.

It hasn’t been an easy journey, and there’s challenges around every corner. But that’s exactly why we need more young people in politics. The West Midlands Growth Company estimates that 32% of the population in the West Midlands is under the age of 25, yet we could not say the same thing about our Council Chambers and Civic Centres. The lack of youth representation directly translates to a lack of understand of youth issues within politics, both locally and nationally.

Why do students find themselves at the mercy of rogue landlords?

Why is the night-time economy so poorly managed? Why are youth engagement services emaciated?

The answer is simple. When the service users are not represented in power, those making the decisions fail to recognise their impact. Young people have vital positions which they should be taking up within local government. They should be taking seats in council chambers up and down this country, and they must be supported in their ambitions to do so.

Chris Burden is the youngest councillor elected to City of Wolverhampton Council, and a University of Birmingham Alumnus. He is currently completing a PhD at Aston University, where his research concerns voting intention trends within the British and European young community.
@WulfrunianChris