By Bojan Bugaric (University of Sheffield, Department of Law)

The European Union is facing an unprecedented political crisis. This club of liberal and democratic countries has been confronted by a nationalist and populist backlash that threatens the core principles at the very heart of the EU. Capitalizing on the European sovereign debt crisis, the backlash against refugees streaming in from the Middle East, public angst over the growing terror threat, and Brexit, previously fringe populist political parties are growing with alarming speed. Populists not only attack policies that are based on core institutional pillars of the European integration project, but quite often they also challenge the very foundations of the project as such.Instead of focusing only on sanctions, European political leaders should articulate a coherent alternative to the failed neo-liberal economic policies of the last decade. What counts this time are sensible economic, social and environmental policies promising to improve daily lives of European citizens. The EU needs to regain credibility by delivering simple and palpable benefits, such as good salaries, decent pensions, high-quality social services, and high environmental standards. In other words, it needs to improve what political theorists define as “output legitimacy”. Only an economic policy that promotes growth, better jobs, wages, and social inclusion can stem the nationalist tide. To prevent history from repeating itself, Europe must act now.

Source: SSRN