Social Europe: The Crisis Of (Nordic) Social Democracy

The once-dominant role and current crisis of social democracy in much of Europe in the last century can hardly be understood without analysing the shift from confrontation to compromise in the relationship between the trade union and labour movement and the employers/right-wing forces. This historical compromise between labour and capital was the result of comprehensive class struggles that shifted the balance of power in favour of labour. Employers viewed such a compromise as a tactical step in order to dampen and counteract the radicalism of a strong and growing trade union movement. In Norway it was formalized through the first Collective Basic Agreement between the Norwegian Confederation of Trade Unions (LO in Norwegian) and the Norwegian Employers’ Association in 1935. That same year the Labour Party, with support from the Peasants’ Party, won government power for the first time.

Based on this compromise, the foundation was laid for the golden age of social democracy. It was a real compromise, where employers eventually had to give a number of concessions to the trade union and labour movement – including the acceptance of major political interventions in the market. Thus, the basis was laid for great social progress for workers. The welfare state developed. The Norwegian, or Nordic, model came into being. [...]

It is therefore not only the crisis of social democracy we are experiencing but that of the compromise-based post-war political model in Europe. In the first phase of this political crisis, new far right parties emerged – viz. Front National in France, the so-called freedom parties in Austria and the Netherlands, and the Progress Party in Norway. The lack of any alternative policy from social democratic and left-wing parties means they must take their share of responsibility for this development. They had no policy to take on the neoliberalist attacks on the social gains that had been won through the welfare state. In recent years, however, we have seen that new political alternatives have started to grow also on the left (Syriza in Greece, Podemos in Spain, Momentum in the UK, and the newly established Power to the People in Italy). These are young and incomplete initiatives, which can fail (like Syriza) or succeed, but in any case will further develop through struggles and experiences, victories and defeats.

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