THE ECONOMICS OF DISCONTENT IN THE EUROPEAN UNION

Abstract

The European Union was established in order to create a more peaceful European continent through economic and social integration. To date, the EU has been successful; however, new challenges have begun to emerge. In particular, have the EU’s economic policies and German immigration procedures influenced the rise of populism in Germany, as represented by the populist group Alternative für Deutschland (AfD)? This question is answered by evaluating EU economic performance and mobility factors, as well as recent immigration trends in relation to the AfD’s formation and growing popularity. Furthermore, it appears that economic shortcomings and a declining workforce have created a demand for labor in Germany that has not been met by internal EU factors. As a result, over the past several years the German government has attempted to source its labor demand from outside the EU, namely through immigration from the Middle East and North Africa. However, many of the economic advantages often associated with immigration have yet to materialize. Over this same period, the AfD has experienced a significant increase of support within Germany. What is more, analysis indicates that the AfD’s recent success is potentially related to challenges associated with EU economic performance and immigration. Although the AfD’s recent success is troubling, the party likely does not pose near-term threat to the EU, unless the EU or global economy experiences another severe economic downturn.