Trump is everywhere: Anti-Establishment parties in the EU - Commerzbank

Research Team at Commerzbank, suggests that the election of Mr Trump is a defeat of the political and economic establishment in the US and this is also set to strengthen the anti-establishment movements in many EU countries.

Key Quotes

“These forces are in the ascendance in any case after the financial crisis undermined the public trust in the market-based economy. Furthermore, globalization produced losers, even if they are in the minority. Finally, many voters regard the EU as being dysfunctional given the refuge and sovereign debt crises.”

“The anti-establishment forces might cause the next crisis in Italy. On 4 December, a referendum will be held on the reform of the Italian Senate which is designed to make the parliamentary system more efficient. Many Italian voters, however, might use the referendum to air their distrust of the Renzi government. The no-camp is slightly leading the polls. Should the referendum fail. Mr Renzi has threatened to resign. Should this result in new elections, the fivestar movement of the former comedian Beppo Grillo might become the strongest force in parliament. Thanks to bonus seats for the strongest party, it could garner the absolute majority of parliamentary seats and elect Mr Grillo prime minister.”

“The anti-establishment forces are thus on the march, not only in the US but also in Europe. Even if they fail to come to power, they are weakening governments and create a climate where governments will not dare to push through reforms. This is cementing existing problems and is pushing the ECB ever more into the role of a monetary sweeper.”