After a recent trip to Europe I have returned to South Africa more convinced than ever that European citizens (both civilians and professionals) are truly in denial about the financial recession as well as the future implications thereof.
Whilst it seems that the European politicians are beginning to grasp the financial challenges which European countries are facing, there is no doubt that the man on the street has little to no grasp about the dire straits in which their countries are in. I am not sure whether this is a result of poor communication from governments, an economic illiteracy of the general populous or the fact that many European countries have been nanny states for too long? None of the reasons matter anyway as the general population of Europe is, knowingly or unknowingly, faced with little option but to get a very rude awakening.
What this might mean for the next round of elections in European states is uncertain, although a backlash against anything foreign to the respective countries is highly likely. Expect an increase in resistance to immigrants whom European citizens will feel are stealing jobs and opportunities; a lack of trust in politicians and large corporates who continue to be greedy as well as rioting when the general majority does not (read cannot) get their way.
This denial should be very concerning for businesses in Europe as there will be a necessary downscaling which may well end up in more retrenchment and joblessness across the continent. This has the potential to result in new waves of nationalism, socialism and zenophobia (as mentioned above) against people who are not seen to be European.
For non-democratic states, I believe that they will do what needs to be done for the benefit of their people and state interests. For the democratic states, this could well mean the fall of governments and politicians. It remains to be seen whether or not anybody in power has the courage to deal out the harsh medicine of putting austerity measures in place. This, of course, begs the question – Do politicians do what gets them into power or what is actually right for the country. Living in denial will only be to their own detriment…
