The Alternative for Germany party won its first elected office in a local election on Sunday. AFP
The Alternative for Germany party won its first elected office in a local election on Sunday. AFP
The Alternative for Germany party won its first elected office in a local election on Sunday. AFP
The Alternative for Germany party won its first elected office in a local election on Sunday. AFP

Far-right rise challenges Europe's leaders to show 'democracy works' in crisis


Tim Stickings
  • English
  • Arabic

A rise of political extremes fuelled by repeated crises in Europe is challenging leaders to show that "democracy works", a former German diplomat has told The National.

The far-right Alternative for Germany party (AfD) made a historic breakthrough when it won a district election on Sunday thanks to an “unfortunate intersection” of flashpoints over immigration and the Ukraine war coinciding with the vote, extremism expert Hans-Jakob Schindler said.

Germany's handling of climate change has been blamed for worsening public discontent, while the Covid-19 pandemic is credited with having boosted conspiracy theorists on the extreme right.

The far-right has entered government in Italy and Finland in recent months while fringe parties won seats in the Greek parliament in elections on Sunday.

Mr Schindler, a director at the Counter Extremism Project and former German diplomat in the Middle East, said several crises had “deeply ingrained a sense of insecurity into society”.

“There was Covid, and then when Covid was slightly more under control, the Ukraine war started,” he said.

He said the AfD, which won the local election in the central state of Thuringia at the weekend, benefited from the recent debate about a migration crackdown in Europe.

The move to turn back migrants at Europe’s borders speaks to one of the AfD’s core issues after it first surged into Germany’s parliament following the 2015 refugee crisis.

"The only way to deal with an extremist party is not necessarily to isolate them, but to concentrate on good governance, on delivering a good argument to say democracy works," Mr Schindler said.

The AfD is under surveillance by German intelligence services because of alleged extremist leanings.

Nationalist and climate-sceptic, the party also sets itself apart from the German mainstream by taking Russia-friendly positions that question Berlin’s support for Ukraine.

The AfD’s Robert Sesselmann was elected head of the Sonneberg local government district when he received 52.8 per cent of votes in a run-off with the centre-right Christian Democrats.

After a run of electoral setbacks during the pandemic, the AfD is now polling as high as 20 per cent and has overtaken Chancellor Olaf Scholz’s Social Democrats in some surveys.

"Their fortunes changed with the war in Ukraine and, because it’s one of their core issues, with the discussion about the new European migration pact. They could really ride that wave,” Mr Schindler said.

“Whenever they are able to exploit certain divisions more, they get a little bit more. And when they’re seen as actually not contributing to any solutions to any of those things, which they usually don’t, then their fortunes fall again.”

Mr Scholz’s spokesman made a plea for tolerance in the wake of the AfD’s election win, which gives the party its first foothold in power despite other parties refusing to co-operate.

“Our country is shaped by values such as tolerance, decency and respect. This character should be maintained and consistently practised,” Steffen Hebestreit said.

A report published on Tuesday found that 8,827 cases of discrimination were reported to a German government agency last year, a record high. About a third discrimination based on people's ethnic background.

The Federal Anti-Discrimination Agency said one housing association had been caught discriminating against an Arab family after it made the same application under a fake, German-sounding name.

Germany's far right has questioned Chancellor Olaf Scholz's military support to Ukraine. AP
Germany's far right has questioned Chancellor Olaf Scholz's military support to Ukraine. AP

Discrimination such as this "can have existential consequences", said Germany's anti-discrimination commissioner Ferda Ataman.

"Anyone who searches for a flat in vain because their surname sounds Arab or Turkish, or who cannot get a job because they are supposedly too old, knows this only too well."

Germany's centre-right opposition has vowed to set out a mainstream alternative by emphasising its differences with the Greens in Mr Scholz’s coalition, whose drive to phase out gas boilers has been fiercely attacked by the AfD.

The party's electoral strongholds are in the former communist East Germany but an undercurrent of far-right sympathies exists across the country.

Raids took place nationwide in December that exposed what prosecutors said was a far-right plot to overthrow Germany’s post-1945 democracy and install an authoritarian regime.

Authorities said the plot was inspired by the Reichsbuerger (Citizens of the Reich) movement which rejects the legitimacy of the post-war state and is believed to have grown in strength during the pandemic.

Veil (Object Lessons)
Rafia Zakaria
​​​​​​​Bloomsbury Academic

FIGHT CARD

Bantamweight Hamza Bougamza (MAR) v Jalal Al Daaja (JOR)

Catchweight 67kg Mohamed El Mesbahi (MAR) v Fouad Mesdari (ALG)

Lighweight Abdullah Mohammed Ali (UAE) v Abdelhak Amhidra (MAR)

Catchweight 73kg Mostafa Ibrahim Radi (PAL) v Yazid Chouchane (ALG)

Middleweight Yousri Belgaroui (TUN) v Badreddine Diani (MAR)

Catchweight 78kg Rashed Dawood (UAE) v Adnan Bushashy (ALG)

Middleweight Sallaheddine Dekhissi (MAR) v Abdel Emam (EGY)

Catchweight 65kg Rachid Hazoume (MAR) v Yanis Ghemmouri (ALG)

Lighweight Mohammed Yahya (UAE) v Azouz Anwar (EGY)

Catchweight 79kg Omar Hussein (PAL) v Souhil Tahiri (ALG)

Middleweight Tarek Suleiman (SYR) v Laid Zerhouni (ALG)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

MATCH INFO

Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)

Where: Wanda Metropolitano
When: Thursday, kick-off 10.45pm
Live: On BeIN Sports HD

Tips for taking the metro

- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

- don't carry too much luggage and tuck it under a seat to make room for fellow passengers

Updated: June 27, 2023, 12:35 PM