Are European far-right parties a threat to the welfare states?
There seems to be a notion that the European welfare system is threatened by the rise of far-right parties. Is this true or is it fabrications from the mainstream media and the political parties? After all, are far-right parties really threatening democracies? Why is it a problem to be a nationalist and against immigration?
A welfare state is a form of government where the state provides services, benefits, and economic security to its citizens. This includes programs such as medical care, education, housing, childcare, financial assistance, unemployment compensation, pension, paid vacation, and many other benefits. The fullest forms of the welfare state were developed after World War II. The welfare state was seen as a middle road between the extremes of communism on the left and unregulated laissez-faire capitalism on the right. Some countries in Western Europe moved to relatively comprehensive cradle-to-grave universal coverage of the population, in particular Germany and the Nordic countries. Other Western European states were slower in the development of the welfare state such as the France and the United Kingdom.
In the postwar years following the World War II, there were basically four policy domains that laid the foundation for the welfare state: labor and immigration, tax reform and regulation, family, and the nationalization of industry. To achieve a more equal and fair society, there had to be an abundance of labor which resulted in a need for immigration to have the manpower to achieve the goals. Tax reform was necessary, and the European nations created a progressive tax system in which the higher earners would pay a higher percentage in tax and support the programs for the poorer. The family was an important factor, and the goal was to create a new generation that was independent from their parents and family and instead get support from the government. This came into effect with generous student loans and unemployment benefits. Some industries were deemed better suited to be owned by the state and there were numerous nationalizations.
In France, where the words from the French revolution “Liberté, Égalité, Fraternité,” which translates to “Liberty, Equality, Fraternity”, are part of the French national heritage and enshrined in the French Constitution. Today, France offers a variety of benefits such as health insurance, family and housing allowances, unemployment benefits and early pension. The French welfare state was rapidly built out after World War II and was initially help by an influx of cheap labor from old colonies. In particular immigrants from Algeria and other parts of Africa moved to France. Over time, this resulted in a large Muslim population. In more recent years, as the economic growth has declined and unemployment grown, many blamed the immigrants and in particular Muslims for contributing to the problems in France. This resulted in the creation of the far-right party Front National, nowadays renamed to Rassemblement National. The party has been growing through the years and is today the second largest party in France and politics has become more polarized as a result.
In the UK, the society was based on social classes and did not mature to a proper welfare state until after the end of World War II. Like France, the UK dependent on immigration from former colonies to build up the country after the war. The UK always felt skeptical toward the EU and although they did join, this question kept hanging over the country until the country had a referendum in June, 2016. The voters surprised the establishment and as a result the UK left the EU. The number of immigrants has increased significantly during the last few decades and as a result, the UK welfare system has come under increased financial pressure. Also in the UK, this has resulted in an anti-immigration party, the Reform UK party, led by Nigel Farage. In the election in 2024, the party won about 14% of the votes. In fact, smaller parties, so not Labour or Conservatives, won a record 42.6% of the votes, but in the UK election system with constituencies, they have limited impact, and the Reform UK party only has five seats in the parliament of 650 seats. This does not mean that they are powerless and there is a pressure on the Conservatives to move further right and to be tougher on immigration. New polls suggest Nigel Farage’s Reform UK party is set to make the next election a three-way race.
Germany’s welfare state is one of the Europe’s most comprehensive, providing a wide range of social services such as income support, unemployment and disability benefits, pensions, free education, long vacations, health insurance and a variety of other benefits. The German welfare state is funded through a mix of government, employer, and individual contributions. Annual spending on welfare state is about one-third of the GDP, 30.3%, or about 1.25 trillion euros. In 2013, a new party, Alternative for Germany, AfD, was founded as out of concerns of the German economy and the increased immigration. In 2015, the German leader Angela Merkel decided to help Syrian refuges and opened the German borders to welcome them. Germany experienced a surge in immigration, with more than two million people arriving in the country in a single year, mostly Muslims. In parallel, there was a spike in immigration from newer EU member countries, such as Albania and Romania. Today, Muslims make up approximately 6.6% of Germany’s population, or about 5.5 million people and is expected to continue to grow even if immigration slows or stops. The anti-immigration party AfD has established itself as a major party and current polls show that AfD is the second largest party on 18% after CDU/CSU for the upcoming federal election in February 2025. In some German states, AfD poll as the largest party with more than 30% of the votes.
The Nordic countries are by many admired for their generous welfare programs and in particular Sweden has received many immigrants during the last decades. This has helped build a stronger economy, but at the same time, immigrants have not been properly integrated and many suburbs to bigger cities like Stockholm, Gothenburg and Malmo are predominantly inhabited by immigrants, often with high unemployment and high crime rates. Sweden has experienced a rise in violent crime, linked in part to gangs with immigrant origin. An example is Malmo, Sweden’s third largest city, where nearly half the population is foreign-born or has foreign-born parents. The argument is that the lack of proper integration has resulted in ghettos with high crime rates and the immigrants have become second-class citizens. As the welfare system are supporting them, this has led to resentment from the local Swedes and an anti-immigration party has been established, the Sweden Democrats, which polled 18% in the latest election in 2022, becoming Sweden’s third largest party. The party is currently polling north of 20% and might become the second largest party in the 2026 election, after the social democrats. Although they are not in the government, the ruling center-right coalition is dependent on the Sweden Democrats, and as a result, Sweden has started to significantly cut down immigration and introduced limits on the benefits. .
The demographic aspect of the European welfare states is putting economic strains on the system as the population is living much longer, costing the state more. Changes to the benefits are often met with protests as people want to retire after decades in the workforce. Another aspect of the demographic change is the impact of immigration. Most countries in Europe used to be homogenous, white and Christian. The UK was 99% white in the 1950ies, and the Nordic countries were 99% white into the 1970ies. Many immigrations came from non-Christian religions, primarily Muslims. The lack of successful integration policies has put pressure on government services, thereby weakening social cohesion and, unsurprisingly, producing a vocal and sometimes violent backlash. Many ask why any Christian country would like to have Muslims among them?
It seems that the welfare state continues to develop and is evolving into more of a hybrid model with less government involvement and more elements of private alternatives, more restrictive immigration, and less generous benefits as the countries are tightening their finances. Far-right anti-immigration parties have gained significant power in numerous countries such as Germany, France, Switzerland, Finland, Sweden, the Netherlands and are even in power in some countries like Hungary, Italy and Austria. Are they threatening the democracies? No, it does not seem to be the case. Also, not one single country has abandoned the welfare system. It is evident throughout Europe that the welfare systems are in place to stay regardless of what political party is in power. There should be no fear for far-right parties, and it should be fine to be a nationalist who is against Muslim immigration. Christian countries should be for Christian people. It should be OK to be against diversity. Regardless of what party is in charge, the European welfare state will still be the key operation system in Europe. This has been evident in a number of countries, even though financing of the welfare system might have to be paid through higher taxes, less or no immigration, higher retirement ages and increased efficiencies. It is time to welcome far-right anti-immigration parties and accept them as part of the democratic fabric and the welfare system.
