In a recent interview with journalist Alexandra Boutri, political scientist C. J. Polychroniou argued that fascist elements have already taken hold in the United States. He further cautioned that Germany is experiencing a similar normalization of far-right politics through the rise of the AfD party.
How wage suppression under Gerhard Schroeder fueled the AfD
The rise of the Alternative for Germany (AfD) party is deeply rooted in the economic shifts that occurred during the early 2000s . According to the report, the German economic miracle was built on neoliberal policies implemented by the Social Democratic government of Gerhard Schroeder between 1998 and 2005. These reforms focused on austerity, wage suppression, and an export-led growth model that prioritized industrialists and financiers over the general workforce.
As a result of these policies, net real wages in Germany remained stagnant for years. Polychroniou suggests that this economic discontent provided the perfect vacuum for the AfD, which was founded in 2013. While the party initially focused on euroscepticism, it quickly pivoted to an anti-immigration platform to capture the anger of voters who felt the political establishment had abandoned them.
The Euro's 20% competitiveness boost and German trade surpluses
The structural imbalances within the Eurozone have played a significant role in cementing Germany's position as an economic powerhouse while creating friction with its neighbors. The implementation of the euro provided a massive advantage,increasing German competitiveness by nearly 20 percent almost overnight.. This allowed Germany to build an enormous trade surplus, while southern European nations struggled with exploding debt levels and massive deficits.
The report notes that Germany's euro partners absorbed more than 40 percent of its exports, creating a lopsided economic relationship. This systemic imbalance, combined with the growing trade deficit between Germany and China, has contributed to a sense of instability. Polychroniou argues that these economic realities have made the political landscape in Germany increasingly susceptible to the extreme, anti-democratic beliefs championed by the AfD.
The 2026 US midterms and the risk of ballot seizure
In the United States, the political threat is viewed through the lens of the upcoming 2026 midterm elections. Polychroniou expressed grave concerns regarding the potential for Donald Trump to interfere with the democratic process. Specifically, the report highlights fears that the former president could attempt to deny voting rights, use federal officials to seize ballots, or declare results void based on unsubstantiated allegations of voter fraud.
While Polychroniou suggests that Democrats may have a path to controlling the House of Representatives in November 2026, the stability of the Senate remains uncertain. The political scientist also pointed to a demographic shift, noting that since the 1980s, the influx of immigrants from Latin America has brought different social views to the US compared to the European waves of the early 20th century. This shift, combined with the perceived militarization of American society, creates a volatile environment for the midterms.
Will the Democrats follow Andy Burnham's Labour Party model?
To combat the rise of extremism,Polychroniou argues that the Democratic Party must move beyond its current leadership, which he described as "hopeless." He suggests that the party needs to embrace a visionary socioeconomic agenda similar to the reforms promised by Andy Burnham and the Labour Party in Britain. This would involve tackling global warming, improving public services, and shifting power from central authorities to local communities.
However, several critical questions remain unanswered by the current political discourse. It is unclear if the Democratic establishment is truly willing to reject the pre-Trump status quo in favor of a bold progressive agenda. Furthermore, the report leaves open whether the party can successfully navigate the social conservatism of new immigrant populations or if the Political Economy Research Institute at the University of Massachusetts at Amherst—which promotes worker-centric rules—can actually influence mainstream American policy.
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