Growing nationalism and Euroscepticism beyond the UK and the effects thereof on global citizenship and global cooperation

Post-Brexit and the rise of nationalism within Europe

What transpired on 29 March 2017 was more than Britain's triggering Article 50 of the 2007 Treaty on European Union (TEU) and a process of negotiations about what a new relationship between Britain and Brussels would look like. Having 52% of Britons opting to leave the economic experiment known as the European Union was only one benchmark of raising nationalism, increasing Euroscepticism, and a growing mistrust of globalization in general. What Europe has seen is the advance of more right-wing and conservative political parties gaining greater political power. Examples are the Freedom Party in Austria leading the government, with its coalition partner, the Golden Dawn in Greece, the Five Star Movement in Italy, Jobbik in Hungary, the strong showing of right-wing French presidential candidate Marine Le Pen from the National Front in 2017, and the rise of the far-right Islamophobic party, the Germany Alternative for Germany (AfD). The last-mentioned seriously impeded German Chancellor Angela Merkel's Christian Democratic Union (CDU) political power. 

These sources are eroding European unity

The rise of pro-national political parties is owed to the voting masses. These are mostly older, less well-educated, and at greater risk of being replaced by highly skilled immigrants willing to work for lower wages. Such people are becoming discontented with the lack of structural reforms in Brussels post the European economic crisis. Other factors leading to the rise of resentment towards the Eurozone include the effects of globalization and technological progress (leading to outsourcing, more competition from low-wage countries, and the growth of artificial intelligence). 

As such, the European Union is being attacked by its own people, as these voters are turning to protective measures underpinned by elements of political mistrust of national and European and international political institutions, fueled by populism and by crisis-driven economic insecurity, exacerbated by the issue of unemployment. Unemployment still stands at the economic crisis levels of December 2008, even though the economic growth rate in 2017 rose to 2.3% − the best in 10 years.  Unemployment is not only high, but it is also unevenly spread throughout Europe, with Germany being far less affected than, for example, Greece. 

Between a rock and a hard place, seeking a way forward

The European electorate is grappling to find a way of upholding the founding principles of the European Union. This refers to the harmonizing of rules-based global governance and economic principles based on globalization. Individual nations are trying to protect their own nationals from economic insecurity. The issue of high unemployment remains a reality and is complicated by migrants entering the Union. In addition, border security is not simply limited to the refugee crisis and migrants entering the Union. There is also an increasing rate of terrorist attacks in France, Germany, Belgium, and the United Kingdom. 

The effect of uncertainty the political changes are creating on global citizenship.

Rising nationalism and Euroscepticism are influencing global citizenship and global cooperation. It should also be said that Euroscepticism has traditionally been entrenched in the British psyche. This may be summed up in the words of Winston Churchill (1953) 'We are with them but not of them. That said, this concept is not as concentrated in Europe itself. However, this is not so much the right-wing shift in a political dispensation that is at the heart of the concern – rather, it is the uncertainty. This uncertainty (within Britain and in the United States, with Trump's 'America First' policy) is driving high-worth individuals. More so, ultra-high-value individuals (namely, the world's billionaires that represent 1% of the world's population and own half of the world's wealth) have the funds and access to advisory firms to make lifestyle changes. These comprise, among other things, repairing to whichever country will offer them the best benefits, ranging from lifestyle, personal security, tax savings, better education for their children, investment options and preserving of wealth, global positioning, or free movement rights bypassing visa restrictions.  

Key trends in global citizenship across Europe

Although the United Kingdom remains attractive because of its global position, particularly in terms of the banking sector and the quality of life it can offer, high-worth individuals are preparing for the changes coming to the United Kingdom in April 2019. Such people are investing in migration solutions within the European Union to preserve their free movement rights. European Union countries such as Malta and Cyprus are offering citizenship by investment programs. These programs act as solutions for high-worth individuals to gain secondary citizenship and passports within a reasonably short time (ranging from three to 12 months), without needing to live in those countries: European citizens are allowed free movement within the Union and may even live in Switzerland. 

Countries such as Malta and Cyprus are benefiting, raising capital income. Citizenship may be acquired through investments, such as investing in property, government bonds, or supporting job creation, rather than relying on family descent. However, these citizen investment programs are not limited to countries in the Mediterranean. Austria offered one of the first examples of this type of program. Austria, however, required the applicant to give up one's own citizenship in exchange for Austrian citizenship. One could still live outside of that country, benefiting from the European freedom of movement. However, global citizenship has now become commercialized, offering benefits to the wealthy. 

Concluding remarks

Even with the rise of nationalism and Euroscepticism within Europe and the fall-out of Brexit on the unity of the Eurozone, the rise of the far-right is not the greatest threat to Europe and liberal democracy. Macron's victory over Le Pen has decreased the wave of nationalism in Europe.

Nevertheless, the key concept to bear in mind is that policy is not static: high-worth individuals wishing to protect their interests through global citizenship solutions must update themselves regularly on the impact of such policy changes. While preserving their wealth and lifestyle, they must also have an eye on the well-being of their families. 

Fortunately, as nationalism and Euroscepticism affect the Eurozone and its cooperation with other nations, high-worth individuals are not limited to European citizenship. Countries like Australia are becoming emerging countries for resettlement for the wealthy, offering a comfortable lifestyle and economic stability. 

European Union members such as Malta and Cypress offer indirect access to Europeans' benefits within the Eurozone. Other European countries such as Montenegro (a candidate European Union member) and Armenia are also preparing citizens by investment programs, thereby increasing the options for resettlement solutions. 

In terms of global cooperation, Europe is still linked to the North Atlantic Treaty Organization (NATO) and has a successful relationship with the United States and other Union partners. Therefore, the concept of the Eurozone is still offering economic security for member states, despite the growing nationalism and Euroscepticism across the continent. Even so, the concept of global citizenship is built on fluency and adapting to change.  

Prepared for: Henley & Partners