Europe's Socialists Lose Ground in Downturn

In German Election, Voters Question Party's Ability to Bolster Economy

HANOVER, Germany -- Among the victims of the Great Recession: Europe's big-government, welfare-loving socialist parties, which so far have been unable to exploit voter anxiety over the perils of runaway capitalism.

In Germany, which will hold national elections Sept. 27, the pro-labor Social Democrats are headed to their worst showing in at least a generation, paving the way for the easy reelection of Chancellor Angela Merkel.

Despite public anger over rising joblessness and the souring of attitudes toward unregulated markets, the story is similar for left-wing parties across Europe. In France, the Socialist Party is in tatters and poses little threat to President Nicolas Sarkozy. In Italy, the weakness of the leftist opposition has helped Prime Minister Silvio Berlusconi, a billionaire, weather a series of personal scandals. In Britain, voters are poised to toss out the Labor Party, which has ruled since 1993.

Social Democrats in Europe have warned for years of the dangers of untamed markets and unchecked globalization. Although some of their predictions have proved prescient in the aftermath of last year's financial meltdown, they have struggled to convince voters that they have the tools or expertise to fix ailing economies.

In Germany, Frank-Walter Steinmeier, the Social Democrats' candidate for chancellor and Merkel's chief rival, unveiled a plan last month to create 4 million jobs and bring "full employment" to the country by 2020. But surveys found that only one in seven Germans found the proposal believable. Pundits mocked it as a modern-day version of the Five-Year Plans that never worked in communist East Germany.

"The main problem is that people think the Social Democrats have no economic competence," said Manfred Guellner, the chief pollster for Forsa, a leading German survey firm. "They have this impression that they cannot rule, cannot govern."

The Social Democrats are the junior partner in an unwieldy coalition government led by Merkel's Christian Democrats. Merkel is hoping to ditch the Social Democrats and form a new government with the Free Democrats, a smaller party with a libertarian bent that favors pro-business policies.

At a campaign kickoff rally Monday in Hanover, the mood among Social Democrats was grim. A singer leading a rendition of "Celebration" by Kool and the Gang had trouble getting the audience to clap. And the crowd of about 4,000 people barely mustered polite applause when Steinmeier took the stage in the city's Opera Square.

Steinmeier, who is Germany's foreign minister, conceded that he faced an uphill battle.

"What have I had to read these last few weeks about our chances!" he said. "Dear friends -- what an error, what an error! We have fought hard, and now we have a tail wind to help us. I promise you, the election outcome will be different from the recent polls."

He said his party had led the push for Germany's $80 billion economic stimulus package and accused Merkel of not having a plan to tackle joblessness. "We have not even begun to talk about the crisis and its causes," he said. "Believe me, I will be as happy as everyone else when the crisis is over, but it isn't. The worst is still to come."

Steinmeier's primary challenge is that Merkel remains highly popular among voters, who credit her with adopting sensible middle-of-the-road policies while shying away from overly partisan politics. Although Germans vote for parties instead of individual candidates, a Forsa poll released Wednesday showed that 57 percent favored Merkel for chancellor, compared with 18 percent for Steinmeier.