The Impact of Populism on Economic Democracy in Europe

Recent research highlights how populism in Europe targets not just political elites but also the mechanisms of worker representation, particularly trade unions and collective bargaining. This phenomenon, observed in Austria, France, Italy, Poland, and Spain, reveals a pattern of disintermediation, where populist movements render these institutions politically secondary through processes of delegitimisation, bypass, and procedural marginalisation. Rather than outright dismantling, populism leads to an incremental hollowing of democratic governance structures that facilitate worker participation and voice.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

The study identifies three primary mechanisms through which populist disintermediation reshapes economic democracy:

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

1. Delegitimisation: In countries like France and Italy, unions are often depicted as defenders of an outdated establishment, undermining their authority. Poland experiences a combination of delegitimisation and politicisation, which narrows the autonomy of pluralist actors. Even in Austria, where social partnerships are strong, there is rhetorical pressure questioning the relevance of intermediaries.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

2. Political Bypass: In Italy and Spain, governments frequently opt for direct policy announcements, bypassing negotiations with social partners. This episodic engagement diminishes the role of unions in governance. France has seen reforms that reduce unions' agenda-setting power, indicating a shift from negotiated to state-driven change.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

3. Procedural Marginalisation: While formal institutions persist, their influence is often diminished. Consultation may occur later in decision-making, and access to key arenas may become selective, fragmenting bargaining coverage. The outcomes of these mechanisms vary significantly across countries, with Austria demonstrating resilience and Poland facing the highest risk of erosion.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

The implications of these findings extend beyond industrial relations. Economic democracy encompasses how citizens experience power and voice in their economic lives. As collective bargaining and workplace representation weaken, individual conflicts become more prevalent, widening inequalities in voice. The research suggests that while populism does not abolish unions, it can hollow out their democratic functions, leading to a shift towards executive dominance and personalised leadership.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

Critics argue that the populist approach undermines the pluralistic nature of democracy, replacing structured negotiation with unilateral decision-making. This shift raises concerns about the long-term viability of democratic governance in complex capitalist societies, where organised pluralism is essential for effective representation.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

The findings underscore the need for renewed inclusiveness and legitimacy in collective representation, particularly in fragmented labour markets. Defending economic democracy requires more than preserving formal institutions; it necessitates a commitment to revitalising the mechanisms that allow for organised worker representation.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker

As European democracies grapple with the challenges posed by populism, the focus will likely shift towards strategies that reinforce the role of collective representation in governance. The ongoing struggle will determine whether societies can maintain a pluralist approach to economic power or succumb to increasingly personalised forms of rule.

Populism’s Real Target in Europe Is Not the Elite — It Is the Worker