The False Choice Between Neoliberalism and the Far Right: A Call for Economic Democracy

Moral opposition and centrist alliances won’t stop the far right. Only a radical restructuring of the economic system can address its roots. 

The dominant strategy against the far right, not only in Germany but in many European countries, has been based on the moto of “all against fascism”. Political forces, from the right to parts of the left, rally behind this approach, focus on electoral unity and moral opposition to the far right. However, as shown in the last few years, this is counterproductive. Aligning with neoliberal forces in the name of democracy, ends up legitimizing the very economic and political policies that create conditions for the far right to grow. When the choice is between a broad front of neoliberal policies and the far right, the latter can easily position itself as the only isolated alternative of today’s failing system. The fight against the far right is inseparable from the fight against neoliberalism.

Far right, or historical fascism, is liberalism’s emergency response to crises. In this sense, when neoliberalism faces deep instability, whether from financial collapse, social unrest, or growing demands for economic justice, it turns to authoritarian measures to preserve itself. The far right thrives on the inevitable economic crises of neoliberalism, positioning itself as anti-establishment, while at the same time protecting the interests of capital.

The rise of the far right is not an anomaly but a direct consequence of neoliberalism’s dismantling of already scarce social welfare policies. Through massive privatizations and austerity policies, power has been concentrated in the hands of the oligarchs. Financial crises such as the 2007–2008 banking collapse exposed its inability to provide stable economic solutions, generating cycles of austerity, stagnation, and radicalization that feed far right movements.

The fight against the far right cannot be reduced to a moral battle between tolerance and hate. The struggle over material conditions lies at the roots of authoritarianism. When public wealth is funneled into private hands, workers are deprived of control over their workplaces, and when entire societies are placed at the mercy of unaccountable financial institutions, democracy becomes just an empty expression. To reverse the situation, economic and workplace democracy must be at the center of the struggle.

This means breaking the hold that neoliberalism has on markets controlled by just a few powerful people. For too long, the decisions that affect the lives of millions have been made by executives and shareholders who prioritize their own profits over the needs of workers. Take Amazon as an example: the companies profit model depends not only on exploiting workers with poor conditions and low wages, but also on making money by charging third-party sellers large fees to use its platform. These sellers are often forced to accept Amazon’s high cuts, while the workers who actually create the products receive very little. Meanwhile, the executives and shareholders at the top take home the bulk of the profits. True democracy must go beyond voting rights—it should also shape how we produce goods, share wealth, and ensure the well-being of everyone involved in that process.

The contradictions and social destruction of neoliberalism are showing that its collapse is inevitable. The question is what comes next. The false choice between centrist liberals and the far right is only paving the way to even more extreme repression and austerity. The real alternative lies in a fundamental restructuring of the economic system; one that prioritizes human dignity and environmental justice over profit, cooperation over competition, and democratic control of the economy over oligarchy. This is what the MERA25 vision is about. Not only with reforms such as bringing banks under public control, strengthening social welfare and providing housing, health care and employment for all. But also, by envisioning a democratic workplace, based on the principle of one person, one vote. And even a democratic economy, where the power over the economic structures is not in the hands of a few elites and oligarchs, but in the hands of the many.

A political force that is serious about challenging the far right must oppose neoliberalism in all forms. Die Linke, for instance, despite positioning itself as a left-wing alternative, have been cooperating with neoliberal and far right parties on critical issues, such as its pro-Israel stance. Thus, helping impose repression on internationalist groups opposing genocide and occupation. It’s also to note that Die Linke’s coalitions in the past have aligned with neoliberal interests. In Berlin, between 2002 and 2007 they played a key role in selling thousands of public housing units to private corporations. In a single transaction, thousands of apartments were sold to investors, including Goldman Sachs, for 405 million euros. In 2021, when Berlin voters supported a referendum to expropriate large real estate companies and return the properties to public ownership, Die Linke, while publicly backing the referendum, joined the SPD and Greens in calling for a legal review, which has indefinitely delayed its implementation. Without a bold, transformative vision, Die Linke risks becoming just another part of the political establishment rather than a force for the necessary change.

To fight against the far right, to fight against fascism, is essentially to fight against the system that breeds it. Democracy must be more than a principle; it must be an active process of transformation. Workers must not only have a voice but play a decisive role in shaping society. This is not simply a matter of adjusting policies within the existing system but of creating new economic structures that serve the many rather than the few. Only by strengthening the collective power of society can the roots of fascism be eradicated. The path forward is not a return to the failed policies of the past but a progressive movement towards a society where real democracy extends into every aspect of life.

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