| DAVOS, Switzerland
DAVOS, Switzerland Jan 22 The risk of a lurch
to the right in May's European parliamentary election is vexing
top global chief executives, who worry that the vote will make
the bloc harder to govern just as they want it to reform.
High unemployment, austerity fatigue and still anaemic
growth offer the perfect backdrop for fringe parties to prosper
at the election.
Some pundits predict a group of anti-euro parties including
the National Front in France, Britain's UKIP, Syriza in Greece
and the Dutch Freedom Party could capture 20 percent or more of
That could pressure the European Union's main party groups
to tack right and challenge Europe's ability to integrate
further, given new powers the parliament will have to rule on
the majority of EU legislation.
For CEOs at the annual gathering of the global elite in
Davos, the May election looms as a big risk for Europe's
economic outlook even if a euro zone break-up has been averted.
"True tail risk has disappeared. However there is a risk
that there may be some risk coming back this year," Axel Weber,
UBS chairman and former Bundesbank president, told a
session at the forum on Wednesday entitled "Is Europe back?"
Weber cited potential gains by Eurosceptics in the elections
as a risk, which he said could complicate the political process
in the EU. "Just think of how the Tea Party has made governance
difficult in the U.S."
Recent polls show France's anti-immigrant National Front has
gained support since the 2012 presidential election in which
party leader Marine Le Pen came third with 17.90 percent of the
vote, the best first-round score in its history.
Pierre Nanterme, French CEO of non-French company Accenture
, an outsourcing and consulting services provider, said
he was concerned about high unemployment fuelling a "rise of the
"I'm extremely concerned at the result of the European
election. We need to be extremely careful because if we are not
creating a more inclusive environment, people are going to ask
what is the purpose of Europe."
Euro zone unemployment remained stuck at a record high in
November, the latest month for which official data is available,
with 12.1 percent of the bloc's labour force out of work for the
eighth month in a row.
In Greece, the jobless rate is running at 28 percent. In
Spain it is at 26 percent.
However, Finland's Europe minister said a surge in support
for anti-European populist parties in the European election has
been exaggerated and will not prevent a "moderate majority" from
moving forward with EU integration.
Alexander Stubb, minister for European affairs and foreign
trade, who last week announced his candidacy for the
centre-right in May, said he expected Eurosceptical far-right
and hard left groups would win from 10 to 20 percent of seats in
the EU assembly, compared with 12 percent in the outgoing
"It will be less than many commentators would expect, but
more than they had in the last parliament," he told Reuters in
an interview at the World Economic Forum in Davos.
Stubb said there would still be a solid pro-European centre
that would unite on pivotal issues, while he doubted that all
Eurosceptical parties would find much in common with France's
National Front or the anti-Islam Dutch Freedom Party of Geert
For Christophe de Margerie, chief executive of French oil
major Total, Europe needs to change the way it
perceives of itself regardless of the outcome of the election.
"Don't take it as being provocative but I think Europe
should be reconsidered as an emerging country," de Margerie
said, and must "go back to competitiveness."
"Today we are just trying to fight against those who are
making sometimes the same product at a cheaper cost. We cannot
compete like this. We have to upgrade the skills of our
engineers, workers, at all levels and force them to bring new
products to the market.
"And also, let's stop making the difference between south
Europe and northern Europe because in that case Europe is dead,"
de Margerie added.