Europe Votes: What the EU Elections Mean for South Africa and the World 

Europe Votes: What the EU Elections Mean for South Africa and the World 

Europe is holding important elections that could change the way its leaders govern—and the impact may be felt far beyond its borders. These EU elections aren’t just about who wins more seats in parliament; they could shape global markets, shift foreign policy, and affect countries like South Africa in both direct and indirect ways. 

Across Europe, there’s rising support for right-wing and nationalist parties. Many of these groups want to slow down EU integration, reduce immigration, and rethink climate change rules. If they gain enough power in the European Parliament, it could cause political gridlock—making it harder to pass economic policies that promote stability and growth. This kind of uncertainty often makes global investors nervous, which can lead to financial market volatility. 

A less united Europe could slow down progress on important regulations that affect trade, tech, and environmental policy—areas that matter to South Africa’s exports and partnerships. For example, South African agricultural products, wine, and metals are closely tied to European demand. If EU policies shift, or if trade becomes more complicated, it may impact local businesses and job markets. 

The value of the euro is also something to watch. If investors lose confidence in Europe’s political direction, the euro could weaken. That might sound far away, but it matters here: changes in currency strength affect how much South African businesses pay for imports or receive for exports, especially those priced in euros or dollars. 

Global markets, including South Africa’s Johannesburg Stock Exchange (JSE), often react to major developments in Europe. If European stocks drop or investors shift money to safer assets like gold, that can create both risks and opportunities for South African investors. On the flip side, any financial instability in the EU might push more investment into emerging markets like South Africa—as long as our own economy remains relatively stable. 

The EU elections may also affect European funding for African development projects. A shift in political power toward inward-looking parties could reduce European interest in global aid and cooperation. That might limit funding opportunities for infrastructure, healthcare, and renewable energy in South Africa and across the continent. 

Still, the outcome isn’t all negative. A more diverse parliament could also bring new perspectives and force European leaders to create more balanced, thoughtful policies. If handled well, it could improve transparency and build more trust with global partners. 

At PW Harvey & Co., we help investors see beyond the headlines and understand how global shifts—from Brussels to Pretoria—can affect local decisions. The EU elections are a reminder of how deeply interconnected the world’s economies have become. For South Africans, staying informed and adapting to global changes is key to making confident investment choices.