The so-called "Social Democrats" have occupied the Social Liberal space (especially where there wasn't a pre-existing Social-Liberal party), leaving the traditional Social-Democrat space to be colonised by Socialist or post-communist parties. Just recently in Spain a representative from the United Left said something to the effect of "defending Keynesianism has become akin to defending Marxism" - both in the sense that they on the left are now taking Keynesian positions, but also in the sense that Keynes is now considered as "radical" by the mainstream as Marx was 30 years ago.

But this is nothing new. The Portuguese Social Democratic Party is a centre-right party in the EPP and has given us Barroso. The Danish Venstre ("left") got its name at the turn of the 20th century when liberals were to the left of the political spectrum. Now they are right-wing liberals. They haven't moved, nor has their name changed, but the political spectrum has shifted under them.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman