I think there's more to it than being forced to react, as I explore here: onlinelibrary.wiley.com/doi/full/10....

Really existing liberalism, the bulwark fantasy, and the enabling of reactionary, far right politics1

Click on the article title to read more.

I don't think I'm disagreeing with your thesis. I agree the bulwark strategy/fantasy has been deployed by liberal parties across Europe. But likewise I see those bulwark parties forced to abandon this tactic, as soon as cooperation with the far-right is the only way to maintain radical neoliberalism