Brussels, 27/10/2010 (Agence Europe) - On Wednesday 27 October, European Trade Union Confederation (ETUC) General Secretary John Monks again warned against austerity measures “which are the road to ruin for the economy and citizens”. He said that the “harsh and punitive” measures of economic governance recently announced by the European Commission were unacceptable. For this reason, the ETUC and its affiliates would continue and intensify their campaign against austerity in the months to come. The next action across Europe will be on 15 December, on the eve of the European Council.
The unions say that there are alternatives to the austerity measures imposed by several European governments and that it is possible and, indeed, necessary to implement a different economic and social governance which benefits all. Furthermore, the decision by the Commission to impose sanctions on member states which do not comply with the Stability Pact will result in workers paying for the whole crisis, the ETUC says. Continuing to pursue austerity measures is not the way forward, it argues.
Pact for Single Market. Monks gave assurances that the ETUC would continue to work for social progress protocol and a review of the posted workers directive in order to counteract the negative effects of recent EU Court of Justice rulings on workers' basic rights. The idea of a social market as well as a single market in Europe has been questioned in several member states, and especially in Poland and the United Kingdom, Monks said. Will the single market only be a single market or will it be a market with a social dimension, he asked. He said he would give his response at the tripartite Social Summit.
Tackling austerity. Monks argued that the economies of the strong countries had to continue to be stimulated without too much concern for long-term debt, which had to be seen as a sort of mortgage. To show that there should be no fear of long-term debt, he cited the example of the United Kingdom “which finished paying its Second World War debt in 2007, while Germany “is still paying back its First World Ward debt”!
“We disagree profoundly with the dominant analysis in the EU that austerity is the right road to recovery. Indeed, it could be the road to ruin. Two years ago, EU governments stimulated their economies. Now there is the unmistakeable sound of gears being wrenched into reverse as they return to financial orthodoxy. Everyone is cutting, even the strong, real wages are falling, pensions are being reduced; all these are cutting demand for goods and services. This is pro-cyclical economics that risks a return to deep recession,” he argued.
Economic governance. EU plans are “harsh and punitive” on the one hand and “unconvincing” on the other. Even with the softening proposed by France and Germany, it is hard to believe that the EU can, in some way, fine a member states without provoking a crisis in the EU. If economic governance is to mean just automatic punishment, then it won't work, the ETUC reasons. There has to be more solidarity in the approach if the course on the rules is to be maintained, said Monks.
The bail-out of banks is costing governments and tax-payers huge amounts of money. Can this be avoided? “Governments had to save their banks but the costs are enormous. The Irish bail-out of its main banks, for example, cost more than the whole of Ireland's GDP!” Monks pointed out.
What will be the ETUC's central message to leaders meeting in Brussels on Thursday? Why did they ignore the last trade union Day of Action on 29 September? “I think that leaders are more afraid of international bond markets and their credit ratings, which will cost them much more. Their big priority is to keep their rating on the European markets. For the unions, there is no other option than to continue to take action,” Monks stated.
The ETUC General Secretary noted that pensions were a member state responsibility. For the ETUC, the real question to be answered is jobs for young people and for old, not extending working lives. What are needed are jobs, because without a job, older people cannot be kept in work and young people cannot be given work. (G.B./transl.rt)