Brussels, 28/06/2004 (Agence Europe) - "In order to promote sustainable growth, action is urgent. This is why the European Confederation of Trade Unions (ETUC) is calling upon the Commission to make concrete proposals on improving European economic governance", said the deputy Secretary General of ETUC, Rainer Hoffman, on Thursday, after the European Commission adopted its communication on public finances in the EMU in 2004 (see EUROPE of 25 June, p.8). "We can no longer trust narrow structural reforms, the deregulation of labour markets and the dismantling of social security services. A balanced combination of macro-economic policies is needed to regain the confidence of consumers and workers in Europe", said Mr Hoffman, who welcomed the communication favourably, "as it goes some way in the right direction".
In his statement, Rainer Hoffman points out that ETUC has repeatedly asked for the Stability Pact to be interpreted flexibly. "A key point in improving the way the Pact works is to reinforce measures to encourage a continuation of prudent and anti-cyclic budgetary policies, i.e. ones calculated on the economic cycle rather than the current budgetary year. This makes a consolidation of public finances at good economic periods fundamental", he explained. ETUC agrees that "the specific circumstances of a country, such as the level of public debt and public investment, should be taken greater account of to improve the interpretation of the budgetary rules", said the deputy Secretary General.