Brussels, 02/10/2007 (Agence Europe) - During its plenary session of 26 September, the European Economic and Social Committee (EESC) adopted, by a very large majority, three own-initiative opinions concerning various key issues of European economic integration. The first focused on the subject “The EU Economy: 2006 Review. Strengthening the Euro Area: Key Political Priorities” (rapporteur Umberto Burani, employers' group, Italy; co-rapporteur Olivier Derruine, workers' group, Belgium); the second on “The Economic and Social Consequences of the Development of Financial Markets” (rapporteur Olivier Derruine); the third on “Economic Policies Which Favour the European Industrial Strategy” (rapporteur Susanna Florio, workers' group, Italy).
Presenting the three opinions to the plenary session, the president of the Economy section of the EESC, Georgios Dassis (workers' group, Greece) laid emphasis on: (1) improved coordination of the euro zone, (2) transparent rules and effective controls on “creative finance” and (3) an economic policy promoting the European industrial strategy. The achievement of these three objectives, continued Georgios Dassis, will help to boost growth and employment in the context of a healthy economy in real terms. President Dassis also reminded the national and European political decision-makers that “the single currency must serve the citizens, employment and well-being”, stressing, in conclusion, the need to “keep an eye on the development of the financial markets and speculators”.
EESC gives its support “with reservations” to the idea of European Stabilisation Fund
In its adoption of the Burani-Derruine opinion, by 133 votes in favour and two against, the Committee hopes to achieve a convergence of economic, monetary and employment policies, by bringing in joint meetings of the Eurogroup and the Employment Council. The EESC notes that the weight acquired by the euro as an international currency should confer upon it the necessary authority to be able to propose its candidacy, once again, for a seat at the IMF. It is not a question of taking the seat of one of the member states which is a member of the IMF, but of creating a new seat, according to an EESC press release. The Committee also welcomed, “with many reservations”, the idea of the European Stabilisation Fund, designed to bridge the growth gaps between the member states. This fund would be paid for out of the surplus tax revenue accumulated during economically favourable periods, and would go to fund projects of Community interest, the EESC concludes.
EESC pleads in favour of new balance between shareholders and workers
The EESC adopted, by 115 votes in favour, 25 against and 13 abstentions, the Derruine opinion, which is “quite critical” of the development of the financial markets. This opinion was described by the rapporteur as “non-partisan, because it drew support also from the employers”. In the view of Olivier Derruine, “what is politically important in this opinion is the link between the development of the financial markets and the economic and social situation”. “The Committee acknowledges that the financial markets do not develop autonomously, but that they have an impact (…) on the social model and on social cohesion. The economic and social systems in which we live are inter-dependent”, stated the Belgian Unionist (our translation throughout).
“What this opinion is saying is that a new balance must be sought between the shareholders of a company and its workers”, he explained. “The imbalance is reflected, amongst other things, in an exponential development of the financial and stock markets over the last few years, which is in contrast with an employment law that has developed in the opposite direction, i.e. not providing the workers with sufficient protection, either contractually or in terms of continuous training, for example. This takes account of the fact that the flexibility - and increased insecurity - of employment are becoming the balancing variable of businesses”, continued Mr Derruine.
The Committee's principal recommendations are: (1) developing statistical tools to keep more of an eye on the hedge funds and private equities industry; (2) for the Commission to encourage and pursue, together with the interested parties (banks, consumer associations, public authorities and service providers, etc), initiatives aiming to boost the level of information available, and more importantly, to boost the understanding of consumers of financial services; (3) for companies quoted on the stock exchange which are bought out to publish a minimum level of information when they are withdrawn from the stock exchange; (4) regarding pension funds, pursuing a longer-term strategy, granting tax advantages to encourage them to integrate quality and social responsibility in their financial investment policies; (5) for the Commission and member states to ensure that corporate social responsibility covers all interested parties, including the venture capital fund.
EESC wants EIB to help economic and social cohesion
The vote for Florio's opinion by 129 in favour, with 2 against and with 5 abstentions means that the Committee considers the following necessary: greater integration of the Broad Economic Policy Guidelines (BEPG) in the Lisbon strategy; greater initiatives in support of investment in innovation and new technology in the industrial sector; that the EIB decisively contributes to economic and social cohesion. In the area of fiscal policy, the EESC want administrative charges lowered, particularly those affecting SMEs. (gb)