Brussels, 30/03/2009 (Agence Europe) - In the run-up to the G8 labour ministers' summit in Rome on 30-31 March and the G20 summit in London on 2 April, European Trade Union Confederation (ETUC) Secretary General John Monks has set out the unions' “high” expectations to halt the surge in job losses and the rapid rise in unemployment. “It is time to act,” Monks told press in Brussels, referring to the demonstration by European and international trade unions in London on Saturday 28 March (see EUROPE 9867).
Monks drew attention, in particular, to the lessons that can be learned from the crisis in Europe. The crisis, he said, was due to smugness, here in Europe. Repeating his criticism of the downgrading by European authorities of the summit on employment to a lesser event (see EUROPE 9868), he set out what the ETUC is proposing: (1) other stimulus plans have to be built on what has already to be done: “The unions want to fight this crisis,” he said, citing demonstrations in Madrid on 14 May, in Brussels on 15 May and in Madrid and Prague on 16 May; (2) the EIB, ECB and Europe itself have to be used to raise funds for the eight countries, particularly in Eastern Europe, which are facing fiscal problems; (3) Europe has to show more ambition and there has to be broad European action. “We want to make people the priority and we want a new social deal in Europe. Europe has to be pushed to be more ambitious. That is the message we want to send,” he stated.
“We are calling for a European response and more ambitious financial resources. Without the injection of more money, it is the social sector that will pay the price, and that is something the unions cannot accept,” said his Confederal Secretary Walter Cerfeda, adding: “There may be economic anorexia, but there is certainly unemployment obesity!” The unions want: (1) an extraordinary short-term plan to cut redundancies; (2) an extraordinary plan to reduce working times: this raises the issue of wage compensation to protect purchasing power, allowing member states to use the resources of the European Social Fund (ESF) in all European countries; (3) a re-training plan, with use made of the Adjustment to Globalisation Fund (EGF) and allowing SMEs access to the EGF; (4) consumption to be boosted, collective bargaining in all countries for intervention on labour markets and a review of fiscal incentives.
Private sector intervention to avoid the bankruptcy of the economy following the collapse of banks and companies means that governments have to find the necessary funding. Ronald Janssen, ETUC economic adviser, pointed out that the is calling (1) on central banks in Europe to buy up public debt to support public investment, thereby providing low cost, stable finance for governments; (2) on the ECB to tackle financial markets speculating against euro area members and promote the purchase of those bonds which show a lower yield than the German bond; in addition, the issuance of a euro area bond has to be considered; (3) for strict conditions to be imposed to make sure excessive dividend pay outs, capital buy backs and golden parachutes can never again undermine the balance sheets of companies bailed out with public money ; (4) for an end to tax competition, a European agenda on tackling tax havens to be prepared, zero or near-zero taxes, flat rate tax regimes and working more closely together on corporate profit tax, capital gains tax and taxes on high fortunes; a financial transaction tax should be given serious consideration. (G.B./transl.rt)